Minimum Wages in Karnataka Raised to ₹19,319.36 for Unskilled Workers

 

In a move expected to benefit nearly two crore workers in scheduled employment, the Karnataka government has released a draft notification significantly increasing minimum wages. The proposed wages now range from ₹19,319.36 per month for unskilled workers in Zone 3 to ₹34,225.42 for highly skilled workers in thermal power stations.

For Zone 1 industries, the new minimum wage for highly skilled employees is proposed at ₹31,114.02.

This wage hike — nearly 70% over the existing wages — includes revised variable dearness allowance (VDA) and is intended to improve living standards for lakhs of families.

Key Highlights:

• Coverage: Estimated 2 crore workers across 100 scheduled employment sectors, including 18 newly added sectors.
• Wage Zones: The notification brings the state back to a three-zone system (from the earlier four-zone classification). This change aims to remove anomalies created during the 2022 revision under the BJP government.
  • Zone 1 covers BBMP areas and major cities.
  • Zone 2 covers district HQs and municipal corporations.
  • Zone 3 includes the rest of the state.

The earlier revision in 2022 had only provided a marginal 5%–10% increase across 34 employments, which many found inadequate. The new draft nullifies the 2022 hike and proposes fresh rates.

The final notification will only be issued after the draft undergoes a public objection period, followed by review by the Minimum Wages Advisory Board, which includes representatives of employers, employees, and the government. The entire process is expected to take at least three months.

 

Extension to Religious Institutions

For the first time, minimum wages will also apply to staff working in religious institutions like temples, churches, mosques, mutts, gurudwaras, maths, ISKCON, Arya Samaj, and others. These cover non-teaching staff in religious-run schools, colleges, and media outlets. E-commerce and delivery personnel have also been included.

 

 

Opposition Expected

However, industry bodies have raised concerns.
B.C. Prabhakar, President of the Karnataka Employers' Association, stated that this hike is unusually high and may lead to:

• Increased production costs
• Possible job losses
• States like Karnataka becoming less competitive compared to others like Telangana and Delhi, where wages are lower

He called the move “labour-unfriendly” and warned that large-scale industries may shift away from Karnataka if the proposed wages are implemented.