The Government of Karnataka issued revised minimum wage rates vide notification dated 22.05.2026. The revision process was delayed due to ongoing litigation, objections, and consideration by the Karnataka Minimum Wages Advisory Board.
The notification appears to account for inflationary impact during the intervening period and also prescribes a separate methodology for calculation of Dearness Allowance (DA/VDA).
The notification refers to a Consumer Price Index (CPI) base of 9469 points and a revised index of 10328 points, resulting in a differential of 859 points.
As per the prescribed formula:
859 × ₹0.04 × 30 days = ₹1,030.80 per month
Key observations regarding Dearness Allowance:
- Schedule 4 prescribes revised minimum wage rates based on skill category and zone classification.
- The notification separately provides that Dearness Allowance shall be payable at the rate of 4 paise per day for every point increase over 9469 CPI points.
- The notification separately prescribes DA calculation: “A dearness allowance shall be paid to all categories of workers at the rate of four (4) paise per day for every point in which the consumer price index exceeds 9469 points. The calculation shall be made once a year on 1st April…”
- Accordingly, the current estimated DA/VDA works out to approximately ₹1,031 per month.
- However, since the notification drafting is not entirely free from ambiguity and legal proceedings are ongoing, employers may continue monitoring for any formal clarification or judicial interpretation.
Illustrative Monthly Minimum Wage Position w.e.f 22.05.2026 in the State of Karnataka for Schedule 4 — For Schedule 1 & Schedule 3 Industries (61 + 18 industries) (including current estimated DA/VDA):
| Skill Category | Zone 1 — Basic Monthly (₹) | Zone 1 — DA monthly (₹) | Zone 1 — Total Monthly (₹) | Zone 2 — Basic Monthly (₹) | Zone 2 — DA monthly (₹) | Zone 2 — Total Monthly (₹) | Zone 3 — Basic Monthly (₹) | Zone 3 — DA monthly (₹) | Zone 3 — Total Monthly (₹) |
| Highly Skilled | 31,114.02 | 1030.80 | 32,144.82 | 28,285.47 | 1030.80 | 29,316.27 | 25,714.07 | 1030.80 | 26,744.87 |
| Skilled | 28,285.47 | 1030.80 | 29,316.27 | 25,714.07 | 1030.80 | 26,744.87 | 23,376.43 | 1030.80 | 24,407.23 |
| Semi-Skilled | 25,714.07 | 1030.80 | 26,744.87 | 23,376.43 | 1030.80 | 24,407.23 | 21,251.30 | 1030.80 | 22,282.10 |
| Unskilled | 23,376.43 | 1030.80 | 24,407.23 | 21,251.30 | 1030.80 | 22,282.10 | 19,319.36 | 1030.80 | 20,350.16 |
Employers are advised to review payroll structures, contractor wage compliance, and statutory contribution impact accordingly.