{
  "id": 3377602,
  "title": "Cos down bitter wage pill as gigs turn sweeter",
  "url": "https://urgent.news/2026/08/25/cos-down-bitter-wage-pill-as-gigs-turn-sweeter",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-25T23:30:00.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/jobs/fresher/minimum-wage-hikes-add-to-cost-pressures-for-retailers-and-gig-firms-ahead-of-festive-season/articleshow/133523633.cms"
  },
  "original_language": "en",
  "account": "Companies that employ lower-paid gig workers, including retail shop-floor staff, delivery partners, and factory workers, are facing a new financial strain ahead of the holiday season. Since April, over 15 states have raised their minimum wages, putting additional pressure on businesses already struggling with higher commodity prices, freight rates, and a declining rupee.\n\nEternal, Swiggy, V-Mart Retail, Vishal Mega Mart, Delhivery, and Amber Enterprises have all reported margin impacts due to the wage hikes. Swiggy's sequential contribution margin fell 20 basis points in the most recent quarter, while Eternal experienced a 45% year-on-year increase in employee benefit costs. To avoid penalties, these companies are implementing the revised minimum wage rates despite concerns over non-compliance.\n\nDelhivery's CFO, Vivek Pabari, noted that minimum wages have a more significant impact since there's no contractual pass-through clause. In contrast, fuel-cost increases have contractual pass-through, helping cushion margin protection. However, logistics companies like Delhivery are revising prices across client contracts to offset the wage bill increases, which they anticipate continuing through the second quarter. Despite the challenges, full-year margins are expected to remain stable as long as business volumes recover in the festive season.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}