The notification of four labour codes by the Centre on Friday has led to confusion over the revision of minimum wages in Karnataka, with contrary views emerging.
The revision, which could benefit about 1.8 crore employees across 81 scheduled employment, is already overdue by more than three years and the notificaiton of codes might further delay or even stymie it.
What is replaced
The Code on Social Security, 2020; Industrial Relations Code, 2020; Occupation Health, Safety and Working Conditions Code, 2020, and Code on Wages, 2019 will replace 29 pieces of labour legislation in the country. The code on wages replaces the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.
The revision of minimum wages in Karnataka, last notified in 2017-2018, is overdue since revision has to be done once in at least five years.
The draft issued in April, 2025, for revision of minimum wages, had proposed wages in the range of ₹ 19,319 for unskilled worker to about ₹31,000 for highly skilled worker.
The Labour Department, after collecting data on price rise, had arrived at it based on the formula laid down by the Supreme Court in the Raptakos Brett and Co. case. Multiple cases had reached the Karnataka High Court as employers had opposed the hike, calling it “steep”.
Labour Minister Santosh Lad, speaking to The Hindu, insisted that the new labour ode wouill not affect the ongoing consultation of minimum wages, since the rules under the Code also have similar provisions. He also said that Centre cannot impose uniform wages across the country and states should have their leeway.
What unions say
Centre for Indian Trade Unions (CITU) Karnataka general secretary Meenakshi Sundaram said that since the draft minimum wages was notified in April and the codes came in November, the wages can be implemented retrospectively. “The State government should not have delayed implementation even after completion of deliberations,” he said, adding that Labour is a subject in the concurrent list.
Responding to the delay, Mr. Lad said, “The issue received many objections. Currently, the matter is being reviewed at the Government level and a decision will be made soon.”
All India Trade Union Centre (AITUC) Karnataka Secretary M. Sathyanand drew attention to other areas of possible confusion. He said that the Code does not have provision of scheduled employments, and the State’s draft notification in April, 2025, had revised minimum wage for 81 scheduled employment. “This causes confusion as the process of revision is almost completed. We urge the government to finalise the draft notification with retrospective effect,” he added.
Further, Mr. Sathyanand pointed out that the Code on Wages caps the house rent allowance at 10 % of the cost of food and clothing, which roughly translates to about ₹ 1,000 to ₹ 1,200 per month of rent in a city like Bengaluru. “This is illogical. This is also a major violation of guidelines laid down by the Supreme Court.”
Earlier, in 2022, another set of notification to implement minimum wages that had defied Supreme Court guidelines, had been stalled by the Karnataka High Court, which then had asked the State government to recalculate the minimum wages following which the draft was published in April, 2025.
Employers’ view
Taking a contrary view, B.C. Prabhakar, President of Karnataka Employers Association said, “Under the Code, the State government cannot fix minimum wages, and the onus will be on the Centre. Existing wages will prevail in States if national minimum wages fixed is less than what has already been decided at the State level,” he said.
He argued that the fresh minimum wages to be notified by the Centre could take some time and it could also be challenging given the vast diversity of the country. “The State government will also have to make rules to implement the minimum wages along with the Centre,” he said.
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Published – November 22, 2025 09:04 pm IST
