Karnataka Final Minimum Wages Notification dated 22 May 2026: Key Compliance Update for Employers

The Government of Karnataka has issued the Final Minimum Wages Notification dated 22.05.2026, revising the minimum wages applicable to various scheduled employments across the state. This is a significant development for employers, as the notification covers 65 existing scheduled employments and also includes 18 newly added scheduled employments.

Background

Earlier, Karnataka had revised minimum wages for certain scheduled employments through notifications dated 30.11.2022. These notifications were challenged before the Hon’ble High Court of Karnataka on the ground that the wage fixation principles laid down in the REPTAKOS BRETT case were allegedly not properly followed.

Thereafter, the government issued a preliminary notification dated 11.04.2025, proposing revised and uniform minimum wages for existing as well as newly added scheduled employments. Objections were invited from stakeholders, and several employers and employers’ associations submitted their objections.

However, as per the legal circular, the final notification dated 22.05.2026 appears to be more or less similar to the preliminary notification, indicating that the objections may not have resulted in major changes in the final wage revision.

Key Highlights

The final notification revises minimum wages across several industries and employments in Karnataka. One of the important changes relates to zone classification. The circular notes that areas earlier falling under BBMP have now been replaced by areas covered under the Greater Bengaluru Authority.

This may result in several establishments being shifted to a higher wage zone, especially those that were earlier falling under lower zones. Consequently, employers may face a substantial increase in wage liability.

The circular further indicates that the wage revision may result in an increase of around 60% in certain cases, making this a major payroll and compliance impact item for Karnataka-based establishments.

Objections by Employers

The preliminary notification had invited objections from stakeholders. Several employers and employers’ associations submitted their objections, including objections against the proposal to fix uniform minimum wages irrespective of industry.

However, the circular does not specifically state that objections were formally rejected. It only records that the final notification is more or less the same as the preliminary notification. Therefore, it may be understood that the objections did not materially change the final notification, though no express rejection language is mentioned.

Code on Wages Reference

An important legal issue highlighted in the circular is that the final notification refers to powers under the Minimum Wages Act, 1948, although the said Act has been repealed after the implementation of the Code on Wages, 2019.

The circular refers to Section 69 of the Code on Wages, 2019, which deals with repeal and savings of earlier wage laws. Under such savings provisions, earlier actions, notifications, or orders may continue to remain valid to the extent they are not inconsistent with the Code, unless replaced or repealed under corresponding provisions.

However, the document does not specifically mention any national floor wage. Therefore, employers should not assume any direct linkage between the revised Karnataka minimum wages and the National Floor Wage based on this circular alone.

Employer Impact

This notification may have a wide impact on payroll and statutory compliance. Employers should review the revised rates not only for minimum wage compliance but also for related cost implications such as

1. Basic wage and gross salary alignment

2. Overtime calculation

3. Leave encashment

4. PF and ESIC wage impact, wherever applicable

5. Bonus and gratuity provisioning

6. Contractor wage compliance

7. Costing for manpower supply and service contracts

8. Payroll budgeting for Karnataka locations

Employers having operations in Bengaluru and surrounding areas should pay special attention to the revised zone classification under the Greater Bengaluru Authority.

Compliance Action Points

Employers should immediately undertake a structured review of:

• Applicable scheduled employment

• Correct zone classification

• Category of worker: unskilled, semi-skilled, skilled and highly skilled

• Existing wage structure against revised minimum wages

• Impact on contractors and outsourced manpower

• Payroll revision requirement

• Internal approvals and employee communication

• Legal position in view of pending or possible litigation

Labourcodes360 View

The Karnataka Final Minimum Wages Notification dated 22.05.2026 is a major compliance development and may substantially increase wage costs for many employers. Since the circular also highlights legal and procedural concerns, employers should take a cautious and documented approach.

Before implementing changes, employers should verify the applicable schedule, zone, employee category, and wage rate. In case of large establishments or contractor-heavy operations, a detailed wage impact analysis is strongly recommended.

Conclusion

The Karnataka government's final minimum wages notification is an important update for all employers operating in the state. While the notification revises wages for existing and newly added scheduled employments, it also raises practical questions regarding zone classification, cost impact, objections submitted by employers, and the transition from the Minimum Wages Act to the Code on Wages.

Employers should review the notification carefully and ensure timely compliance after proper legal and payroll assessment.