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Rs 150 for a dosa? Bengaluru hoteliers warn of 60% price shock over minimum wage hike
Under the new wage revision system, Karnataka has been divided into three zones, with workers being classified under four categories—highly skilled, skilled, semi-skilled and unskilled.
The Karnataka State Hotels' Association and Bruhat Bengaluru Hotel Owners Association have said the minimum wage hike would come as a blow to the industry, already reeling under the LPG price hike. (Image generated using AI)
The Karnataka government’s recent move to hike the minimum wages for workers across the state has not gone well with Bengaluru hoteliers, who have complained that the increased burden will be passed on to customers.
“Once implemented, a masala dosa’s cost could rise from Rs 80 to Rs 150, vegetarian meals from Rs 150-200 to Rs 250-300, and biryani from Rs 300-350 to nearly Rs 500. Even a plate of idli, currently priced around Rs 50 at most eateries, may soon cost Rs 80 or more following the wage revision,” said G K Shetty, Karnataka State Hotels’ Association (KSHA) president.
There are nearly 60,000 hotels in the state, and about 15,000 are members of KSHA.
Under the wage revision notified on May 22, the state has been divided into three zones, with workers being classified under four categories—highly skilled, skilled, semi-skilled and unskilled.
The monthly minimum wage of unskilled labourers in Zone 1 (Bengaluru and districts with municipal corporations) will increase to Rs 23,276 from the existing Rs 19,000. This, hotels’ associations across the city have warned, could result in food prices increasing by as much as 60 per cent over the coming months.
“Due to the West Asia conflict, the hospitality industry has already been massively affected. The prices of raw materials and LPG have shot up. Petrol and diesel prices have also increased. The minimum wage hike would be a big jolt,” Bruhat Bengaluru Hotel Owners Association president P C Rao told The Indian Express. “We will be left with no choice but to increase the prices. The prices of essential commodities have already risen, with Sona Masuri rice increasing by Rs 5 per kg and jeera rice by Rs 10 per kg,” he pointed out.
The association stated that if Rs 23,276 is fixed as the monthly minimum wage for unskilled workers, employers would incur a cost of Rs 36,000 per worker, which would include Employee State Insurance (ESI), provident fund, food, accommodation, and other expenses.
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The new notification applies to 81 scheduled sectors and covers around two crore workers.
The new zones and the revised monthly wages
Zone 1 (Bengaluru/under GBA limits)
Unskilled workers: Rs 23,376
Semi-skilled: Rs 25,714
Skilled: Rs 28,285
Highly skilled: Rs 31,114
—–
Zone 2 (Corporations and district HQ)
Unskilled workers: Rs 19,238
Semi-skilled: Rs 16,689
Skilled: Rs 17,902
Highly skilled: Rs 19,238
——-
Zone 3 (Rural areas)
Unskilled workers: Rs 19,319
Semi-skilled: Rs 25,714
Skilled: –
Highly skilled: –
(According to the government, the wage revision is based on the calculation of expenditure of households as per the guidelines fixed by the Supreme Court in the 1991 Reptakos Brett case.)
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