Status
Mandatory for All Employers
Effective Period
Revised w.e.f. 22 May 2026
Notification
No. KA 411 L W.B.W.I 2023 · 22 May 2026
Issued by the Office of the Labour Commissioner, Government of Karnataka. Applies to every employer registered under Shops & Commercial Establishments in Karnataka. Non-compliance attracts penalty under the Code on Wages, 2019.
Minimum Wages in Karnataka
2026 — Zone-Wise Rates
Official minimum wage rates for Shops & Commercial Establishments across Karnataka’s three zones. Karnataka sharply revised its minimum wages effective 22 May 2026, raising the Basic wage by about 60% and moving from four zones to three. The figures below are the revised Basic wage; a VDA is added on top.
Quick Answer
Karnataka’s revised Basic minimum wages for Shops & Commercial Establishments run from ₹19,319/month (Unskilled, Zone 3) to ₹31,114/month (Highly-skilled, Zone 1 / Bengaluru). A VDA is added on top - e.g. Zone 1 Unskilled total ≈ ₹24,407/month. Effective 22 May 2026.
₹19,319 - ₹31,114
per month · Shops & Commercial Establishments
VDA
Added on topNext revision
Annual VDA revision (April)Last updated: June 2026. Figures are compiled from the latest available notifications and reputable compliance sources and are provided for guidance only. Minimum wages and VDA change frequently - verify against the official notification (Karnataka Labour Department (Karmika Spandana)) before using for payroll.
Basic Wage Rate Card - All 3 Zones
Karnataka Shops & Commercial Establishments - revised Basic monthly wage by skill and zone, effective 22 May 2026. A VDA is added on top (see note).
| Skill Category | Zone 1 (Bengaluru) | Zone 2 | Zone 3 |
|---|---|---|---|
| Unskilled | ₹23,376 | ₹21,251 | ₹19,319 |
| Semi-skilled | ₹25,714 | ₹23,376 | ₹21,251 |
| Skilled | ₹28,285 | ₹25,714 | ₹23,376 |
| Highly-skilled | ₹31,114 | ₹28,285 | ₹25,714 |
These are the revised Basic monthly rates under Notification No. KA 411 L W.B.W.I 2023, effective 22 May 2026. A VDA is added on top - e.g. Zone 1 Unskilled total = ₹23,376 Basic + ₹1,030.80 VDA = ₹24,407/month (the VDA rises by skill). Daily wage ≈ total ÷ 26. Note: this ~60% revision is in force as of June 2026 but is under challenge in the Karnataka High Court (next hearing 3 July 2026) - confirm the current position before payroll use. A separate lower 4-zone VDA schedule also took effect 1 April 2026.
Karnataka Minimum Wage Zones (2026)
In May 2026 Karnataka moved from four zones to three. The rate you must pay depends on where each workplace is located.
Zone 1 — Greater Bengaluru
Areas under the Greater Bengaluru Authority (formerly BBMP) and its urban agglomeration. Zone 1 carries the highest minimum wage rates in the state.
Zone 2 — Corporations & District HQs
Other city/municipal corporations and all district headquarters - Mysuru, Hubballi-Dharwad, Belagavi, Mangaluru, Kalaburagi, Tumakuru, Davanagere, Ballari, Vijayapura and similar.
Zone 3 — Rest of State
All remaining areas of Karnataka - smaller towns and rural localities. Zone 3 carries the lowest of the three notified rates.
What Every Karnataka Employer Must Do
Pay at least the notified zone-wise rate
Use the rate matching each branch’s location - not the head-office zone. Paying below the notified minimum is illegal even if the employee agrees.
Apply the latest VDA / revised rate
Update payroll the moment a new notification or VDA revision is published. Arrears apply from the effective date, not the date you noticed.
Maintain wage & attendance registers
Keep statutory registers, wage slips and muster rolls. Inspectors can demand records for the past several years.
Layer statutory costs correctly
On top of minimum wage, account for PF (12% of basic), ESI (3.25% if wage ≤ ₹21,000), bonus and gratuity provision.
Penalty for Non-Compliance
Under the Code on Wages, 2019 (in force across India from 21 November 2025), paying any worker below the notified minimum wage attracts a fine up to ₹50,000 for a first offence, and imprisonment up to 3 months or a fine up to ₹1,00,000 (or both) for a repeat offence within five years. The employer must also pay the full wage arrears due. Failing to maintain the prescribed wage and attendance registers carries a further fine up to ₹10,000. The Karnataka Labour Department enforces this through Inspector-cum-Facilitator inspections across Bengaluru's IT/ITeS parks, retail, manufacturing and private-security establishments, so Karnataka employers should keep payroll and statutory registers audit-ready year-round.
Source: Code on Wages, 2019 (Act 29 of 2019), Sec. 54 · Karnataka Labour Department (Karmika Spandana)
Download the Karnataka Minimum Wages 2026 Rate Card
Get the full PDF - all zones, every role band, VDA breakdown and an employer compliance checklist. Free, ready for your HR & payroll records.
Frequently Asked Questions
What is the minimum wage in Karnataka in 2026?
For Shops & Commercial Establishments, the revised Basic wage runs from Rs.19,319/month (Unskilled, Zone 3) to Rs.31,114/month (Highly-skilled, Zone 1 / Bengaluru), effective 22 May 2026. A VDA is added on top - for example, Zone 1 Unskilled totals about Rs.24,407/month (Basic Rs.23,376 + VDA Rs.1,030.80).
Which zone does Bengaluru fall under?
Zone 1 - the highest-wage zone. Zone 1 covers the Greater Bengaluru Authority area (formerly BBMP) and its urban agglomeration.
How many minimum wage zones does Karnataka have now?
Three (Zone 1, 2 and 3), down from four. Zone 1 = Greater Bengaluru; Zone 2 = other corporations and all district headquarters; Zone 3 = the rest of the state.
How is the Karnataka minimum wage split into Basic and VDA?
The headline figures (Rs.19,319 to Rs.31,114) are the revised Basic wage. A CPI-linked VDA is added on top - for Zone 1 Unskilled it is about Rs.1,030.80/month (rising by skill), giving a total of about Rs.24,407/month. The VDA is revised every April.
How often are Karnataka minimum wages revised?
The VDA component is revised annually, effective each April. The Basic rates were comprehensively revised effective 22 May 2026.
What is the daily minimum wage in Karnataka?
Daily wage is conventionally calculated as monthly divided by 26 working days. For a Zone 1 Unskilled worker at Rs.23,376/month, that is about Rs.899/day.
Do these rates apply to security guards and construction workers?
Karnataka notifies around 81 scheduled employments. Security and construction were revised together with shops in May 2026 but each has its own schedule and rates - check the specific schedule for those sectors before applying these numbers.
Is the May 2026 Karnataka minimum wage increase actually in force?
Yes - it is in force from 22 May 2026 (Notification No. KA 411 L W.B.W.I 2023). However, it is being challenged in the Karnataka High Court by employer associations; as of June 2026 no stay had been granted, and the matter was listed for further hearing on 3 July 2026. Monitor the position before relying on it for payroll.
What is the penalty for paying below minimum wage in Karnataka?
Under the Code on Wages, 2019: a fine up to Rs.50,000 for a first offence and up to Rs.1,00,000 with imprisonment for a repeat offence within five years, plus full wage arrears.
Does minimum wage include PF and ESI?
No. Minimum wage is the gross amount paid to the worker. On top of it the employer pays PF (12% of basic), ESI (3.25% of gross if wage is up to Rs.21,000), statutory bonus and a gratuity provision.
Explore Minimum Wages Across India
Minimum wages differ by state, zone, skill and industry. Compare Karnataka with other states, or see the full national overview.
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