Hyundai India inks 3-year wage pact; employees to get Rs 31,000 monthly hike

Hyundai Motor India Limited (HMIL) has signed a long-term settlement agreement (LTS) with the United Union of Hyundai Employees (UUHE) on September 17, 2025.

The wage pact, effective from April 1, 2024, to March 31, 2027, introduces a revised all-inclusive compensation package. The agreement provides for a salary increase of Rs 31,000 per month, staggered over three years in the ratio of 55%, 25% and 20%.

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Registered in 2011, UUHE is the officially recognized union of HMIL employees and represents 1,981 members as of August 31, 2025, accounting for nearly 90% of the technician and workmen cadre.

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The announcement in India comes amid wage-related unrest at Hyundai’s home base in South Korea. Earlier this month, Hyundai’s Korean union--representing around 40,000 members staged partial strikes at three plants, demanding shorter working hours, a 30% bonus from 2024 net income, higher retirement age (64 from 60), and a switch to a 4.5-day work week.

Meanwhile, tensions have also escalated in the US. On September 4, about 475 people, mostly South Korean nationals, were detained during a raid at a Hyundai-operated EV battery plant in Georgia as part of President Donald Trump’s crackdown on illegal migrants. Over 300 workers returned to South Korea last week after a week-long detention. Seoul has since called for an official apology, while trade unions have raised concerns over alleged human rights violations.

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