Karnataka Releases Draft Rules Based on Labour Codes

The Karnataka government has released the draft Code on Wages (Karnataka) Rules, which follow the provisions of the Centre’s new labour codes. These rules have drawn criticism from trade unions and opposition parties, who say they weaken worker protections and reduce benefits for employees.

The draft rules are based on the Code on Wages, 2019, one of the four labour codes introduced by the Union government. These labour codes were notified months ago but faced strong protests from trade unions and several political parties. Even the Congress party, which is now in power in Karnataka, had earlier opposed the labour codes at the national level.

According to unions, the draft wage rules use a minimum wage formula that reduces the share of housing costs while calculating wages. They say this could lower the overall minimum wage that workers receive. Union leaders fear that this move will hurt low-income workers who already struggle to meet basic expenses such as rent, food, and healthcare.

They also warn that the new system could lead to a “race to the bottom,” where States might keep wages low to attract companies and investments. This, they say, may benefit employers but put workers at a disadvantage.

The Union government had earlier introduced four labour codes to simplify and combine many old labour laws. These include the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020. The Centre said the changes would make doing business easier and create more jobs.

However, critics argue that the new codes dilute existing safeguards for workers, make it harder to access welfare benefits, and give more power to employers. They claim that the changes could reduce job security and weaken workers’ rights.

Trade unions in Karnataka have demanded that the state government reconsider the draft rules and hold proper discussions with worker groups before finalising them. They have warned of protests if their concerns are not addressed.

The draft rules are now open for public feedback, and the government is expected to review suggestions before taking a final decision.