The Government of Karnataka has issued a revised Minimum Wages Notification dated 22 May 2026, introducing a unified framework for minimum wages across scheduled employments in the state. The notification revises wage rates, classifies workers by skill level and geographic zone, adds new scheduled employments, and provides guidance on Variable Dearness Allowance (VDA) and wage payment requirements.
For employers, these changes may require reviewing payroll structures, employee classifications, and statutory compliance processes to ensure wages meet the revised minimum standards.
What Has Changed?
The notification introduces several significant changes to Karnataka’s minimum wage framework.
1. Unified Minimum Wage Structure
Previously, Karnataka issued separate notifications for various scheduled employments. Under the latest notification, the Government has adopted a single unified minimum wage notification covering multiple scheduled employments.
This approach aims to reduce disparities in minimum wage rates across industries while providing a more standardized wage structure.
2. Coverage of Scheduled Employments
The notification covers:
- Existing scheduled employments
- Newly added employments introduced for the first time
Examples include:
Manufacturing
Construction
Hotels & Restaurants
Security Agencies
Electronics
Pharmaceutical Establishments
Cooperative Societies
Private Educational Institutions
E-commerce & Courier Services
Computer & Cyber Centres
Poultry & Animal Husbandry
MSMEs
Ready-Mix Concrete Establishments
Employers should determine whether their business falls within the applicable scheduled employments to ensure compliance with the revised minimum wage requirements.
Three Zone Classification
The notification classifies Karnataka into three wage zones. Minimum wage rates vary depending on the geographical location of the establishment.
| Zone | Coverage |
|---|---|
| Zone 1 | Areas under the Greater Bengaluru Authority. |
| Zone 2 | Other Municipal Corporations and District Headquarters. |
| Zone 3 | Remaining areas of Karnataka. |
Employers should identify the applicable wage zone for each establishment before calculating minimum wages, as the prescribed wage rates differ across Zone 1, Zone 2, and Zone 3.
Four Skill Categories
The notification classifies employees into four skill levels. Employers should assess the nature of work performed by each employee and assign the appropriate skill category to ensure compliance with the prescribed minimum wage rates.
Unskilled
Semi-Skilled
Skilled
Highly Skilled
Compliance Tip
Employers should ensure that employees are classified according to the nature of work performed and the definitions provided in the notification. Incorrect skill classification may lead to payroll inaccuracies, non-compliance with minimum wage requirements, and potential statutory liabilities.
Revised Minimum Wage Rates
The notification specifies revised monthly minimum wages based on the employee’s skill category and the applicable wage zone. Employers should ensure that payroll systems are updated to reflect the correct minimum wage rates for each category.
| Skill Category | Zone 1 | Zone 2 | Zone 3 |
|---|---|---|---|
| Highly Skilled | ₹31,114.02 | ₹28,285.47 | ₹25,714.07 |
| Skilled | ₹28,285.47 | ₹25,714.07 | ₹23,376.43 |
| Semi-Skilled | ₹25,714.07 | ₹23,376.43 | ₹21,251.30 |
| Unskilled | ₹23,376.43 | ₹21,251.30 | ₹19,319.36 |
Important Note
These are the general Schedule 4 minimum wage rates applicable to employments covered under Schedules 1 and 3, unless a separate wage structure has been specifically prescribed under the Karnataka Minimum Wages Notification.
Special Wage Rates
The Karnataka Minimum Wages Notification prescribes dedicated wage structures for certain scheduled employments where the nature of work requires separate wage provisions. Employers operating in these industries should refer to the applicable schedule before determining employee wages.
Sanitation Workers
Electricity Generation Plants
Foundries
Chemical Fertilizer Manufacturing
Pesticide Manufacturing
Insecticide Manufacturing
Compliance Tip
Employers engaged in these sectors should refer to the specific wage schedules applicable to their workforce rather than relying solely on the general minimum wage rates. Reviewing the relevant schedule helps ensure accurate payroll processing and compliance with the Karnataka Minimum Wages Notification.
Special Wage Rates
The Karnataka Minimum Wages Notification prescribes dedicated wage structures for certain scheduled employments where the nature of work requires separate wage provisions. Employers operating in these industries should refer to the applicable schedule before determining employee wages.
Sanitation Workers
Electricity Generation Plants
Foundries
Chemical Fertilizer Manufacturing
Pesticide Manufacturing
Insecticide Manufacturing
Compliance Tip
Employers engaged in these sectors should refer to the specific wage schedules applicable to their workforce rather than relying solely on the general minimum wage rates. Reviewing the relevant schedule helps ensure accurate payroll processing and compliance with the Karnataka Minimum Wages Notification.
Variable Dearness Allowance (VDA)
The Karnataka Minimum Wages Notification provides guidance on the calculation of Variable Dearness Allowance (VDA), which is intended to help minimum wages keep pace with changes in the cost of living.
Key Highlights
- VDA is revised annually.
- It is calculated based on the average Consumer Price Index (CPI) of the previous calendar year.
- The notification specifies the calculation methodology and the applicable VDA rate for CPI increases beyond the prescribed base index.
Payroll Compliance Tip
Employers should incorporate the revised Variable Dearness Allowance (VDA) into payroll calculations whenever updated rates become applicable. Timely implementation helps ensure statutory compliance and accurate wage payments under the Karnataka Minimum Wages Notification.
Important Compliance Requirements
The Karnataka Minimum Wages Notification reiterates several important employer obligations that businesses should follow to maintain compliance with applicable labour laws and ensure fair wage practices.
Equal Pay
Employees performing the same or similar work should receive equal wages regardless of gender or disability status, in accordance with the provisions of the notification.
Overtime
Employees who work beyond the prescribed working hours should be paid overtime wages in accordance with the notification and other applicable labour laws.
Weekly Off & Festival Holidays
Employees required to work on notified weekly off days or festival holidays are entitled to wages and benefits as prescribed under the applicable statutory provisions.
Wage Payment
The notification provides that wages should be paid through cheque or direct bank credit, helping ensure transparency and compliance with statutory wage payment requirements.
Why Employers Should Review Payroll
The revised Karnataka Minimum Wages Notification may affect several HR, payroll, and compliance functions. Employers should review their payroll processes to ensure that employee wages, classifications, and statutory obligations remain aligned with the latest minimum wage requirements.
Key Areas That May Require Review
Employee Skill Classification
Zone Mapping
Minimum Wage Verification
Payroll Calculations
VDA Implementation
Contractor Wage Compliance
Labour Law Compliance Reviews
Compliance Recommendation
Businesses operating across multiple locations in Karnataka should verify whether different wage zones apply to each establishment. Reviewing payroll configurations, employee classifications, and wage calculations can help organizations maintain compliance with the revised notification and reduce the risk of statutory non-compliance.
Recommended Steps for Employers
To support compliance with the revised Karnataka Minimum Wages Notification, employers should review their payroll processes and statutory obligations. The following practical steps can help organizations align their payroll practices with the updated minimum wage requirements.
Employer Compliance Checklist
- Review whether the organisation falls under a scheduled employment covered by the notification.
- Verify employee skill classifications based on the nature of work performed.
- Identify the applicable wage zone for each establishment.
- Compare current employee wages against the revised minimum wage rates.
- Update payroll configurations and salary structures wherever necessary.
- Review contractor and outsourced workforce compliance to ensure statutory wage obligations are being met.
- Maintain documentation supporting employee classifications, wage calculations, payroll records, and statutory compliance.
Taking these proactive measures can help employers improve payroll accuracy, strengthen labour law compliance, and reduce the risk of statutory penalties arising from incorrect wage implementation.
How Futurex Can Help
Managing minimum wage revisions requires close coordination between HR, payroll, and compliance teams. Staying compliant with changing statutory requirements involves accurate employee classification, payroll configuration, wage verification, and ongoing labour law compliance.
Futurex Management Solutions Supports Businesses With
HR Outsourcing
Payroll Audits
Statutory Compliance Support
Our team helps organisations review payroll processes, interpret statutory requirements, and implement compliant payroll practices aligned with applicable labour laws, enabling businesses to reduce compliance risks and improve payroll accuracy.
Disclaimer
This article is intended for general informational purposes only and is based on the English translation of the Karnataka Minimum Wages Notification dated 22 May 2026. The original Kannada notification published in the Karnataka Gazette remains the authoritative legal document. Employers should refer to the official notification and seek professional advice before making payroll, HR, or statutory compliance decisions.
Source: https://futurexsolutions.com/wp-content/uploads/2026/07/Karnataka_Minimum_Wages_22May2026_English_Translation.pdf