Karnataka High Court Issues Notice On Plea By Employers' Association Against State Govt's Minimum Wage Hike Notification

The Karnataka High Court on Tuesday (June 2) issued notice on a plea challenging State government's May 22 notification proposing minimum wage hike for 81 scheduled employments.

The single judge bench of Justice Jyothi M was hearing a writ petition filed by the Karnataka Employers' Association (KEA) and another entity, which contends that the state government issued the notification by invoking powers from a repealed statute, The Minimum Wages Act, 1948, which became obsolete after the implementation of Code on Wages Act, 2019.

“…Counsel for the petitioners seeks permission to implead the Central Government as a party to the proceedings in the open Court. Submission is noted. Permission is noted… The counsel for the petitioners is directed to serve copy of the writ petition along with annexures to the Central Government Standing Counsel. List this matter on 09.06.2026…”, the court noted in its order while allowing impleadment of Centre.

Senior Counsel S.S. Naganand and Advocate B.C. Prabhakar, representing the petitioners, pointed out that the government notification was issued by exercising powers under Sections 3(1)(b) and 5(1)(b) of the Minimum Wages Act, 1948, which is 'non-est in the eyes of law' since the Code on Wages combined together 4 major labour legislations (Minimum Wages, Payment of Wages, Payment of Bonus, and Equal Remuneration Acts) and repealed the earlier applicable laws.

“…With effect from November 21, 2025, the Minimum Wages Act, 1948 has been repealed and replaced by the Code on Wages, 2019. Consequently, the First Respondent has exercised powers under a non-existent statute, rendering the impugned notification non-est in the eyes of law…” the plea states.

Moreover, on Section 69 of the Code on Wages, the Association as well as the Company submitted that while the savings clause permits actions instituted under old, repealed enactments, such protection is available only 'to the extent they are not contrary to the provisions of this Code'.

Code on Wages is has removed the concepts of 'Scheduled Employments', hence completely negating the substratum of the notification that lists 81 'scheduled employments.

In 2022-23, the government had revised minimum wages for 34 scheduled employments. While the challenge against the initial notification about revision of wages in 34 employments were pending before the Single Judge Bench on remand, the state government had issued another fresh draft notification on April 11, 2025, proposing to revise minimum wages for 84 scheduled employments. This led to the filing of multiple writ petitions against the draft, in which the interim orders were passed by the High Court, says the petitioners.

In one of such petitions, WP No. 18515/2025, the High Court had taken on record the state government's undertaking that 'no further action would be taken unless the meeting is held and representatives of the concerned industry are heard'.

In July 2025, in W.P. No. 21852/2025, the Court directed that 'in case, any decision is taken on 29th of this month in the Advisory Board meeting, the decision shall not be implemented till next date'.

Thereafter, on July 29, 2025, in W.P. Nos. 22771/2025 and 22776/2025, the Court directed that 'the order that would be passed by the meeting of the Advisory Board on 29.07.2025 or subsequently, shall not be implemented till the next date of hearing'.

The petition alleges that despite these orders which are not in state's favour, the government issued the impugned final notification on May 22, 2026, by wilfully defying the earlier court orders, amounting to contempt of court.

The petition further assails the substantive revision of wages, claiming an 'astronomical increase of up to 60%' which is described as 'completely unaffordable and confiscatory', even though the prevailing minimum wages applicable across Karnataka is ranked second nationwide when compared with other jurisdictions.

“...The minimum wages are adjusted for inflation annually through Variable Dearness Allowance (VDA). Therefore, any quinquennial revision of minimum wages ought to be reasonable and measured – typically restricted to an increase of 10 to 15 per cent as consistently done in the past”, the petition further adds.

Advocate General K. Shashikiran Shetty appeared for the State government. Caveats were entered by respondent Nos. 2, 3, and 5-various trade unions including AITUC, AICCTU, and CITU, represented by Senior Counsel K.B. Narayan Swamy, Clifton D. Rozario, and Senior Counsel Vikram Huilgol respectively.

Case Title: Karnataka Employers' Association & Anr. v. State of Karnataka & Ors.

Case No: WP 16145/2026

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