Karnataka notifies average 60% rise

Karnataka has notified a final draft of revised minimum wages that raises pay by an average 60% across 81 scheduled employments, according to The Hindu. The notified rates range from ₹19,300 a month for an unskilled worker in Zone 3 to ₹31,100 for a highly skilled worker in Zone 1, the report said. The move affects more than one crore workers in the state, after a wage revision process that had been pending for years. The follow-up issue is now whether workers who move above the current Employees’ State Insurance ceiling will lose coverage unless the Centre changes the threshold. ### What exactly did Karnataka notify? The May 22 notification is a final draft of minimum wages, not a single flat statewide rate. Karnataka fixes wages across scheduled employments and uses zone and skill classifications, so the notified figures differ by location and category of work. The Hindu reported that the average increase from current wages is about 60%. (thehindu.com) The new floor cited in the report is ₹19,300 a month for an unskilled worker in Zone 3. At the upper end of the range cited in the same report, a highly skilled worker in Zone 1 would get ₹31,100 a month. Those figures give the broad shape of the revision: the state has lifted the bottom and top ends of the wage structure at the same time. (thehindu.com) ### Who is covered by this revision? Karnataka’s revision covers 81 scheduled employments, The Hindu reported. That means the change is aimed at a large part of the formal wage-setting system under the state’s minimum wage framework, rather than one sector alone. (thehindu.com) The same report said the decision would bring relief to more than one crore workers. Earlier reporting by The Hindu said the state’s minimum wage revision had become overdue and had been tied up in discussions over labour codes, employer consultations and court proceedings. In July 2025, the state told the High Court that no further action would be taken on the proposed draft notifications unless discussions were held with industry representatives. (thehindu.com) ### Why did the ESI ceiling become part of the story immediately? Karnataka has asked the Centre to raise the ESI eligibility ceiling from ₹21,000 a month to ₹30,000 a month after notifying the revised wages, The Hindu reported. The reason is mechanical: if minimum wages rise above the present ceiling, workers who are currently covered could move out of the ESI net for medical benefits. (thehindu.com) The Hindu said the state made that push because a large part of the workforce now under ESI could breach the ₹21,000 threshold after the revision. Karnataka had flagged the same problem in earlier reporting on the draft wage increase, when it warned that many workers were set to cross the existing ceiling if the higher wages took effect. (thehindu.com) ### Why are the numbers different across zones and skill levels? Karnataka’s minimum wage system uses zone-based and skill-based classifications, so a worker’s notified minimum depends on both geography and job category. That is why the reported figures run from Zone 3 unskilled wages at ₹19,300 to Zone 1 highly skilled wages at ₹31,100, instead of one uniform statewide number. (thehindu.com) The state had earlier issued draft notifications for separate wage rates across scheduled industries under the Minimum Wages Act framework, according to reports on the revision process. That structure is what produces different wage bands across employments and classifications. (thehindu.com) ### What happens next? The next step is at the Centre on the ESI question. Karnataka has already urged the Union government to revise the eligibility ceiling to ₹30,000 a month, The Hindu reported, after the state’s wage notification published on May 22. Whether that request is accepted will determine how many workers remain inside the ESI system after the revised wage structure takes effect. (legal.economictimes.indiatimes.com) (thehindu.com)