The CII has said the wages have gone up by 20 per cent and are the highest among all neighbouring states. It has happened at a time when industries are looking up and planning to invest in Madhya Pradesh.
The state has raised the minimum wage by Rs 400 per month and Rs 125 as dearness allowance. Thus the minimum wage in Madhya Pradesh for industrial workers has gone up from Rs 2,165 to Rs 3,195 per month.
"Many industries may put their investment plan on backburner," the CII MP chapter has said. Industry associations in Madhya Pradesh have told Business Standard that they had not been taken into confidence by the state labour department before making the important decision. Moreover, the state labour department has also reportedly made modifications in wage revision provisions in an ambiguous manner.
Industry is planning to move court against the government decision. "Does the government raises wages of its own employees twice in two months or does it increase 20 per cent in one go," asked Gautam Kothari, president of the Pithampur Industries Association.