The Karnataka government is set to reconsider the recently revised minimum wages for 84 scheduled employment categories amid pushback from industry groups. This decision comes just over a month after the new wage structure was officially notified, igniting concerns about its potential impact on businesses in state.
A preliminary meeting involving officials from the Finance,Commerce and Industries,and Labour departments has already taken place. The Cabinet is expected to discuss legal implications and consequences of the wage revision before making any final decisions . Labour Department is currently drafting a Cabinet note to facilitate this discussion .
The newly proposed monthly minimum wages range from ₹19,300 for unskilled workers in Zone 3 to ₹31,114 for highly skilled workers in Zone 1 . This revision,which was last updated in 2016-17,represents an approximately 40% increase and aims to provide relief to over one crore households grappling with rising living costs in Karnataka. Trade unions have largely welcomed the increase, viewing it as a necessary adjustment .
However, industry bodies have voiced strong objections,arguing that the hike is excessive and could lead to capital flight from the state. Ongoing petitions challenging the notification are being heard by the Karnataka High Court, although the court has not issued a stay on the new wage structure .
Sources within the Labour Department have indicated that notification's legality is being questioned,particularly regarding whether it was issued without proper Cabinet approval. department maintains that revision followed a process involving the independent Minimum Wages Committee, which raises questions about the necessity of Cabinet involvement. This situation has created grey area in the legal framework surrounding the wage notification.
Speculation about the potential review of these wages has circulated for weeks,and while revised rates have been implemented by state-run boards and corporations,many private sector industries have yet to adopt them. Unions have claimed that several industries are expected to comply by July.
M. Satyanand, secretary of All India Trade Union Congress,emphasized that the wage revision process was comprehensive and included consultations with all relevant stakeholders. He noted that the rates were determined based on an analysis of price increases in essential goods across 16 locations in state, adhering to guidelines set by the Supreme Court in the Raptakos Brett case.
“Any move to review or withdraw the final notification will be blatantly illegal as per an earlier High Court division bench order. We will take to the streets if the hard-fought benefits are affected,”Satyanand warned,underscoring the potential for unrest should the government proceed with changes to the wage structure.
As the Cabinet prepares to revisit the issue,the outcome remains uncertain, with both industry and labor groups closely monitoring developments. The stakes are high,as decision will not only affect workers’ livelihoods but also the economic landscape of Karnataka.
