
India's large informal workforce is most vulnerable, as workers without paid leave or social security lose income whenever extreme heat reduces working hours.Extreme heat could cost India more than 19 working days every year in agriculture and construction by 2030, threatening workers' incomes, increasing healthcare costs and deepening the country's cost-of-living crisis, according to a new global report. The study warns that without stronger climate, labour and health policies, rising temperatures could push millions of vulnerable workers closer to poverty.
A discussion brief titled "Heat, Health and Increasing Cost of Living: A Call for Action", released by Berlin-based think tank adelphi global, highlights the growing economic impact of climate change on households. The report examines eight countries—Bangladesh, Brazil, France, India, Indonesia, Italy, Nigeria and South Africa—and finds that India is among the worst affected by heat-related productivity losses.
19 working days
According to the report, Bangladesh, India, Indonesia and Nigeria are projected to lose more than 19 working days annually in the agriculture and construction sectors because of extreme heat. These sectors involve physically demanding outdoor work where access to cooling facilities and shade is often limited, making workers particularly vulnerable to heat stress.
| Country | Projected Annual Working Days Lost Due to Extreme Heat (Agriculture & Construction) | Key Findings |
| Bangladesh | 19+ days | Among the highest heat-related productivity losses; large informal workforce at risk. |
| India | 19+ days | Agriculture and construction workers face severe income losses due to extreme heat. |
| Indonesia | 19+ days | High heat exposure expected to significantly reduce working hours. |
| Nigeria | 19+ days | Informal workers particularly vulnerable to prolonged heat stress. |
| Brazil | Around 7 days | Significant productivity losses, especially in northern regions. |
| South Africa | Around 1 day | Lower working-day losses but heat continues to impact productivity. |
| France | Around 1 day | Limited labour losses due to stronger worker protections, but economic costs remain high. |
| Italy | Around 1 day | Moderate labour impact; healthcare and productivity losses remain a concern. |
Source: Heat, Health and Increasing Cost of Living: A Call for Action, adelphi global, 2026.
The report notes that heat exposure forces workers to slow down, take longer breaks or stop working altogether. Recovery from heat-related illnesses can take days or even weeks, reducing productivity and directly affecting earnings, especially for workers who are paid on a daily wage or piece-rate basis.
Biggest financial hit
India's large informal workforce is expected to bear the brunt of these losses. Unlike workers in the formal sector, informal workers often lack paid leave, health insurance and social security benefits. As a result, every hour lost due to extreme heat translates into lost income.
The report says the combination of lost wages and limited social protection increases the likelihood that vulnerable households could slip below the poverty line as climate-related heat events become more frequent.
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It also highlights gender disparities, noting that women are disproportionately represented in informal and lower-paid occupations while also carrying greater unpaid caregiving responsibilities. These factors make them particularly vulnerable to the financial impacts of extreme heat.
Healthcare costs
Beyond income losses, the report warns that heat-related illnesses are likely to drive up household healthcare expenses.
Extreme heat can lead to dehydration, heat exhaustion, kidney disease, cardiovascular problems and heatstroke, often requiring medical treatment. In countries where households bear a significant share of healthcare costs, rising temperatures could translate into higher out-of-pocket spending, adding to financial stress.
The report describes this as a "double burden"—declining incomes coupled with rising living costs—which could significantly weaken household finances over time.
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Heat poverty
The report also points to the increasing cost of adapting to hotter temperatures. Air conditioners remain the most effective way to cool homes, but their purchase, installation and electricity costs remain unaffordable for many low-income households.
It notes that this growing financial burden is increasingly being referred to as "heat poverty" in India, where families struggle to afford adequate cooling even as temperatures continue to rise. Research cited in the report suggests that air-conditioning can increase household electricity consumption by around 36 per cent, while poorer households may spend as much as 8 per cent of their total expenditure on electricity for cooling.
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Policy action
The authors argue that addressing the economic impacts of extreme heat requires coordinated action across climate, labour and health policies.
Among the recommendations are expanding social protection for heat-affected workers, strengthening public healthcare systems, improving access to climate adaptation finance, integrating heat-related risks into labour regulations and developing comprehensive heat-health action plans under national climate strategies.
The report also calls for better data on the economic costs of heat, including its impact on productivity, household incomes and healthcare spending, to help governments design more targeted interventions.
With climate change expected to increase the frequency and intensity of heatwaves over the coming decades, the report concludes that protecting workers' health and livelihoods must become a policy priority. Without timely adaptation measures, extreme heat could increasingly erode incomes, raise living costs and widen economic inequality in countries like India.
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