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Minimum Wages in Karnataka Apr 2026 - Mar 2027

Current Karnataka Shops & Commercial Establishments rates. Three zones, three skills, Basic plus VDA breakdown.

Source: Karnataka Labour Department. Effective FY 2026-27.

Wage Range / Month

Rs 15,060 to Rs 18,570

Across 3 skill levels and 3 zones | Shops & Commercial Establishments

Effective

Apr 2026 - Mar 2027

Zones

3 zones

Notified Rates

Complete Rate Card: All Skills and Zones

Shops & Commercial Establishments rates. Monthly and daily (26 working days). VDA Rs 4,549 uniform across zones. Source: Karnataka Labour Department FY 2026-27.

Zone UnskilledSemi-SkilledSkilled
Zone I
Per month

Rs 16,137

Rs 621 / day

Rs 17,296

Rs 665 / day

Rs 18,570

Rs 714 / day

Zone II
Per month

Rs 15,585

Rs 599 / day

Rs 16,689

Rs 642 / day

Rs 17,903

Rs 689 / day

Zone III
Per month

Rs 15,060

Rs 579 / day

Rs 16,111

Rs 620 / day

Rs 17,267

Rs 664 / day

Zone Coverage

Zone I: BBMP Bengaluru limits

Zone II: Other municipal corporation areas

Zone III: District headquarters and remaining areas

Wage Composition

How the Karnataka Wage Is Built Up

Example: Zone I Unskilled worker, monthly figures. Karnataka uses Basic + VDA (no separate HRA component).

Basic Wage

Rs 11,588

Government-notified base rate by zone and skill. Revised under Section 5(1) of the Minimum Wages Act, 1948.

VDA

Rs 4,549

Variable Dearness Allowance. 4 paise per CPI point above base 6,537. Revised annually each April.

Total / Month

Rs 16,137

Floor wage payable. Cannot fall below this under Section 22.

Basic and VDA must appear as separate line items on the payslip under the Payment of Wages Act, 1936.

Employer Cost Guide

True Cost of 1 Minimum-Wage Worker in Karnataka

Statutory add-ons on top of Rs 16,137 Zone I Unskilled base.

Gross monthly wage
Floor per worker
Rs 16,137
Employer EPF (12 percent of Basic + DA)
EPF Act 1952, Section 6
Rs 1,936
Employer ESI (3.25 percent if gross <= Rs 21,000)
ESI Act 1948
Rs 524
Statutory bonus (8.33 percent)
Payment of Bonus Act 1965, Section 10
Rs 1,344
Gratuity provisioning (4.81 percent)
Payment of Gratuity Act 1972
Rs 776
Total employer cost per worker / month Rs 20,717
Compliance Checklist

4 Things Every Karnataka Employer Must Do

01

Pay at or above the notified rate

Apply current Zone I, II, or III rate per worker. Update payroll when the annual April notification takes effect. Compute arrears for back-dated effective dates.

02

Maintain statutory registers

Keep Form A (Muster Roll), wage register with Basic + VDA separated, deductions register, and overtime register under the Karnataka Minimum Wages Rules, 1958. Preserve for 3 years.

03

Pay within the wage cycle

Wages payable by 7th of next month (under 1,000 workers) or 10th (1,000 plus) under the Payment of Wages Act, 1936. Overtime at twice the ordinary rate under Section 14.

04

Display the wage notice

Post the current Karnataka minimum wage notice in Kannada and English at the workplace within 30 days of revision.

Category Guide

Which Skill Category Does Your Worker Fall Under?

Karnataka Shops & Establishments notification uses 3 skill levels.

Unskilled

Loader, Cleaner, Helper, Office attendant

Semi-Skilled

Store keeper, Counter staff, Operator assistant

Skilled

Electrician, Cashier, Accountant, Technician

Penalty

Cost of Underpayment in Karnataka

Section 22 of the Minimum Wages Act, 1948 applies. Karnataka Labour Department inspects Bengaluru IT-services, retail, and security sectors closely.

Fine up to Rs 1 lakh per offence
Imprisonment up to 5 years, or both
Arrears + compensation up to 10x the shortfall
Continuing offence: extra daily fine

High-Risk Karnataka Sectors

  • IT and ITES support staff (Bengaluru)
  • Retail and malls (Bengaluru, Mysuru)
  • Security and housekeeping (statewide)
  • Garments and textiles (Bengaluru, Ballari)
  • Construction (metro projects)

Rate applies by employee work location, not company registered address.

Revision History

Karnataka VDA Trend

Annual VDA notification, latest first.

Period VDA / Month Change
Apr 2026 - Mar 2027CURRENT Rs 4,549 Current
Apr 2025 - Mar 2026 Rs 4,114 +10.6%
Apr 2024 - Mar 2025 Rs 3,702 +11.1%
factoHR India

Auto-apply Karnataka wages on every payslip

factoHR India tracks Karnataka Labour Department notifications, splits Basic and VDA per zone and skill, and flags any payslip below the floor wage.

Book a Demo

Auto-update on notification

Zone + skill aware

Floor wage guardrail

Register-ready

Other State Wage Pages

FAQ

Karnataka Minimum Wages FAQ

What is the minimum wage in Karnataka for Shops & Establishments 2026-27?
Karnataka notified Shops & Commercial Establishments minimum wages between Rs 15,060 and Rs 18,570 per month effective 1 April 2026 to 31 March 2027. Rates split by skill (Unskilled, Semi-Skilled, Skilled) and zone (I, II, III). VDA of Rs 4,549 is uniform across all zones for the financial year.
How is the Karnataka minimum wage calculated?
Total monthly wage = Basic + VDA. Basic is government-notified by zone and skill. VDA is calculated at 4 paise per CPI point above the base of 6,537 points and stays uniform across zones for the financial year. Karnataka revises VDA annually each April.
How many zones does Karnataka use?
Karnataka uses three zones. Zone I covers BBMP Bengaluru limits with the highest rates. Zone II covers other municipal corporation areas. Zone III covers district headquarters and remaining areas with the lowest rates.
When does the next Karnataka wage revision happen?
The current notification covers 1 April 2026 to 31 March 2027. Karnataka revises VDA annually. The next revision is expected by April 2027 with updated VDA linked to the Consumer Price Index.
How does factoHR India automate Karnataka minimum wage payroll?
factoHR India tracks the latest Karnataka notification, splits Basic and VDA per zone and skill, applies the annual VDA revision, flags any payslip below the floor, and generates statutory registers under the Karnataka Minimum Wages Rules, 1958.

Run Karnataka Payroll Without Spreadsheets

factoHR India auto-applies the latest Karnataka wages per worker. No missed VDA cycles, no arrear surprises.

If you employ staff in Karnataka, the same workforce is also covered by Professional Tax in Karnataka, working-hour and overtime rules in Karnataka, Labour Welfare Fund rates in Karnataka, and the public holiday calendar for Karnataka. Keep every Karnataka statutory obligation aligned across your payroll.