Karnataka Compliance

Minimum Wages in Karnataka [2026]

Notified: 22 May 2026 Karnataka Govt. Notification KA 411 L W.B.W.I 2023 81 scheduled employments | 3 zones
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Zone 1 Wage Rates: Greater Bengaluru (BBMP)

If your workplace is in a BBMP (Greater Bengaluru Authority) notified area, these are the latest monthly wage floors under Karnataka Govt. Notification dated 22 May 2026. For example, the Bengaluru unskilled worker salary now starts at ₹25,714 per month, with daily rates and skilled-tier wages shown below.

Unskilled ₹25,714 per month | ₹989.00 per day
Semi-Skilled ₹28,285 per month | ₹1,087.90 per day
Skilled ₹31,114 per month | ₹1,196.69 per day
Highly Skilled ₹34,225 per month | ₹1,316.36 per day

Source: Karnataka Govt. Notification No. KA 411 L W.B.W.I 2023, dated 22.05.2026. Zone 1 = BBMP (Greater Bengaluru Authority) notified areas.

Full Wage Table: All 3 Zones (Latest 2026 Notification)

Karnataka minimum wages under Government Notification No. KA 411 L W.B.W.I 2023, dated 22 May 2026. Both daily and monthly rates shown. Monthly rates assume 26 working days per the official formula.

Category Zone 1
BBMP / Greater Bengaluru
Zone 2
Other city corporations + district HQs
Zone 3
Remaining areas of Karnataka
Daily Monthly Daily Monthly Daily Monthly
Highly Skilled ₹1,316.36 ₹34,225.42 ₹1,196.69 ₹31,114.02 ₹1,087.90 ₹28,285.47
Skilled ₹1,196.69 ₹31,114.02 ₹1,087.90 ₹28,285.47 ₹989.00 ₹25,714.07
Semi-Skilled ₹1,087.90 ₹28,285.47 ₹989.00 ₹25,714.07 ₹899.09 ₹23,376.43
Unskilled ₹989.00 ₹25,714.07 ₹899.09 ₹23,376.43 ₹817.36 ₹21,251.30

Source: Karnataka Govt. Notification No. KA 411 L W.B.W.I 2023, dated 22.05.2026, signed by S. Tulasi, Under Secretary, Labour Department. Published via SGCMS.

Wage hike note: The latest notification raises minimum wages by up to ~55–60% across categories and zones compared to the previous schedule. Employers must update payroll structures effective the notification date.

Get the official 22 May 2026 notification Complete government notification with all 81 scheduled employments and zone definitions.

Which Industries Does This Notification Cover?

The 22 May 2026 notification covers 81 scheduled employments across Karnataka, organized into three annexures.

Annex-1: 61 General Scheduled Industries

Covers most everyday industries operating in Karnataka:

  • Beverages, food processing, bakery, confectionery
  • Carpentry, furniture, wood-based industries
  • Construction and building works
  • Electronics and electrical manufacturing
  • Hospitals, nursing homes, clinics, pharmacies
  • Hotels, restaurants, lodging, catering
  • IT, software, BPO/KPO services
  • Retail, wholesale, shops and commercial establishments
  • Transport, logistics, warehousing
  • Textile, garment, leather and footwear
  • Printing, publishing, paper products
  • Engineering workshops and general manufacturing

Annex-2: Special and Hazardous Employments

Higher wage rates apply for workers in:

  • Scavenging and sanitation work
  • Thermal power station operations
  • Foundries and metal casting
  • Chemical and pesticide manufacturing

Note: Workers performing sanitation, scavenging, or power-generation work inside any Annex-1 or Annex-3 industry are entitled to Annex-2 rates.

Annex-3: 18 Newly Added Scheduled Employments

The 22 May 2026 notification adds 18 new industries to Karnataka’s minimum wage coverage:

  • E-commerce platforms and courier/delivery services
  • Religious and social organizations
  • Public amusement parks and water theme parks
  • Mobile tower installation and maintenance
  • Aluminium and tin manufacturing
  • Computer and cyber centres
  • LPG distribution and bottling
  • Poultry farming and animal husbandry
  • Coconut and arecanut processing
  • Ready-mix concrete (RMC) offices
  • Doll and toy manufacturing
  • And several other newly scheduled trades

Coverage check: If your industry isn’t obviously in Annex-1, verify against Annex-3 before assuming the notification doesn’t apply. The e-commerce, IT-adjacent services, and amusement park additions are easy to miss.

VDA (Variable Dearness Allowance): New Rule

Under the 22 May 2026 notification, the Variable Dearness Allowance is linked to the Consumer Price Index (CPI) with the following formula:

ItemValue / Rule
CPI base reference point9,469
Trigger ruleIf CPI rises above 9,469, an additional ₹4 per day is payable to every worker category
Revision frequencyOnce a year, every April (based on previous 12 months average CPI)
Monthly VDA formulaAnnual increase in CPI index points × ₹0.04 × 30 days
EligibilityApplies uniformly to all worker categories (unskilled to highly skilled)

Payroll check: Total payable wage (Basic + VDA + statutory components) must meet or exceed the notified minimum, not just the basic salary alone. VDA cannot be skipped because the notified rates assume it is included.

Note: The earlier Shops & Commercial Establishments VDA figures (₹4,549.20/month) and Security Guard Agency VDA (₹3,254.40/month) belonged to a separate, prior schedule and are retained below for historical reference.

Important Legal Update: Code on Wages 2019

The Central Government implemented the Code on Wages, 2019 with effect from 21 November 2025. This significantly changes the legal framework but does not invalidate existing state notifications.

What the Code Repeals

Section 69 of the Code on Wages, 2019 repeals four central labour laws:

  • The Payment of Wages Act, 1936
  • The Minimum Wages Act, 1948
  • The Payment of Bonus Act, 1965
  • The Equal Remuneration Act, 1976

But Existing Notifications Stay Valid

Under Section 69(2) of the Code on Wages, 2019, read with Section 6 of the General Clauses Act, 1897, all existing minimum wage notifications issued under the repealed acts continue to remain in force until they are specifically replaced or repealed under the new Code.

This means:

  • The Karnataka minimum wage rates notified on 22 May 2026 are legally valid and enforceable, even after the Code on Wages took effect.
  • Employers must continue paying notified minimum wages and complying with state schedules.
  • Until Karnataka issues fresh notifications under the new Code, the current rates apply.

Common misconception: “The Minimum Wages Act is repealed, so old wage notifications don’t apply.” This is wrong. The savings clause keeps every notified wage rate fully enforceable.

Who These Wages Apply To

Minimum wages in Bangalore, and across the rest of the state, are notified by the Karnataka government under the Minimum Wages Act, 1948 (continuing under the savings clause of the Code on Wages, 2019), read with the Karnataka Minimum Wages Rules, 1958. The minimum salary in Bangalore depends on three factors: the industry schedule your establishment falls under, the employee’s geographic zone, and their skill classification.

This page lists the official minimum wages in Karnataka 2026-27 for every zone and worker category. The 22 May 2026 notification covers 81 scheduled employments, including IT, retail, hospitality, manufacturing, e-commerce, and most service industries operating in Karnataka.

Karnataka Wage Zones (3-Zone System)

The 22 May 2026 notification replaces the previous 4-zone classification with a simplified 3-zone system:

ZoneCoverageApplies to
Zone 1Greater Bengaluru Authority (BBMP) notified areasBangalore metro, highest rates
Zone 2Other city/municipal corporations + all district headquartersMysuru, Hubballi-Dharwad, Belagavi, Mangaluru, Tumakuru, Davanagere, Ballari, Vijayapura, Kalaburagi, and other district HQs
Zone 3All remaining areas of KarnatakaRural towns, smaller localities, and areas not in Zone 1 or 2

Worker Category Definitions (Annex-5 of Notification)

The 22 May 2026 notification defines four skill tiers based on the actual nature of work, not the designation on the appointment letter:

  • Unskilled: Workers performing tasks based on physical labour. No personal judgement, individual decision-making, or prior experience required. Physical effort is the main component. Examples: helper, loading/unloading worker, general labourer, messenger.
  • Semi-Skilled: Workers performing specific, defined, routine repetitive tasks. Work within fixed limits, follow instructions, operate machines with assistance. Examples: machine operator (assisted), packer, bill collector, shop assistant.
  • Skilled: Workers performing tasks using their own judgement, decision-making, and responsibility. They hold relevant educational qualifications and work experience in the trade or profession. Examples: technician, mechanic, salesperson, carpenter, plumber.
  • Highly Skilled: Workers with exceptional skill and capability. Can supervise all worker tasks including skilled workers, and deliver results. They possess specialized knowledge and experience in the industry. Examples: pharmacist, technical supervisor, senior engineer, specialist.

Common mistake: Labelling a semi-skilled worker as “unskilled” on paper to pay less is non-compliant. The actual work determines the category, not the designation assigned.

Key Compliance Rules Under the 22 May 2026 Notification

The notification specifies several binding rules every employer must follow:

#RuleWhat it means in practice
1 Equal pay Men, women, third gender, and persons with disabilities must receive equal wages for the same type and volume of work.
2 Piece-rate workers Wages must not be less than the daily minimum wage for 8 hours of work. One working day = 8 hours.
3 Monthly workers Wages calculated on the basis of 26 working days per month.
4 Gazette holidays / rest days Workers employed on gazetted holidays or declared rest days must receive double the minimum wage.
5 Overtime Any work beyond scheduled hours must be paid at double the regular wage rate.
6 Fractions in calculation Below 50 paise: round down. 50 paise and above: round up to ₹1.
7 Wage payment mode Wages must be paid by cheque or direct bank transfer. Cash payment is no longer the default mode.
8 Part-time workers Workers working less than 8 hours are paid proportionally, based on the daily or monthly rate.

Monthly Payroll Compliance Check

Run this five-step check before finalizing salary every month:

  1. Confirm the applicable industry schedule under the 22 May 2026 notification (Annex-1, Annex-2, or Annex-3).
  2. Identify the employee’s work location zone (Zone 1, Zone 2, or Zone 3).
  3. Map the employee to the correct skill category (Unskilled / Semi-Skilled / Skilled / Highly Skilled) based on the Annex-5 definitions.
  4. Compare total payable wage (Basic + VDA + applicable allowances) against the notified minimum, both daily and monthly.
  5. Check that no deductions (PF, ESI, advances) reduce the take-home below the minimum wage floor.

Important: An appointment letter or employment contract cannot override minimum wage law. Even if an employee agrees in writing to a lower wage, the notified minimum still applies legally.

Compliance Records to Maintain

Paying the right amount is necessary but not sufficient. Employers must demonstrate compliance during a labour department inspection.

  • Employee master with designation, actual work location (zone), and skill category.
  • Monthly wage register showing Basic, VDA, all allowances, deductions, and net pay.
  • Payslips issued to every employee every pay cycle.
  • Attendance register and overtime records.
  • Salary payment proof: bank transfer statements or cheque records (cash payments are no longer permitted as the default mode).
  • Contract labour register if contractors or security agencies are engaged.
  • Records of double-wage payment for any work on gazetted holidays or declared rest days.

Penalties for Underpayment

Paying below the notified minimum wage continues to be a violation under the savings clause of the Code on Wages, 2019. Consequences include:

  • Back-wage liability for every affected employee and every underpaid month.
  • Statutory penalties applicable under the Code on Wages, 2019 framework.
  • Prosecution and potential imprisonment in repeat cases.
  • Employee complaints and labour department audits triggered by any staff grievance.

Where it goes wrong: Underpayment is most often discovered when HR maps designations loosely, misses VDA revisions, applies the wrong zone for employees based at multiple locations, or fails to identify Annex-3 (newly added) industry coverage.

Automate Wage Compliance in Payroll

As your team grows across zones and skill categories, manual checks become a risk. factoHR Bangalore lets payroll teams configure Karnataka wage floors directly in the payroll setup so underpayment is flagged automatically before salary approval.

  • Map each employee to their zone, skill category, and applicable schedule (Annex-1 / 2 / 3).
  • Set minimum wage thresholds that update with each annual VDA revision.
  • Validate payroll before the approval cycle to catch shortfalls early.
  • Maintain wage registers, payslips, and audit trails in one place.
  • Configure double-wage rules for overtime and gazetted holidays automatically.

Minimum Wage Compliance

Automate Karnataka Minimum Wage Checks Before Payroll Runs

factoHR Bangalore validates wages by zone, category, and VDA, so underpayment risks are caught before salary approval, not after an inspection.

Previous Notification: Shops & Commercial Establishments (For Reference)

The earlier schedule used a 4-zone classification with the following wage rates. Verify whether this schedule still applies separately for your industry, or has been subsumed by the 22 May 2026 notification.

Category Zone I
Bangalore BBMP
Zone II Zone III Zone IV
Highly Skilled ₹19,972.60 ₹19,238.15 ₹18,538.68 ₹17,872.51
Skilled ₹18,570.47 ₹17,902.79 ₹17,266.91 ₹16,661.30
Semi-Skilled ₹17,295.81 ₹16,688.83 ₹16,110.75 ₹15,560.20
Unskilled ₹16,137.03 ₹15,585.23 ₹15,059.70 ₹14,559.20

Shops & Commercial Establishments (Previous Schedule, verify if still applicable). Monthly rates include VDA of ₹4,549.20/month uniform across zones.

Previous Notification PDF Shops & Commercial Establishments schedule (4-zone) for reference.

Security Guard Agency Schedule (Previous, Verify if Still Applicable)

Employers engaging a Security Guard Agency were previously covered by a separate scheduled employment. VDA = ₹3,254.40/month under the prior schedule. Verify whether this schedule remains separate or has been brought under the 22 May 2026 general notification.

Designation Zone Basic/month DA/month Total/month
Manager / Personal OfficerZone 1₹18,254.90₹3,254.40₹21,509.30
Security Officer / Field OfficerZone 1₹17,385.63₹3,254.40₹20,640.03
Asst. Manager / Asst. Personal ManagerZone 1₹17,385.63₹3,254.40₹20,640.03
Security Inspector / Supervisor / ASOZone 1₹16,058.30₹3,254.40₹19,312.70
AccountantZone 1₹16,058.30₹3,254.40₹19,312.70
Cashier / Sr. Clerk / Steno / Computer Op. / Store Keeper / Tel. Op.Zone 1₹16,058.30₹3,254.40₹19,312.70
Head Guard / Intelligence & Fire FightingZone 1₹15,742.26₹3,254.40₹18,996.66
Security Guard / Lady Guard / Lady SearcherZone 1₹15,742.26₹3,254.40₹18,996.66
DriverZone 1₹15,742.26₹3,254.40₹18,996.66
Typist / Data Entry Operator / ClerkZone 1₹15,742.26₹3,254.40₹18,996.66
CleanerZone 1₹14,847.65₹3,254.40₹18,102.05
Office Boy / Peon / Watchman / Sweeper / AttenderZone 1₹14,847.65₹3,254.40₹18,102.05
Manager / Personal OfficerZone 2₹17,385.60₹3,254.40₹20,640.00
Security Officer / Field OfficerZone 2₹16,557.74₹3,254.40₹19,812.14
Asst. Manager / Asst. Personal ManagerZone 2₹16,557.74₹3,254.40₹19,812.14
Security Inspector / Supervisor / ASOZone 2₹15,293.62₹3,254.40₹18,548.02
AccountantZone 2₹15,293.62₹3,254.40₹18,548.02
Cashier / Sr. Clerk / Steno / Computer Op. / Store Keeper / Tel. Op.Zone 2₹15,293.62₹3,254.40₹18,548.02
Head Guard / Intelligence & Fire FightingZone 2₹14,992.63₹3,254.40₹18,247.03
Security Guard / Lady Guard / Lady SearcherZone 2₹14,992.63₹3,254.40₹18,247.03
DriverZone 2₹14,992.63₹3,254.40₹18,247.03
Typist / Data Entry Operator / ClerkZone 2₹14,992.63₹3,254.40₹18,247.03
CleanerZone 2₹14,140.62₹3,254.40₹17,395.02
Office Boy / Peon / Watchman / Sweeper / AttenderZone 2₹14,140.62₹3,254.40₹17,395.02

Source: Karnataka Government Notification No. DES/SIP/PWX/24/2025, dated 17/02/2026. CPI 2026 = 10,328 (Base year 2018=100). Retained for historical reference.

Official PDF Notifications

Two government notifications are available for download:

Latest Notification: KA 411 L W.B.W.I 2023 (22 May 2026) 81 scheduled employments | All 3 zones | Signed by S. Tulasi, Under Secretary, Labour Department
Previous Notification: Shops & Commercial Schedule 4-zone schedule, retained for historical reference. Verify if separately applicable.

Frequently Asked Questions

Under the latest notification (KA 411 L W.B.W.I 2023, dated 22 May 2026), the daily minimum wage ranges from ₹817.36/day (unskilled, Zone 3) to ₹1,316.36/day (highly skilled, Zone 1). Monthly equivalents range from ₹21,251.30 to ₹34,225.42.
For Zone 1 (BBMP / Greater Bengaluru Authority notified areas), the minimum wages in Bangalore range from ₹25,714.07 per month for unskilled workers to ₹34,225.42 for highly skilled workers, under the 22 May 2026 notification.
Zone 1 covers BBMP (Greater Bengaluru Authority) notified areas. Zone 2 covers other city/municipal corporations and all district headquarters across Karnataka (Mysuru, Hubballi-Dharwad, Belagavi, Mangaluru, and others). Zone 3 covers all remaining areas: rural towns, smaller localities, and areas not covered under Zone 1 or 2.
The latest notification (KA 411 L W.B.W.I 2023, dated 22 May 2026) covers 81 scheduled employments across 3 zones. This includes 61 general industries in Annex-1, special/hazardous employments in Annex-2 (sanitation, thermal power, foundries, chemicals), and 18 newly added industries in Annex-3 including e-commerce, courier services, public amusement parks, mobile tower installation, and computer/cyber centres.
The Code on Wages 2019 was implemented by the Central Government from 21 November 2025 and repeals the Minimum Wages Act 1948 and three other central labour laws. However, under the savings clause of the Code (Section 69(2)) read with Section 6 of the General Clauses Act 1897, all existing state government wage notifications continue to remain legally valid and enforceable until specifically replaced. The Karnataka rates notified on 22 May 2026 are fully binding.
The Consumer Price Index (CPI) base reference point is 9,469. If CPI rises above this level, an additional ₹4 per day is payable to every worker category. VDA is revised annually every April, based on the previous 12 months’ average CPI. The formula: Monthly VDA = Annual increase in CPI index points × ₹0.04 × 30 days.
Yes. Under the 22 May 2026 notification, any work beyond scheduled hours must be paid at double the regular wage rate. Similarly, workers employed on gazetted holidays or declared rest days are entitled to double the minimum wage.
No. An employee agreement, offer letter, or contract cannot waive statutory minimum wage rights. The notified minimum wage is a legal floor and cannot be contracted away, regardless of what either party agrees to in writing.
Monthly workers are paid on the basis of 26 working days per month. Part-time workers (less than 8 hours/day) are paid proportionally from the daily or monthly rate. Piece-rate workers must receive at least the daily minimum wage for 8 hours of work.
Wages must be paid by cheque or direct bank transfer under the 22 May 2026 notification. Cash payment is no longer the default permitted mode. Wage rounding follows the rule: fractions below 50 paise are rounded down, 50 paise and above are rounded up to ₹1.
The latest Karnataka labour rate 2026 is set under Government Notification KA 411 L W.B.W.I 2023, dated 22 May 2026. Daily rates range from ₹817.36 to ₹1,316.36, and monthly rates from ₹21,251.30 to ₹34,225.42, depending on zone (1, 2, or 3) and skill category (unskilled, semi-skilled, skilled, or highly skilled). The notification covers 81 scheduled employments and applies state-wide.

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