Government of Karnataka invites comments on draft Code on Wages (Karnataka) Rules, 2026 by 08.03.2026

The Department of Labour, Government of Karnataka has issued the draft Code on Wages (Karnataka) Rules, 2026 (“Draft Rules”) through its notification dated 23rd January 2026. These Draft Rules will come into force from the date of their publication in the Official Gazette, and will supersede the existing Minimum Wages ( Karnataka) Rules, 1958, the Payment of Wages (Karnataka) Rules, 1963, the Equal Remuneration (Karnataka) Rules, 1976 and the Payment of Bonus (Karnataka) Rules, 1965, along with their amendments.

Stakeholders are invited to submit their objections or suggestions, if any, to the Secretary to Government, Labour Department, Vikasa Soudha, Dr. B.R. Ambedkar Veedhi, Bengaluru, by 8^th March 2026, (i.e.,within 45 days from the date of its publication in the Official Gazette).

The Draft Rules propose to:

1. Prescribe a methodology for fixation of minimum wages by:

a. Treating the standard working class family as three adult consumption units;

b. Adopting a norm of 2700 calories per day per consumption unit and 66 metres of cloth per family per year;

c. Providing for housing rent at 10% of food and clothing expenditure;

d. Treating fuel, electricity and other miscellaneous expenditure as 20% of minimum wages; and

e. Including expenditure on children’s education, medical needs, recreation and contingencies at 25% of minimum wages; and prescribing day, hourly and monthly wage computation.

2. Constitute a Technical Committee under the Labour Commissioner, Government of Karnataka, with representatives from the Department of Skill Development, Entrepreneurship and Livelihood, Department of Factories, Boilers, Industrial Safety and Health, and technical experts representing employers and workers, to advise on skill categorisation and to modify Schedule E for occupational classification (unskilled, semi‑skilled, skilled and highly skilled).

3. Fix the normal working day at 8 hours of work with rest intervals not exceeding 1 hour, subject to a maximum daily spread over (including rest) of 12 hours.

4. Provide for a weekly day of rest (ordinarily Sunday) with substituted rest days, and payment of wages for rest day and overtime rate wages when employees work on rest days.

5. Impose wage related record keeping and procedural requirements on employers by mandating maintenance of:
a. Combined Register of Wages, Overtime, Fines, Deductions for Damage/Loss and Advances in Form I (electronically or otherwise), and preserved for five years after the last entry;
b. Employee Register in Form IV;
c. Issuance of wage slips in Form V, electronically or otherwise, on or before payment of wages.

6. Establish and empower a State Advisory Board and committees to advise the State Government with equal representation of employers and employees, independent members including the Labour Commissioner as Chairperson, and a requirement that one‑third of members be women, with detailed provisions on meetings, term and functioning.

7. Regulate payment of wages, claims and bonus by limiting total deductions to 50% of monthly wages (with carry forward of any excess), and prescribing procedures for fines, deductions for damage or loss, recovery of advances and deductions for approved loans.

8. Provide for deposit and disbursement of undisbursed dues with the Labour Officer having jurisdiction in cases of death or whereabouts not known.

9. Make the Principal Employer liable for timely payment of wages and minimum bonus to contract labour where the contractor defaults, with a right of recovery from the contractor.

Source: Department of Labour, Government of Karnataka