The Karnataka government has released the latest minimum wage notification for Shops and Commercial Establishments for the financial year 2025-26. Employers and employees must stay updated with these revisions to ensure compliance with labor laws and fair wage practices.
Understanding Minimum Wages in Karnataka
Minimum wages are the lowest legally permissible wages that employers must pay their employees. These wages are determined by the government based on several economic factors such as the cost of living, inflation rates, and industry-specific conditions. The Minimum Wages Act, 1948 mandates that these rates be reviewed and updated periodically to safeguard workers’ rights and ensure a decent standard of living.
Revised Minimum Wages for Karnataka Shops and Commercial Establishments (2025-26)
The minimum wages for workers in the Shops and Commercial Establishments sector in Karnataka have been revised based on factors such as inflation, cost of living, and industry standards. The new wage structure is applicable across different skill levels—Unskilled, Semi-skilled, Skilled, and Highly Skilled workers.
Key Highlights of the Notification
- Effective Date: The revised minimum wages come into effect from April 1, 2025.
- Coverage: This notification applies to all Shops and Commercial Establishments operating in Karnataka.
- Components of Minimum Wages:
- Basic Wage: The fixed salary component without additional allowances.
- Variable Dearness Allowance (VDA): Adjusted periodically based on the Consumer Price Index (CPI).
- Classification of Workers:
- Unskilled
- Semi-skilled
- Skilled
- Highly Skilled
- Regional Variations: Wages may vary for Bangalore and other districts of Karnataka.
- Legal Compliance: Employers must ensure that they adhere to the revised minimum wages to avoid penalties under labor laws.
Minimum Wages Breakdown for Karnataka (2025-26)
The notification categorizes wages based on different zones within Karnataka. Here’s a detailed breakdown of the revised rates:
Highly Skilled Workers
| Zone | Basic Per Day (₹) | Basic Per Month (₹) | VDA (₹) | Total Per Day (₹) | Total Per Month (₹) |
|---|---|---|---|---|---|
| Zone I | 593.21 | 15,423.40 | 4,113.60 | 751.43 | 19,537.00 |
| Zone II | 564.96 | 14,688.95 | 4,113.60 | 723.18 | 18,802.55 |
| Zone III | 538.06 | 13,989.48 | 4,113.60 | 696.28 | 18,103.08 |
| Zone IV | 512.44 | 13,323.31 | 4,113.60 | 670.66 | 17,436.91 |
Skilled Workers
| Zone | Basic Per Day (₹) | Basic Per Month (₹) | VDA (₹) | Total Per Day (₹) | Total Per Month (₹) |
|---|---|---|---|---|---|
| Zone I | 563.21 | 14,663.40 | 4,113.60 | 721.43 | 18,777.00 |
| Zone II | 534.96 | 13,928.95 | 4,113.60 | 693.18 | 18,042.55 |
| Zone III | 508.06 | 13,229.48 | 4,113.60 | 666.28 | 17,343.08 |
| Zone IV | 482.44 | 12,563.31 | 4,113.60 | 640.66 | 16,676.91 |
Semi-Skilled Workers
| Zone | Basic Per Day (₹) | Basic Per Month (₹) | VDA (₹) | Total Per Day (₹) | Total Per Month (₹) |
|---|---|---|---|---|---|
| Zone I | 533.21 | 13,903.40 | 4,113.60 | 691.43 | 18,017.00 |
| Zone II | 504.96 | 13,168.95 | 4,113.60 | 663.18 | 17,282.55 |
| Zone III | 478.06 | 12,469.48 | 4,113.60 | 636.28 | 16,583.08 |
| Zone IV | 452.44 | 11,803.31 | 4,113.60 | 610.66 | 15,916.91 |
Unskilled Workers
| Zone | Basic Per Day (₹) | Basic Per Month (₹) | VDA (₹) | Total Per Day (₹) | Total Per Month (₹) |
|---|---|---|---|---|---|
| Zone I | 503.21 | 13,143.40 | 4,113.60 | 661.43 | 17,257.00 |
| Zone II | 474.96 | 12,408.95 | 4,113.60 | 633.18 | 16,522.55 |
| Zone III | 448.06 | 11,709.48 | 4,113.60 | 606.28 | 15,823.08 |
| Zone IV | 422.44 | 11,043.31 | 4,113.60 | 580.66 | 15,156.91 |
Legal Implications of Non-Compliance
Employers who fail to comply with the new wage structure could face legal action, including fines and penalties under labor laws. To avoid potential litigation, businesses must ensure that all employees receive at least the prescribed minimum wages in accordance with the Karnataka Shops and Commercial Establishments Act.
Conclusion
The Karnataka Shops and Commercial Establishments Minimum Wages 2025-26 notification aims to balance employer responsibilities and employee welfare. Businesses must stay compliant with these changes to avoid legal issues and foster a fair work environment. Employers operating in Karnataka should promptly update their payrolls and ensure transparency in wage disbursement in line with the latest minimum wage notification.
For the official wage rates and further details, refer to the government notification here.
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