Kerala is moving to raise minimum wages and extend bonus benefits to a larger section of its workforce under its proposed state rules for implementing the central Labour Codes. A draft report carrying key recommendations was handed over to Chief Minister V.D. Satheesan by Labour Minister Bindu Krishna on Wednesday, 4 November 2026, in Thiruvananthapuram.

Key Recommendations in the Draft Report

The most significant structural proposal is a revision to the family unit used for minimum wage calculation. The existing unit of three members is proposed to be expanded to five members by including the worker's parents, which would directly raise the wage baseline and create scope for higher minimum wages across categories. The report also recommends bringing more workers under the coverage of bonus and other statutory benefits, ensuring a broader section of the workforce receives protections available under labour law.

Worker Safety and Night Shift Protections

Worker safety features prominently in the committee's recommendations. The report calls for free medical examinations for employees engaged in hazardous and dangerous work processes. It also proposes strict safety provisions for women working night shifts, with the state rules set to include specific safeguards that protect them while permitting night-hour employment. These provisions reflect longstanding demands from trade unions, particularly in sectors such as manufacturing and healthcare.

How the Committee Was Formed

The recommendations were prepared by a special committee constituted at a meeting chaired by Chief Minister Satheesan on 22 October 2026. The panel was convened by the Labour Commissioner and included the Law Department Additional Secretary, representatives of seven trade unions, and Labour Department officials. The committee concluded its work after ten days of deliberations, examining the concerns of both the state government and trade unions over the Labour Codes. Earlier, state-level amendments had been examined by the Justice Gopal Gowda Committee, which submitted recommendations on necessary legal changes.

Lockout and Layoff Amendments Proposed

The report additionally calls for amendments to provisions relating to lockouts and layoffs, aimed at giving the state government greater powers to intervene in such situations. Critics of the central Labour Codes have long argued that the consolidation of 29 central laws into four codes risks diluting protections built over decades. Kerala's draft proposals are explicitly framed to ensure that the state's implementation does not erode existing worker safeguards on wages, welfare, and workplace safety.

What Happens Next

The draft report will now be examined by the state government as it proceeds with framing formal state rules under the Labour Codes. The process of finalising these rules will determine how effectively Kerala balances compliance with the central framework while preserving the worker-protective standards the state has historically maintained. The outcome could also serve as a reference point for other states navigating similar tensions between the central codes and existing state-level labour protections.