Overview
- Karnataka notified the revised minimum wages on Saturday, raising rates across 81 scheduled employments by an average of about 60 percent with bands from ₹19,300 to ₹31,100.
- The state divided Karnataka into three zones for pay calculation with Greater Bengaluru as Zone 1, district headquarters as Zone 2, and the rest as Zone 3.
- A two-year Variable Dearness Allowance of ₹1,030 has been merged into base pay to boost take-home income after deductions for ESI and provident fund.
- Labour minister Santosh Lad said the hike will push many workers above the current Employees’ State Insurance (ESI) ceiling of ₹21,000, and Karnataka has formally asked the Centre to raise the limit to around ₹30,000 to keep those workers covered.
- The revision follows Supreme Court guidance on household expenditure and was completed under the Minimum Wages Act after legal challenges; unions welcomed the move while industry and MSMEs warned of higher costs and possible strain on hiring and competitiveness.