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Karnataka Notifies 60% Average Rise in Minimum Wages

The government says the move aims to lift pay for more than one crore workers and will force a revision of the Employee State Insurance wage ceiling to keep those workers covered.

Overview

  • The state issued a final notification on Saturday raising minimum wages by about 60% on average for 81 scheduled employments, which the government says will benefit over one crore workers.
  • Revised monthly floors now run roughly from ₹19,300 in rural Zone 3 to about ₹31,100 for highly skilled workers in Greater Bengaluru and include a ₹1,030 Variable Dearness Allowance folded into pay.
  • Nineteen labour‑intensive or piece‑rate employments, including garment, beedi and plantation work, were excluded from this round and affect more than 10 lakh workers who will get separate committee reviews.
  • The notification was issued under the Minimum Wages Act, 1948 using transitional clauses from the Code on Wages, 2019, and employers have signalled they are likely to challenge the order in court.
  • Karnataka has asked the Centre to raise the ESI monthly wage ceiling from ₹21,000 to ₹30,000 because many workers will exceed the current limit and losing coverage could affect access to medical benefits and firms’ payroll costs.