The Karnataka government, led by Chief Minister Siddaramaiah, has raised minimum wages for workers by an average of 60%, benefiting more than one crore laborers in the state. This move makes Karnataka the third state, after Uttar Pradesh and Haryana, to implement such a significant wage hike. The revision aligns with Supreme Court guidelines from the 1991 Reptakos Brett case, considering household spending patterns and rising living expenses.
Labour Minister Santosh S. Lad highlighted that the revised minimum wage system will bring substantial relief to workers statewide. Many workers were previously left with minimal take-home pay after deductions for ESI and PF, some even falling below the poverty line. This wage increase aims to enhance the lives of laborers contributing to the nation’s development.
Extensive consultations with labor unions, employers, experts, and legal professionals preceded the finalization of the notification. The revised wage structure, introduced by the Labor Department, focuses on providing financial assistance to workers in unorganized and specified sectors. The government has restructured the earlier four-zone classification into a three-zone system for wage computation, covering over 81 scheduled employment sectors in Karnataka.
The wage revision encompasses workers in private schools, colleges, e-commerce firms, courier services, and religious institutions. This adjustment addresses long-standing demands from labor unions and worker organizations, urging the government to update minimum wages due to escalating living costs and inflation. The last significant revision occurred almost a decade ago in 2016–17.
Under the new structure, minimum wages for unskilled workers in Zone 3 have risen to Rs 19,300, while highly skilled workers in Zone 1 can now earn up to Rs 31,100. Additionally, a Variable Dearness Allowance (VDA) of Rs 1,030 has been merged into the minimum wage calculation for two years. The state has been divided into three zones for wage determination: Zone 1 includes Greater Bengaluru, Zone 2 comprises district headquarters, and Zone 3 covers all other areas.
