NOIDA: With rising costs across various sectors, your monthly maintenance bill is likely on the verge of an increase.
This surge is unrelated to the US-Iran conflict, but stems from the recently enacted labour code. Many condominiums and gated communities in the NCR are currently revising their maintenance budgets due to the higher minimum wages mandated by this new legislation. Society managers estimate that the bill could rise by approximately 20-30%, contingent on the type of employed staff.
In most communities, labor costs — including security, housekeeping, horticulture staff, electricians, plumbers, and lift operators — account for 70-85% of the maintenance budget. Consequently, the wage adjustments represent the most significant expense increase that Resident Welfare Associations (RWAs) and Apartment Owner Associations (AOAs) have encountered in years. The escalating cost of diesel, which powers backup systems in societies, has further constrained financial flexibility.
Several societies have already adjusted their Common Area Maintenance (CAM) charges. For instance, at Emaar Palm Gardens in Gurgaon, the recent decision followed a general body meeting. “Our updated payroll has increased manpower costs by about 35%. We’ve raised CAM charges from Rs 3.15 to Rs 4.37 per square foot,” stated Sunil Sharma, president of the RWA. For residents, this means an additional monthly cost of Rs 2,500-3,000.
Similarly, Prateek Wisteria in Noida’s Sector 77 has already raised its charges by 60 paise from the existing rate of Rs 2.7 per sq ft.
In Ghaziabad, Orange County in Indirapuram notified residents that their maintenance charges hadn’t changed in nearly 17 years. “Adhering to the new wage standards is a legal requirement. We’ve looked into various ways to minimize the impact on residents, including vendor negotiations and service charge reassessments,” reads their communication. However, the society has yet to revise its charges.
At Skytech Magadh in Vaishali, which has not altered its charges of Rs 2 per sq ft since 2012, the AOA is considering a potential increase to Rs 3 per sq ft, pending approval at a general meeting later this month.
Numerous AOAs are exploring cost-cutting alternatives and reevaluating their workforces to manage expenses. “While some increase is likely unavoidable, our aim is to find the most efficient and resident-friendly solution. We plan to share our recommendations with residents in the upcoming months,” noted Kavita Kumar Rajesh, AOA president of Exotica Fresco in Noida’s Sector 137.
Ultimately, AOA and RWA members anticipate they may have no choice but to increase CAM charges. At Gurgaon One, former RWA president Saket Singh mentioned that a hike seemed inevitable, estimating an increase of nearly Re 1 per sq ft — with charges needing to shift from approximately Rs 4 to Rs 5 per sq ft. Many RWAs, Singh noted, have already depleted standard cost-cutting strategies. “Most have upgraded to LED lights and optimized energy usage. There’s little room left for further cuts without compromising essential services,” he emphasized.
In Greater Noida West, Arihant Arden is addressing rising electricity costs in common areas by launching a 500 KWp solar system, which is anticipated to be the largest of its kind in NCR residential communities. “After the wage hike, we estimate the additional monthly maintenance cost to be around Rs 5.31 lakh — where Rs 2.97 lakh is for security services and Rs 3.34 lakh for housekeeping. We will seek approval to raise charges by 25 paise per sq ft. The solar panels should help lower electricity expenses,” explained AOA president Nishith Chaturvedi.
RWA president of Gurgaon’s Rising Homes, Praveen Malik, illustrated the financial strain, especially for larger societies. “A community with 700-800 apartments might employ around 100 staff. For instance, an increase of Rs 3,000 in a security guard’s salary translates to an added cost of nearly Rs 1.5 lakh monthly for societies employing 50 guards,” he conveyed.
Former AOA president of Logix Blossom County, Sector 137, Noida, Manoj Prasad, noted that the extent of the impact will heavily depend on each society’s existing cost framework. “Essential factors include whether current CAM collections can sustain the wage hikes, if any surplus can neutralize the increases, and what further amounts will need to be collected from residents,” he clarified. With their CAM charges fixed at Rs 1.83 per sq ft since 2018, Prasad suggested optimizing manpower and staff rationalization as viable strategies before passing costs to residents.
At Gaur Grandeur, Sector 119, and RG Residency, Sector 120, the AOAs are currently holding off on adjustments. “We are reviewing options to absorb the new wage costs. Only a 10 paise increase has been implemented in the last eight years,” mentioned Ashutosh Rai, AOA secretary of Gaur Grandeur.
Residents Push Back
Some residents are hesitant to accept increased charges without thorough examination. At Supertech Eco Village 1 in Greater Noida West, residents protested against a proposed rise from Rs 2.36 to Rs 3.25 per sq ft, citing unfair financial burden amid a lack of transparency or improvements in service quality, as expressed by resident Ranjana Suri Bhardwaj. Protests of a similar nature occurred at Tata Eureka Park and Crest Villa, Godrej Golf Links.
At BPTP Astaire Gardens in Gurgaon, resident Debojit Hore pointed out that CAM charges have nearly doubled in 18 months, moving from Rs 2.95 to over Rs 4.35 per sq ft. “Maintenance firms are leveraging the wage adjustments to validate escalations throughout their cost structures. Residents have minimal insight into these calculations,” he remarked. Hore additionally highlighted that benefits from GST input credits are seldom passed on to residents, even though societies and maintenance agencies receive credits from their vendors.
At Antriksh Golf View 2 in Sector 78, Noida, residents are contesting the frequency of charge revisions. “A proposal for a rise of 30 paise per sq ft, alongside an increase in DG charges from Rs 16 to Rs 27 per unit, has been circulated just six months after the last adjustment,” complained resident Ranjan Samantaray.
Puneet Sharma, president of the Noida Federation of Apartment Owners Associations (NOFAA), which represents over 120 high-rises, characterized the situation as a convergence of pressures. “It’s a triad of challenges: revised minimum wages, soaring fuel prices, and an impending electricity rate increase in UP — all of which will strain household budgets,” he stated. NOFAA general secretary Surojit Dasgupta added that AOAs are also facing growing compliance requirements involving GST, income tax, labor laws, safety regulations, and operational needs for sewage treatment plants. “Navigating these compliance standards demands financial resources and skilled personnel, making residential community management more complex than ever,” he explained.
RWAs are seeking governmental assistance, with some advocating for a higher GST exemption threshold on maintenance fees, tax relief for residential societies, or offsets through property taxes. “Ultimately, the wage revision burden falls on residents. There should be a system in place to protect them from sudden spikes,” emphasized Sharma of Emaar Palm Gardens.
