Karnataka HC issues notice to state govt over petition challenging increase in minimum wages

Bengaluru: The Karnataka High Court on Tuesday issued notice to the state government over a petition challenging the increasing of minimum wages.

Justice Jyoti M adjourned the matter for June 9 to consider the prayer seeking interim stay of the notification.

The petition is filed by the Karnataka Employers Association and Ethereal Machines Private Limited, Bengaluru. The May 22 notification enumerates 81 different scheduled employments for which the rates of minimum wages have been revised.

The proposed rates mandate an increase of up to 60 per cent, which the petitioners claimed as arbitrary, economically ruinous and in violation of the right to carry on business guaranteed under Article 19(1)(g) of the constitution.

According to the petitioners, any quinquennial revision of minimum wages ought to be reasonable and measured, restricted to an increase of 10 to 15 per cent as consistently done in the past.

The notification has invoked sections 3(1)(b) and section 5(1)(b) of the Minimum Wages Act. The petitioners contended that the Minimum Wages Act stood officially repealed upon the enforcement of the Code on Wages, 2019, with effect from November 21, 2025.

A combined reading of section 69 of the Code on Wages with section 6 of the General Clauses Act, demonstrates that the concept of 'Scheduled Employment', having been repealed under the Code on Wages, cannot be legally sustained or given continued effect, the petition said.

Further, the petition stated that the state government’s notification is in direct violation of the operational interim orders passed by the high court in several petitions.

In these interim orders, the high court had directed the state government not to issue or implement any final notification after the meeting of the Minimum Wages Advisory Board without seeking prior leave of the court, the petition said.

“The Statutory Authority has acted arbitrarily, capriciously and hurriedly in issuing the impugned notification, without realising the severe economic repercussions on industrial establishments. These establishments are now forced to bear an unsustainable financial burden of a minimum wage hike exceeding 60 per cent unlawfully invoked under a repealed Act,” the petitions stated.