Karnataka's Minimum Wages Act Update: How Will the New Penalty Hikes Affect You?

The Government of Karnataka has released the Minimum Wages (Karnataka Amendment) Act, 2017. As per the Amendment Act, the Karnataka Government has increased the penalties under Section 22 and Section 22A of The Minimum Wages Act, 1948.

1. Short title and commencement.
2. Amendment of section 20.
3. Amendment of section 22.
4. Amendment of section 22A.

Amendment of Section 20

In section 20 of the Minimum Wages Act, 1948 (Central Act XI of 1948), hereinafter referred to as the Principal Act:
(i) In sub-section (1), for the words "not below the rank of Labour Commissioner," the words "not below the rank of Assistant Labour Commissioner" shall be substituted.
(ii) In sub-section (4), for the words "fifty rupees," the words "one thousand rupees" shall be substituted.

Amendment of Section 22

In section 22 of the Principal Act, for the words "which may extend to five hundred rupees," the words "which shall not be less than five thousand rupees but which may extend to ten thousand rupees" shall be substituted.

Amendment of Section 22A

In section 22A of the Principal Act, for the words "five hundred rupees," the words "ten thousand rupees" shall be substituted.

Detailed Notification attached.

The Minimum Wages (Karnataka Amendment) Act, 2017 has introduced increased penalties under Section 22 and Section 22A of The Minimum Wages Act, 1948 in Karnataka. The amendments specifically focus on enhancing penalties to ensure compliance with minimum wage regulations. Employers in Karnataka need to be aware of these changes and adjust their practices accordingly to avoid penalties. It is crucial for businesses to review and update their payroll systems and processes to align with the revised penalty structure. Failure to comply with the updated regulations can result in significant financial implications for organizations.