Karnataka govt hikes minimum wages by 60 per cent; over 1 crore workers to benefit

Karnataka has become the third state in the country to issue such a revised minimum wage notification after Uttar Pradesh and Haryana

Bengaluru: The Chief Minister Siddaramaiah-led Karnataka government has issued a notification on Saturday increasing minimum wages for workers by an average of 60 per cent, a move expected to benefit more than one crore labourers across the state.

With the latest notification, Karnataka has become the third state in the country to issue such a revised minimum wage notification after Uttar Pradesh and Haryana.

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Officials stated that the revision has been implemented in line with the Supreme Court guidelines laid down in the 1991 Reptakos Brett case, taking into account household expenditure patterns and rising living costs.

Labour Minister Santosh S. Lad said the revised minimum wage system would significantly benefit workers across the state. “After deductions towards ESI and PF, many workers were left with very little take-home salary. Some had even fallen outside the BPL category. This wage revision will provide major relief to such workers. It is a revolutionary step aimed at improving the lives of labourers who contribute to nation-building,” he said.

The minister said extensive consultations had been held with labour unions, employers, experts, and legal professionals before finalising the notification.

The revised wage structure, announced through the Labour Department, is aimed at providing financial relief to workers employed in the unorganised and specified sectors.

The revision has been carried out in accordance with directions issued by the Supreme Court.

For the first time, all scheduled employments have been brought under a single notification.

The government has also revised the earlier four-zone classification system into a three-zone structure for wage calculation.

According to the notification, workers across more than 81 scheduled employment sectors in Karnataka will benefit from the wage revision.

Employees working in private schools and colleges, e-commerce companies, courier services, and religious institutions have also been included under the revised wage framework.

The revision comes after long-standing demands from labour unions and worker organisations, which had been urging the government to update minimum wages in view of rising living costs and inflation.

The last major revision was implemented during 2016–17, nearly a decade ago.

The draft notification for the revised wages had been issued on April 11 last year.

While labour organisations had welcomed the move, several industries, particularly those in the MSME sector, had expressed concerns over the proposed hike.

Under the revised structure, minimum wages for unskilled workers in Zone 3 have been increased to Rs 19,300, while highly skilled workers in Zone 1 will now receive up to Rs 31,100.

The government has also merged a Variable Dearness Allowance (VDA) of Rs 1,030 for two years into the minimum wage calculation.

For wage determination, the state has been divided into three zones.

The Greater Bengaluru region falls under Zone 1, district headquarters under Zone 2, and all remaining areas under Zone 3.