We get it! Keeping up with the payroll laws isn’t the most exciting part of running a business. But ignoring them can cost you big time. The Minimum Wages Act in Karnataka is one of those laws that every employer in the state jurisdiction must comply with. This is not just about avoiding the legal penalties but also ensuring fair pay to your employees and maintaining the business legally sound.
If you feel lost trying to navigate the Karnataka minimum wages, we assure you that you are not alone. In this blog, we will answer the question ‘What is Minimum Wages Act?’ and walk you through the steps you must take, as an employer, to stay compliant.
The Minimum Wages Act, 1948, is a central law that empowers both the central and state governments to determine and set different minimum wages for various employment categories. The simple objective of this Act is to prevent the exploitation of workers and ensure fair compensation for their labour.
As each state government has the power to set its own minimum wages, Minimum Wages Act in Karnataka may be different from all the other states. Guidelines around this act are periodically revised to accommodate factors like inflation, cost of living, and industry demands. Karnataka, as a major hub for industries, IT companies, and manufacturing sector, has a clear and well-defined structure for minimum wages across all sectors in different zones.
The Karnataka government periodically revises the minimum wages based on the recommendations it gets from various committees and labour department assessments. Some key factors that act as contributors to the decision-making include:
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As per the new Karnataka Minimum Wages, effective from 1st April 2024, the state has defined its minimum wages zone-wise. Here are the different zones:
The minimum wages set by the government of Karnataka consists of two components:
Also, these wages are different for different workers (skilled, semi-skilled, and unskilled workers), and they vary across various industries (IT, textiles, retail, manufacturing, hospitality, etc).
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Staying compliant with the Minimum Wages Act in Karnataka is of paramount importance to businesses in Karnataka. This is more than a mere legal obligation; it shows your dedication towards fair payment for labour and motivates your workforce.
