A year later, Karnataka govt yet to issue final notification on minimum wages

Bengaluru: More than a year after issuing a draft notification on increasing minimum wages for workers across skill levels and zones, and multiple consultations, the labour department is yet to take a final call on the issue.

The state government’s draft is based on the landmark Supreme Court judgment in the Reptakos Brett case, which mandates fixation of minimum wages based on the cost of food, clothing, shelter, education and medicinal needs. 

However, the union government’s new code on wages rules that were published on May 8 neither refers to the Reptakos Brett case nor provides any alternative criteria to fix minimum wages. 

According to sources, the final notification will be issued after obtaining legal opinion on the legal aspects of whether labour code rules have any bearing on the draft notification. 

Labour Minister Santosh Lad told DH that the department would issue the final notification within two weeks as per the criteria outlined in the draft notification.

Months ago, the joint committee of trade unions had urged the labour department to proceed with its minimum wage proposal by arguing that there was no "legal obstacle" to proceed with its earlier notification.

It had referred to section 69 (repeal and savings) of the wage code, which explains that any notification, nomination, appointment and so on that are “not contrary” to the provisions of the code “shall be in force.”

As per the draft, workers are divided into four skill levels (highly skilled, skilled, semi-skilled and unskilled) in three zones (zone 1 - Bengaluru and districts with municipal corporations, zone 2 - other districts and zone 3 - taluk centres).

It proposes a minimum wage of Rs 23,276 for unskilled workers in zone 1, Rs 21,251 for unskilled workers in zone 2 and Rs 19,319 for unskilled workers in zone 3. 

While labour unions have expressed “in-principle” agreement with the draft, they have suggested that food, clothing and shelter expenses should comprise 55%, and that children’s education (25%) and miscellaneous costs (20%) should make up the remaining 45% of the minimum wage.

According to sources, the basis for fixing the minimum wages will be as crucial as the final amount.

If the criteria based on which the minimum wage is calculated are not properly explained in the notification, it may not stand legal scrutiny, a source added.