After minimum wage revision, Karnataka pushes Centre for change in ESI ceiling

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The revision of minimum wages, mandated astatine  slightest  erstwhile  successful  5  years successful  the Minimum Wages Act 1948, was yet   done connected  Saturday.

The revision of minimum wages, mandated astatine slightest erstwhile successful 5 years successful the Minimum Wages Act 1948, was yet done connected Saturday. | Photo Credit: FILE PHOTO

With the revised minimum wages notified connected Saturday and with an mean hike of astir 60%, the Karnataka authorities is pushing the Centre to revise the ESI ceiling from the existent ₹21,000 a period to ₹30,000 a month.

This is due to the fact that a ample portion of the workforce, present covered nether the ESI facility, volition beryllium retired of the ESI screen for aesculapian benefits arsenic they would breach the ₹21,000 a period ceiling with the revised minimum wages.

“We person written to the Centre to revise the ceiling twice. We person besides written to the Members of Parliament to revise the ceiling,” Labour Minister Santhosh Lad told The Hindu. He said that the State authorities would prosecute the substance with the Centre.

The revision of minimum wages, mandated astatine slightest erstwhile successful 5 years successful the Minimum Wages Act 1948, was yet done connected Saturday. It had been hanging since 2022-2023 arsenic the unions had opposed the marginal summation of 5% to 10% notified past for 34 scheduled employments. The unions had demanded the wage calculation to beryllium done arsenic per the Supreme Court guidelines, and the Karnataka High Court had besides upheld the demand. As galore arsenic 4 cases had been filed successful the High Court against the caller draught that was notified successful April, 2025.

The State authorities had besides delayed notifying the last wages owing to the implementation of 4 concern code, and arguments had been made against the minimum wage revision citing the provisions successful Code of Wages. However, the unions had cited different provisions nether the aforesaid Code to bring unit connected the authorities to notify the wages.

Despite the Code connected Wages coming into effect successful November 2025, the last notification has been issued nether the Minimum Wages Act, 1948, arsenic the codification allows the completion of the erstwhile notifications done nether the Act. The last notification cites General Clauses Act, 1897, and Section 69 (2) of the Code connected Wages, 2019, to alteration it to notify the revised wages nether the Minimum Wages Act.

The All India Trade Union Congress (AITUC), which waged a ineligible conflict against the earlier notifications successful 2022-2023, welcomed the government’s decision. “The revision has been long-pending and includes respective affirmative and progressive measures specified arsenic the azygous communal notification crossed antithetic scheduled employments, inclusion of balanced fare for nutrient costs and peculiar information for the arduous quality of definite employments specified arsenic sanitation work, foundries and powerfulness plants,” said AITUC wide caput D.A. Vijaybhaskar.

Published - May 23, 2026 12:01 americium IST

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