Karnataka Minimum Wages Act Notification 2026

Karnataka Minimum Wages Revised from 1 April 2026: What Employers Need to Know

The Government of Karnataka has released the latest revision of minimum wages applicable to employees working in Shops and Commercial Establishments across the state. The revised wage rates, including the Variable Dearness Allowance (VDA), are effective from 1 April 2026 to 31 March 2027

Key Highlights

• The revised wages apply to employees working in Shops and Commercial Establishments across Karnataka.

• Wage rates vary based on:

  1. Employee skill category (Highly Skilled, Skilled, Semi-Skilled, and Unskilled).
  2. Designated office staff and driver categories.
  3. Geographic zones (Zone I to Zone IV)
  4. A Variable Dearness Allowance (VDA) of ₹174.97 per day (₹4,549.20 per month) has been incorporated based on the latest Cost of Living Index calculations.
• A Variable Dearness Allowance (VDA) of ₹174.97 per day (₹4,549.20 per month) has been incorporated based on the latest Cost of Living Index calculations.

Examples of Revised Monthly Minimum Wages

Under Zone I (BBMP Areas), the revised monthly minimum wages include:

• Highly Skilled Workers: Up to ₹19,972.60 per month.
• Skilled Workers: Up to ₹18,570.47 per month.
• Semi-Skilled Workers: Up to ₹17,295.81 per month.
• Unskilled Workers: Up to ₹16,137.03 per month.

The notification also prescribes revised wage rates for managerial staff, clerical employees, office assistants, drivers, and other categories.

Zone Classification

The notification categorizes establishments into four zones:

• Zone I: Areas under Bruhat Bengaluru Mahanagara Palike (BBMP).
• Zone II: Other municipal corporation areas in Karnataka.
• Zone III: District headquarters (excluding Zones I and II).
• Zone IV: All remaining areas of the State.

What Employers Should Do

Employers should review their payroll structures and ensure that employee salaries comply with the revised minimum wage requirements effective 1 April 2026. Organizations should also verify employee classifications and applicable zones to avoid compliance risks and statutory penalties.

For the official Government notification, click here: Karnataka Minimum Wages Notification 2026