Amidst the Karnataka government’s loud proclamations about hiking the minimum wage and making it the highest in the country, IT and IT-enabled services workers in the state are alleging that many employers in the sector do not pay the minimum wage. IT workers unions also point out that the minimum wage does not apply to the IT industry because the Karnataka government has exempted the industry from most labour laws.
The Karnataka government on May 22, notified the final draft of a revision of minimum wages across the state. Under the updated regulations, minimum monthly earnings for unskilled labourers would be set at Rs 21,251 in rural and semi-urban districts, Rs 23,376 in municipal corporations outside of Bengaluru, and Rs 25,714 for positions located within the Greater Bengaluru area.
Meanwhile, monthly earnings for highly skilled workers would be set at Rs 28,285 in rural and semi-urban districts, Rs 31,114 in municipal corporations outside of Bengaluru, and Rs 34,225 for positions located within the Greater Bengaluru area.
Dushyant Dubey, founder of human rights NGO Broseph Foundation, told TNM that IT workers were being paid less as they had been “made skilled enough to produce wealth, but too powerless to demand a fair share of it.”
According to Dushyant, numerous IT and ITeS workers involved in entry-level software testing, data entry, and BPO voice support roles are currently earning around Rs 15,000 to Rs 20,000, while being coerced into unpaid overtime work and denied employment benefits.
He congratulated the labour ministry for introducing progressive minimum wage reforms but implored them to reconsider the exemptions given to IT companies in Karnataka and called for introduction of legislation to address the particular issues within the IT and ITeS sector.
It was in 2009 that the Karnataka government first exempted a range of “knowledge based industries” including the IT and IT enabled industries from the Industrial Employment (Standing Orders) Act 1946. The Standing Orders stipulate conditions such as working hours, attendance, shifts, salaries including over time, termination, grievance redressal, etc. The Karnataka government has extended the exemption since then, which IT workers and labour activists allege is discriminatory because all workers should have equal protection under the law.
Dushyant said that companies used fear as a management tool by making employees work nights and meet impossible deadlines and telling them that this was normal because “there are 10 others waiting to replace them.”
Suman Das, the convenor of IT and ITES Democratic Employees Association (IIDEA) told TNM that many in IT-related and ITeS fields such as those in entry-level digital marketing, data entry, and call centres continue to earn even below these limits, despite being classified as skilled workers. IIDEA is affiliated to the All India Central Council for Trade Unions (AICCTU).
Suman reiterated that services from the IT and ITeS sector were one of the biggest exports for the Indian government, yet the government failed to bring any regulations to support the sector’s human resource.
He claimed that the government's actions were an attempt to create a more “investment-friendly” industry, effectively prioritising the interests of private investors and employers over those of the workforce.
He told TNM that the government was paralysing and diluting the protection that previous laws provided to employees, alleging, “The government is moving from a socialistic approach towards a more capitalistic approach.”
He said that the IIDEA had submitted their demand for a rise in the minimum wage for all sectors, accounting for rise in prices to the labour secretary and hoped that the secretary would issue a timely response. “It is very difficult for basic livelihood. So, it is important to increase the wage,” he said.
Dushyant advocated for the enactment of an IT Workers Act to tackle the unique challenges of the industry. He emphasised that such legislation should regulate critical areas, including working hours, overtime compensation, and health insurance.
He also urged that the law address access to mental and physical health resources, unemployment support during layoffs, transparency in hiring and internship processes, as well as oversight on salary disbursements and final settlements. “We need the IT Workers Act to address the specific issues and problems of this sector as well,” he said
(This story was written by a student interning with TNM)