The Indian National Congress (INC) ruled Karnataka has hiked minimum wages by 60%, the state government announced this week, making it the third state in India—after Uttar Pradesh and Haryana—to issue such a revised minimum wage notification.
The new rates, notified for 81 scheduled employments, range from about ₹19,300 to ₹31,114 per month depending on location and skill level. In Bengaluru, unskilled workers will now earn at least ₹23,376 a month, while highly skilled workers will get ₹31,114.
The revision also merges a Variable Dearness Allowance of ₹1,030 into the minimum wage for two years, aiming to improve financial security for workers in both the organised and unorganised sectors.
Labour unions argue the wage hike will boost consumption by putting more money in workers’ pockets, especially in labor-intensive sectors.
In a media-statement, the AITUC, leading national trade union has said, ” Karnataka government's order has challenged the neo liberal argument that low wages and austerity automatically produce growth. Sustainable growth cannot be built on corporate tax concessions and cheap labour. An economy grows when wealth circulates among the
people, not when it is concentrated in the hands of a few corporations. This will help Karnataka to embark on a real growth model.”
“AITUC appreciates this progressive move as a welcome shift towards a welfare-oriented and demand-driven economic approach that recognises workers not as expendable costs but as creators of wealth and consumers who sustain the economy itself.”
“AITUC urges upon the Union Government and all State Governments to take the right and timely cue from the Karnataka government to revise minimum wages nationally, ensure
living wages indexed to inflation.”
– 28 May, 2026.
