Frozen wages, soaring prices

Karnataka workers face rising living costs as wage revisions stall amidst soaring inflation and government inaction, impacting livelihoods.

Sharath S. Srivatsa

Mahadevappa A., a casual worker at a factory in Jigani, was elated when in April 2025, he was informed of an impending hike in his salary after the government notified increase in minimum wages across sectors of employment.

Nearly a year later, his mood, and that of thousands of workers like him, is no longer upbeat. The notification proposing the hike has remained a draft, with the government dithering on finalising the wage hike.

In his late 30s and a native of T. Narasipura in Mysuru district, Mahadevappa has been working as a casual worker for nearly two decades now. His current gross salary is about ₹15,300 per month, and he had his hopes pinned on the hike to cope with escalating cost of living. “The rent is high and add to it the high school fee. Cost of every food item has gone up too. How do you expect a family to lead a decent life with what we earn?” he asked. He and many of his colleagues have been taking up overtime jobs to earn additional income, but at the cost of social life. His spouse also takes up odd jobs to augment the family income.

For more than three years now, over 1.77 crore workers like Mahadevappa, covered by the Minimum Wages Act, 1948, are desperately waiting for a revision. Though the Act mandates revision of wages at least once in five years, this cycle of revision — due in 2022-23 — has not been completed yet. It has been nine years since the last wage revision process was completed in 2016-17.

Bringing hopes in desperate times, the State government on April 11, 2025 proposed fresh minimum wages ranging from ₹25,714 per month for unskilled worker to ₹34,225 per month in Zone 1, which includes Bengaluru; to ₹19,319 per month for unskilled worker to ₹28,285 per month for highly skilled worker in Zone 3. The draft, for the first time, fixed minimum wages for 18 scheduled employments apart from revising minimum wages in the rest. Minimum wages have been notified in a total of 81 scheduled employment.