Karnataka Cabinet Forms Panel to Review Revised Minimum Wages

The Karnataka Cabinet has decided to form a sub-committee to study the recently revised minimum wages. Deputy Chief Minister G. Parameshwara will head the committee, which aims to address concerns raised by industries regarding the wage increase.

The revision of minimum wages, initially notified in May, had received support from trade unions. However, industry representatives opposed the changes, citing a steep increase and expressing fears of capital moving to neighboring states. The sub-committee will review the revised wages and present a report to the Cabinet for further discussion and decision.

Until a final decision is made, the current minimum wage rates will remain in effect, as the revised wages have not yet been implemented. The committee is expected to include Labour Minister Santosh Lad and Industries Minister M.B. Patil. The Finance Department had previously flagged concerns about the higher expenditure associated with the revised minimum wages.

The government is reportedly seeking a review of the wages and had inquired with the Labour Department about the justification for notifying the revised wages without prior Cabinet approval. The State Minimum Wages Advisory Board, comprising representatives from workers, industry, and government, had discussed the revised wages.