Members of various trade and industry bodies have opposed the hike in minimum wages for labourers, calling it an “abnormal increase”, and demanded its immediate withdrawal.A delegation met Belagavi Deputy Commissioner Mohammad Roshan here on Monday (June 1) and submitted a memorandum to the government. They also said that it was in contravention to a High Court judgement that had restrained the government from taking such a step. They urged the government to ensure that “any revision in minimum wages was reasonable, gradual, and industry-sensitive”.“We express our strong objection to the final notification issued on May 22 by the Government of Karnataka revising minimum wages across 81 scheduled employments. It has far-reaching legal, economic, and industrial implications, which, if not addressed immediately, will severely impact the survival of industries and the overall industrial climate in Karnataka,’’ the leaders told the government.“The State government has issued a draft notification dated April 11, 2025, under the Minimum Wages Act, 1948, proposing a uniform wage structure across 61 scheduled employments and inclusion of 18 additional employments, totalling 81 scheduled employments. This approach is fundamentally contrary to the object and scheme of the Minimum Wages Act, 1948, which requires differentiation based on industry and region,” they added.“Considering several writ petitions, the High Court had restrained the Karnataka government from issuing such an order without hearing the stakeholders. It had also directed the government that any decision taken by the Advisory Board shall not be implemented until further orders are given by the court. Despite these explicit directions, the government has proceeded to issue the final notification dated May 22, without seeking leave of the High Court, which raises serious concerns regarding compliance with judicial orders,” the leaders further said.“The final notification has been issued under the Minimum Wages Act, 1948, which stands repealed upon the Code on Wages coming into force on November 21, 2025. Therefore, the notification is without authority of law and legally untenable. Under the Code on Wages, revision of minimum wages by the State government is contingent upon fixation of National Floor Wages by the Central government,” they further stated.In the absence of such determination, the present notification is premature and contrary to statutory mandate, they said in the memorandum.They also claimed “the revised wages reflected an abnormal increase’’ of approximately 60%, with an additional 30% compliance cost, resulting in an overall burden exceeding a 100% increase in cost to company. Such a steep increase comes at a time when industries are already under significant stress due to rising input costs, including raw materials, petroleum products, and global supply chain pressures.Most MSMEs, small businesses, and shop establishments — particularly in semi-urban and rural areas — will be disproportionately affected, as they lack the financial resilience to absorb such a drastic cost escalation. This can have an adverse impact on employment and industrial growth.MSMEs contribute nearly 90% of employment in the industrial sector of the State. The proposed wage increase will directly threaten their viability, potentially leading to downsizing, closures, and loss of employment. What is more, increased cost of production will render Karnataka-based industries uncompetitive, forcing buyers to source products from other States with lower wage structures, thereby reducing order inflow and industrial output. Karnataka already has one of the highest minimum wage rates among southern States. The present increase will further widen this gap, discouraging new investments and affecting the State’s industrial attractiveness. Neighbouring states, including Maharashtra, continue to maintain comparatively lower wage structures, placing Karnataka industries at a competitive disadvantage, they said.They demanded that the State government immediately withdraw the notification, ensure compliance with relevant judicial directions, initiate fresh consultations with industry stakeholders and associations and issue a revised draft notification only after fixation of National Floor Wages under the new Code on Wages.Prabhakar Nagarmunoli, Satish Kulkarni, Nitin Landge, Satish Nerlekar, Ram Bhandare, Sadanand Humberwadi, Mahesh Inamdar, Prashant Patil, and others were present.Members of the Belgaum Chamber of Commerce and Industries, District Small Scale Industries Association, Belgaum Foundry Cluster, Laghu Udyog Bharati, Institute of Indian Foundrymen, and others have signed the memorandum.