How Will Karnataka's Revised Minimum Wages Impact Your Industry in 2018-19?

Karnataka State revised the majority of scheduled industries' minimum wages. There are 37 scheduled industries affected as of 30.12.2017.

Enclosed, please find a write-up on a few industries with the minimum wage effective from 1st April 2018 to March 2019. This information may be useful for those in need.

Gazette Notification of Revised Minimum Wages

Attaching the Gazette notification of revised minimum wages effective from 30th Dec '17. In addition to the basic wages, a DA of INR 367 is payable for the period from 30th Dec '17 to 31st Mar '18.

DA Annual Revision

The DA annual revision from 1st April 2018 to 31st Mar '19 would be another INR 316, totaling the DA at INR 683 apart from the basic wages defined in the notification. Also, there is a service weightage of 1% on the basic wages for employees who have completed 10 years in the organization, with a maximum cap of 10% only.

Regards, Ram.

Sir, what are the basic wages for Construction Workmen (Highly Skilled, Skilled, Semi-Skilled, and Unskilled) in Zone-II, Bangalore. How can we determine which zone we belong to?

Thank you.

Thank you, Ram Navrathnaji, for providing the information on M.W. in Karnataka.

Normally, the M.W. is revised annually twice; once from 1st April and the second time from 1st Oct. of every year. The first sentence states that the Karnataka State revised the MW from 30.12.2017, and the second paragraph mentions MW being effective from 1.4.2018. However, the effective date of the MW revision is not clear. I would appreciate your comments on this matter.

With kind regards,

C. Neyim Khan
HR Consultant, Hospet
5.4.2018
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Dear Seniors,

Could anyone please provide information on the Karnataka Minimum Wages for the year 2018-19 in the Food Processing and Manufacturing of Plastic Articles industries? This would be greatly appreciated.

Thank you in advance for your assistance.

Regards,
Veeresh

Hi CS Verma,

Regarding the construction or maintenance of roads and building operations in Zone II, the salary details are as follows: Engineering graduates - 22,700/-, Diploma engineering employees - 17,550, Highly skilled - 10,790 (Basic) and 1,591.20 (DA), Skilled - 10,270 (Basic) and 1,591.20 (DA), Semi-skilled - 10,010 (Basic) and 1,591.20 (DA), and Unskilled - 9,750 (Basic) and 1,591.20 (DA).

Apart from the above categories, separate basic pay + DA is applicable for drivers, cleaners, office staff, security guards, etc., as per this schedule.

Feel free to call or revert for any assistance.

Thank you.

Hi CS Verma,

In the notification, only details of the zone are provided. Zone 1 - BBMP (Bruhat Bengaluru Mahanagara Palike) notified area, Zone 2 - Zone coming under corporations (Mahanagar Palike), other than Bruhat Bengaluru Mahanagara Palike (Belgaum, Hubli-Dharwad, Mangalore, etc.) Zone 3 - Other district places, other than zone 1 and zone 2 district place, Zone 4 - All places, other than Zone 1, 2, 3.

Hi Neyim,

In Karnataka, minimum wages are revised once a year. This year, the Government of Karnataka changed the basics of some of the schedules, including Shop & Establishment, which is effective from 30th December 2017. As per the notification, companies need to pay the revised Basic + DA. Additionally, in April, they amended the DA, which is effective from April 2018.

Thank you.

Sorry if this has already been addressed. What is the minimum wage for the BPO and IT sectors?

Hi ANONYMOUS,

In Karnataka, there is no separate schedule of employment under IT/BPO. Hence, most of the organizations follow Shops & Establishment minimum wages.

Hi Neyim Khan,

Minimum wages in Karnataka are revised every April based on the CPI points. However, in 2017, they revised the Basic salary and DA (Rs.367) as it had been more than 5 years since such a revision had occurred. Additional DA from Apr'18 to Mar'19 is Rs.317, making the total DA Rs.683.

Hope I clarified.

Regards,
Ram.

Dear Amith,

You have not furnished valid reasons for non-implementation. I presume that it is not for bonafide reasons. You are liable to pay the difference in minimum wages. Additionally, the authority under the Minimum Wages Act can impose a penalty of 10 times the short payment. Consequently, please implement the applicable minimum wages from the date notified.

Dear Seniors,

Can anyone please provide Karnataka Minimum wages-2018-19 for the Hospitality/Hotel Industry? This will help me a lot...

Thanks & regards,
Anand

Hi,

Greetings. Can anybody provide me with the minimum wages for the distillery industry in Karnataka? I am looking forward to your reply.

Hi KVK,

Below mentioned are the details of Zones:

Zone 1 - BBMP (Bruhat Bengaluru Mahanagara Palike) notified area.

Zone 2 - Zones coming under corporations (Mahanagar Palike), other than Bruhat Bengaluru Mahanagara Palike (Belgaum, Hubli-Dharwad, Mangalore, etc.).

Zone 3 - Other district places, other than zone 1 & zone 2 district places.

Zone 4 - All places, other than Zone 1, 2, 3.

Hi Sirs/Madam,

I want to know more about the calculation, for example, on the Service Seniority Allowance, which is calculated at 1% of the Minimum Basic Wages.

Thanks!
Ratnesh

Schools fall under various industries, and I would like to know the monthly wage (MW) of private schools in Karnataka (Zone-II) for office staff such as clerks and administrators.

Can anybody help me with the minimum wage for the Automobile Engineering industry for 2018-19 for the state of Karnataka.

I am checking the minimum wages for the engineering industry in Karnataka state. However, I am confused about the various rates in each category under different Zones. What is the significance of these Zones (I, II, III, IV, etc.)?

Hi,

Could anyone share the minimum wages (2018-2019) for the hotel industry?

PFA details of MW payable for Automobile Workshop in Karnataka for 2018-19.

N. Nataraajhan, Sakthi Management Services
(Hp: +91 94835 17402; Email: natraj@sakthimanagement.com)

Hi,

Can anyone share the minimum wages for the 2018-19 period in the Spinning Mill industry?

Can anybody help me with the minimum wage for RCC block manufacturing industry for 2018-19 for the state of Karnataka.

Hi, this is regarding the recent amendment in the MW Act and Rules in Karnataka state.

What are the implications if we pay old (in practice as on 1st Dec 2017 for S&E industry) "Basic Wages & DA", however the monthly total salary is compliant as per the revised rates notified as on 30th December 2017?

Regards,
DL Naidu

Dear Mr. Ram,

Thank you for the information. I just need one more help. I am searching for the minimum wages for the following industries in Karnataka:

1) Hand loom & Power loom industries
2) Spinning mills industries
3) Tailoring industries
4) Textile (Silk) Industries

I searched on the website of the Karnataka Labour Welfare Department, but it is available in Kannada language. Could you please help me in getting the same information in English?

Please do the needful if you can.

Thanks & Regards,
Chaitanya

Minimum Wage Clarification

I would like to know:

1. If minimum wage means "minimum basic" (we do not have DA as part of our structure) or "minimum gross" (gross in our organization structure includes Basic, HRA, Conveyance, Special Allowance, and Statutory Bonus).

2. If we go by "Shops and Establishment" minimum wage for Karnataka, it is 15,423.4 per month (which is quite higher compared to Rs 9,836.97 for Haryana and Rs 9,364 for Maharashtra). Does it mean any employee in the IT Industry in Bangalore, even at the entry level, has to be paid a minimum of 15,423.4, which is just the basic (if minimum wage means minimum basic)? Adding to that other components and PF, the Annual CTC reaches more than 3 LPA!

Regards,
NM

I would like to know the latest (2018-2019) minimum wages for a food manufacturing company in Hoskote, Karnataka.

Karnataka Service Seniority Allowance Calculation

For Karnataka Service Seniority Allowance, suppose the basic pay is Rs. 25,000, but the minimum wages under Shops & Commercial Establishment for High Skilled (Zone 1) is Rs. 16,106 (Basic + VDA). In this scenario, the SSA would be calculated on which basic pay? Will this need to be paid every month?

Clarification on Minimum Wage Components

I am also looking forward to answers/views on the following details:

Hi Members, I would like to know:

1. If minimum wage means "minimum basic" (we do not have DA as part of our structure) or "minimum gross" (gross in our org structure includes Basic, HRA, Conveyance, Special Allowance, and Statutory Bonus).
2. If we go by "Shops and Establishment" minimum wage for Karnataka, which is Rs. 15,423.4 per month (which is quite higher compared to Rs. 9,836.97 for Haryana and Rs. 9,364 for Maharashtra), does it mean any employee in the IT Industry in Bangalore, even at entry level, has to be paid a minimum of Rs. 15,423.4, which is just the basic (if minimum wage means minimum basic)? Adding to that other components and PF, the Annual CTC reaches more than 3 LPA!

Thanks,

Aj

Dear AJ,

The basic salary of Rs25,000/- per month is above the prescribed minimum wages. Consequently, service weightage allowance is not applicable in this particular case. Statutory Bonus (The Payment of Bonus Act, 1965) cannot be a part of the monthly gross salary. Please do not compare the minimum wages notification enacted by respective State Governments, which is applicable for scheduled establishments situated in the respective state.

The employer's share of PF cannot be a part of the monthly gross salary.

Thank you, Mr. Srinath, what will be the consequences if the Earned Basic is Rs. 15,000 under the Karnataka Shops & Commercial Establishment Act? How is the Service Weightage allowance calculated? It would be a great help if the following details can be addressed:

If we consider the "Shops and Establishment" minimum wage for Karnataka, which is Rs. 15,423.4 per month (significantly higher than Rs. 9,836.97 for Haryana and Rs. 9,364 for Maharashtra), does this mean that any employee in the IT industry in Bangalore, even at an entry level, has to be paid a minimum of Rs. 15,423.4?

Thanks again.