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TN State Verified

Minimum Wages in Tamil Nadu Apr 2026 - Mar 2027

Current Tamil Nadu Shops & Commercial Establishments rates. Two zones, three skills, Basic plus DA breakdown.

Source: Tamil Nadu Commissioner of Labour. Notification Z3/3459/2026 dated 18 Feb 2026.

Wage Range / Month

Rs 13,972 to Rs 14,233

Across 3 skill levels and 2 zones | Shops & Commercial Establishments

Effective

Apr 2026 - Mar 2027

Zones

2 zones

Notified Rates

Complete Rate Card: All Skills and Zones

Shops & Commercial Establishments rates. Monthly and daily (26 days). DA Rs 7,353 uniform. Source: TN Commissioner of Labour, notification Z3/3459/2026.

Zone UnskilledSemi-SkilledSkilled
Zone A
Per month

Rs 14,044

Rs 540 / day

Rs 14,182

Rs 545 / day

Rs 14,233

Rs 547 / day

Zone B
Per month

Rs 13,972

Rs 537 / day

Rs 14,106

Rs 543 / day

Rs 14,168

Rs 545 / day

Zone Coverage

Zone A: All Corporations and Special Grade Municipalities

Zone B: All Municipalities other than Special Grade

Wage Composition

How the Tamil Nadu Wage Is Built Up

Example: Zone A Unskilled worker, monthly figures. Tamil Nadu uses Basic + DA. DA is over half the total wage.

Basic Wage

Rs 6,691

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

DA

Rs 7,353

Dearness Allowance at Rs 40.18 per CPI point. Revised annually each April.

Total / Month

Rs 14,044

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

Basic and DA 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 Tamil Nadu

Statutory add-ons on top of Rs 14,044 Zone A Unskilled base.

Gross monthly wage
Floor per worker
Rs 14,044
Employer EPF (12 percent of Basic + DA)
EPF Act 1952, Section 6
Rs 1,685
Employer ESI (3.25 percent if gross <= Rs 21,000)
ESI Act 1948
Rs 456
Statutory bonus (8.33 percent)
Payment of Bonus Act 1965, Section 10
Rs 1,170
Gratuity provisioning (4.81 percent)
Payment of Gratuity Act 1972
Rs 676
Total employer cost per worker / month Rs 18,031
Compliance Checklist

4 Things Every Tamil Nadu Employer Must Do

01

Pay at or above the notified rate

Apply current Zone A or B 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 + DA separated, deductions register, overtime register under the TN Minimum Wages Rules, 1953. 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 Tamil Nadu minimum wage notice in Tamil and English at the workplace within 30 days of revision.

Category Guide

Which Skill Category Does Your Worker Fall Under?

Tamil Nadu Shops & Establishments notification uses 3 skill levels.

Unskilled

Peon, Helper, Shop assistant, Cleaner

Semi-Skilled

Cashier, Clerk, Salesman, Store keeper

Skilled

Assistant Manager, Supervisor, Accountant

Penalty

Cost of Underpayment in Tamil Nadu

Section 22 of the Minimum Wages Act, 1948 applies. Tamil Nadu Labour Department inspects Chennai, Coimbatore, and Tiruppur industrial clusters 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 Tamil Nadu Sectors

  • Textiles and garments (Tiruppur, Erode)
  • Auto and engineering (Chennai, Hosur)
  • Retail and hospitality (Chennai, Coimbatore)
  • Security and housekeeping (statewide)
  • Construction (metro projects)

Rate applies by employee work location zone, not employer registered zone.

Revision History

Tamil Nadu DA Trend

Annual DA notification, latest first.

Period DA / Month Change
Apr 2026 - Mar 2027CURRENT Rs 7,353 Current
Apr 2025 - Mar 2026 Rs 6,810 +8.0%
Apr 2024 - Mar 2025 Rs 6,290 +8.3%
factoHR India

Auto-apply Tamil Nadu wages on every payslip

factoHR India tracks Tamil Nadu Labour notifications, splits Basic and DA per zone and skill, and flags any payslip below the floor wage.

Book a Demo

Annual auto-update

Zone + skill aware

Floor wage guardrail

Register-ready

Other State Wage Pages

FAQ

Tamil Nadu Minimum Wages FAQ

What is the minimum wage in Tamil Nadu for Shops & Establishments 2026?
Tamil Nadu notified Shops & Commercial Establishments minimum wages between Rs 13,972 and Rs 14,233 per month effective 1 April 2026 to 31 March 2027 under notification Z3/3459/2026. Rates split by skill (Unskilled, Semi-Skilled, Skilled) and zone (A, B). DA of Rs 7,353 is uniform across zones.
How is the Tamil Nadu minimum wage calculated?
Total monthly wage = Basic + DA. For a Zone A Unskilled worker, Basic is Rs 6,691 and DA is Rs 7,353, totalling Rs 14,044. DA is calculated at Rs 40.18 per CPI point and stays uniform across zones for the financial year.
How many zones does Tamil Nadu use?
Tamil Nadu uses two zones. Zone A covers all Corporations and Special Grade Municipalities including Chennai, Coimbatore, and Madurai. Zone B covers all other Municipalities with marginally lower rates.
When does the next Tamil Nadu wage revision happen?
The current notification covers 1 April 2026 to 31 March 2027. Tamil Nadu revises DA annually each April linked to the Consumer Price Index. The next revision is expected by April 2027.
How does factoHR India automate Tamil Nadu minimum wage payroll?
factoHR India tracks the latest Tamil Nadu notification, splits Basic and DA per zone and skill, applies the annual DA revision, flags any payslip below the floor, and maintains registers under the TN Minimum Wages Rules, 1953.

Run Tamil Nadu Payroll Without Spreadsheets

factoHR India auto-applies the latest Tamil Nadu wages per worker. No missed DA cycles, no arrear surprises.

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