Contractual DTC drivers want a daily wage of Rs 2,000 instead of the current Rs 862, along with medical and social-security benefits.
The union also wants an annual bonus, payment for government holidays and leave.
Transport Minister Pankaj Singh said medical facilities, leave compensation, additional kilometre payments and death assistance had already been approved.
The government distinguished between direct DTC employees and workers hired through private contractors.
The strike has left thousands of buses off the roads.
It is led by the DTC Karmachari Ekta Union, which claims that more than 10,000 drivers and conductors are taking part.
The union is demanding a daily wage of Rs 2,000, against the current Rs 862 a day.
Other demands include medical facilities, social-security benefits, an annual bonus, payment for government holidays and leave.
Thousands of buses remained parked at depots across the capital.
Services were reported to be hit in areas including Burari, Wazirpur, Nehru Place, Rajghat, Rani Khera, Ghumanhera and Sarita Vihar.
Long queues were seen at bus stops, and some e-rickshaw drivers were asking Rs 15 to Rs 20 for distances of two to two and a half kilometres.
Delhi Metro added train services during peak hours as more commuters switched to it.
Transport Minister Pankaj Singh said the administration had already approved certain benefits, including medical facilities, leave compensation, additional kilometre payments and death assistance.
The government distinguished between direct DTC employees and those hired through private contractors.
Union president Lalit Chaudhary said the drivers were not asking for anything unreasonable and that the protest would continue until the demands were met.
Reports differed on the day count, with one report calling Friday the fourth day of the strike and another saying it entered its fifth day on Saturday.
No emergency order to end the strike was reported in the accounts reviewed.
DTC low-floor bus, Delhi (representative image), Wikimedia Commons, CC BY 2.0
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