Hotels, food processing units, construction firms and even apartment complexes are expected to feel the impact of the revised wages.
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Karnataka’s recent notification on minimum wage revision is expected to send a ripple across sectors, with industries warning of higher costs not only for businesses, but for consumers. Labour representatives, however, argue that the long-term economic and social benefits outweigh the immediate burden. Hotels, food processing units, construction firms and even apartment complexes are expected to feel the impact of the revised wages, with industries pointing out that the increased labour costs will inevitably be passed on to consumers. Hotel industryThe hotel industry, in particular, has warned of a sharp increase in food prices once the revised wages come into force. “The increase means at least ₹5,000 extra per worker every month compared to current salary levels. Most hotel workers are presently paid around ₹16,000 a month,” said Roopa Shashtri, owner of a food chain in Gandhinagar. “If wages have to be raised, it will directly reflect in menu prices. Even a plate of idli that costs ₹40 today may have to be sold at ₹80,” she said. Construction companies said the impact will be substantial because labour forms a major share of overall project expenditure.Contractors explain that the effect is not limited to unskilled workers alone. This, they say, will create a cascading increase in labour costs across an entire project. “The sector is already under pressure from rising prices of steel, cement, sand, fuel and transportation,” said Sreedhar M.N., a construction contractor. “When labour costs are added on top of these existing increases, the overall cost of construction inevitably goes up.” He pointed out that labour alone accounts for nearly 25% to 35% of total project expenditure.
