Significant Update To Financial Facilities for Daily Wage Workers in Karnataka

On September 20, 2024, the Government of Karnataka issued an important notification regarding the Karnataka Daily Wages Welfare Development Act, 2012. This update outlines the sanctioning of financial facilities to eligible daily-waged employees based on the revised pay scales for 2024.

Key Features of the Notification

The main provisions include:

1. Revised Minimum Pay

Eligible daily wage workers will now receive a minimum pay equivalent to the time scale of the post they are currently serving. This adjustment aligns their compensation with the updated pay scales for 2024, ensuring that their wages are fair and reflective of their roles.

2. Gratuity Provisions

The notification also stipulates that daily wage workers will be entitled to receive 90 percent of the gratuity granted to State Government employees. This gratuity will be calculated based on the minimum pay of the scale for the position they hold. This move aims to provide financial security to workers upon termination of their service, similar to what government employees receive.

3. House Rent Allowance

In addition to the minimum pay and gratuity, eligible daily wage workers will receive 90 percent of the normal house rent allowance (HRA) applicable to State Government employees in their respective duty locations. This HRA will also be based on the minimum pay scale of the post in which they are currently serving. This provision acknowledges the rising cost of living and aims to alleviate some financial burdens associated with housing.

Implications for Daily Wage Workers

These updates represent a significant step forward for daily wage workers in Karnataka:

  • Increased Financial Support: The revised minimum pay and the introduction of gratuity and house rent allowance will provide essential financial support, enhancing the overall livelihood of daily wage workers.
  • Greater Job Security: The provisions for gratuity enhance job security and offer workers a safety net, contributing to their financial stability over time.
  • Recognition of Contributions: By aligning daily wage workers’ compensation and benefits with those of State Government employees, the government acknowledges their contributions and aims to ensure equitable treatment.

Effective Date: September 1, 2024

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