The State government seems to have buckled under pressure from industries over THE implementation of revised minimum wages. The Cabinet on Thursday decided to set up a sub-committee headed by Deputy Chief Minister G. Parameshwara to study the issue.

While the revision of minimum wages — notified in May — had been welcomed by trade unions in the State, the industry had opposed it citing that the revision has been steep and feared a flight of capital to neighbouring States.

“The committee will study the revision of minimum wages and submit a report to the Cabinet, which will again discuss the issue before deciding on it,” sources said.

Sources said that since the revision of minimum wages is yet to be implemented in the State, a status quo will continue. The committee is likely to have Labour Minister Santosh Lad and Industries Minister M.B. Patil, among others.

The Finance Department, citing higher expenditure on implementing revised minimum wages, has opposed the wage revision.

Keen to review

The government is learnt to be keen on reviewing the wages, and had sought opinion and justification from the Labour Department for notifying the revised wages without Cabinet clearance.

However, the revised wages had been discussed in the State Minimum Wages Advisory Board having representation from workers, industry and the government.

A senior official had earlier said that it was a “grey area” whether to seek Cabinet approval or not.

Cauvery: State to appeal

The Cabinet also approved the government’s decision to go on an appeal against the Cauvery Water Management Authority’s directive to Karnataka to release 12,000 cusecs daily for 15 days.

Sources said that Advocate-General K. Shashi Kiran Shetty gave a presentation to the Cabinet. Sources said that the State was releasing between 7,000 and 7,500 cusecs daily, and that it was not possible to release the remaining quantum of water. The appeal will be filed in the Supreme Court next week, sources said.

Apartment Bill

Meanwhile, the Cabinet also cleared the Karnataka Apartment (Ownership and Management) Bill, 2026 to be brought before the legislature. It will replace Karnataka Apartment Ownership Act, 1972. The Bill provides relief in terms forming associations, utilisation of common areas and re-development of apartment complexes.

Published - August 13, 2026 11:18 pm IST