Minimum Wages in Karnataka 2026-27: New Rates by Zone and Skill, VDA and the Court Challenge

Karnataka rewrote its minimum wages in 2026. Instead of dozens of separate notifications, each with its own basic rate and a yearly VDA, a single notification dated 22 May 2026 now sets one table of rates by skill and zone for most scheduled employments, with increases of up to about 60% for some workers. Employers have challenged it in the High Court, the state government has talked about reviewing it, and unions have fought both moves — but the rates are in force. This guide sets out the 2026-27 figures, how to apply them in a Bengaluru, Mysuru or district payroll, and where the litigation stands.

Quick answer

Karnataka's minimum wages for 2026-27 come from the notification dated 22 May 2026, effective immediately. An unskilled worker in Zone 1 (Greater Bengaluru) must get at least ₹23,376.43 a month (₹899.09 a day); in Zone 2 it is ₹21,251.30 and in Zone 3 ₹19,319.36. When we last checked, on 7 October 2026, no court had stayed the notification.

• Highly skilled, Zone 1: ₹31,114.02 a month; skilled ₹28,285.47

• Three zones replace four: Greater Bengaluru, other corporations and district HQs, rest of the state

• VDA is revised every 1 April — 4 paise a day per point above 9469; the next revision is due 1 April 2027

• Employers' challenge pending; interim relief to employers declined in September 2026

Karnataka minimum wage rates for 2026-27

The table below is Schedule 4 of the 22 May 2026 notification, issued under sections 3(1)(b) and 5(1)(b) of the Minimum Wages Act, 1948 by the Department of Labour. It applies to every job category in the employments listed in Schedule 1 (existing employments being revised) and Schedule 3 (employments added for the first time). The notification fixes both daily and monthly figures; the hourly and overtime figures are our own calculation, dividing the daily rate by an eight-hour day.

The table is built on a simple ladder: each step up in skill, and each step up in zone, adds about 10%. That is why the Zone 1 semi-skilled rate equals the Zone 2 skilled rate, and the Zone 3 highly skilled rate equals the Zone 1 semi-skilled rate. The totals already include the accumulated VDA; the notification says the government factored in two years of inflation because the revision process had started in 2022.

Karnataka minimum wages at a glance (2026-27)

₹23,376.43

Unskilled, Zone 1 (Bengaluru)

₹899.09/day

₹19,319.36

Unskilled, Zone 3

₹743.05/day

₹31,114.02

Highly skilled, Zone 1

22 May 2026

Notification date

effective immediately

Special rates for sanitation and power plants

Schedule 2 sets higher, separate tables for some hazardous or specialised work. Workers who clean underground drains, toilets and bathrooms with machine assistance get ₹25,714.07 a month in Zone 1, ₹23,376.43 in Zone 2 and ₹21,251.30 in Zone 3. At thermal power stations, an unskilled worker gets ₹25,714.07 and a highly skilled one ₹34,225.42 a month; hydro, solar and wind plants, foundries and fertiliser and pesticide manufacturers have their own scales. Some news reports quote these Schedule 2 figures as if they were the general rates, which is why you may see Zone 1 unskilled wages of over ₹25,000 online. For most employers the general Schedule 4 table above is the one that applies.

Karnataka minimum wage calculator

Zone / employment

Zone 1Zone 2Zone 3

Skill level / category

UnskilledSemi-skilledSkilledHighly skilled

Days worked in the month

Overtime hours

Actual wage paid (₹/month, optional)

Months underpaid

A full month is 26 working days; the daily rate is the monthly rate ÷ 26 where the order fixes only a monthly figure.

Monthly minimum (26 days)₹23,376.43

Daily rate₹899.09

Pay for 26 days₹23,376.43

Overtime at 2× (₹224.77/hour)₹0

Minimum gross pay this month₹23,376.43

Overtime is paid at twice the ordinary rate (daily rate ÷ 8 hours). Arrears assume the same shortfall in every month since the rates took effect on 22 May 2026; a claim under the Code on Wages must generally be filed within 3 years. Estimates only — check the order for your employment.

What changed: from four zones and old basics to one table

Until May 2026, Karnataka fixed minimum wages employment by employment. Each of more than 80 scheduled employments had its own basic rates, four zones and job lists, and every April the Labour Department published a VDA for the year. For shops and commercial establishments, for example, the April 2026 VDA of ₹4,549 a month took an unskilled worker in old Zone I to ₹16,136.83. Under the new table the same worker in Bengaluru is owed ₹23,376.43 — an increase of about 45%.

The May notification made four structural changes:

• One rate table for all covered employments. Schedule 1 lists 61 existing employments being revised, Schedule 3 adds 18 new ones — including e-commerce and courier services, non-teaching staff in private schools and colleges, offices of religious institutions, amusement parks, mobile-tower maintenance, computer and cyber centres, LPG distribution and ready-mix concrete plants — and Schedule 4 sets one table for all of them.
• Four skill categories — unskilled, semi-skilled, skilled and highly skilled — defined in the notification, with Schedule 5 listing hundreds of job titles under each.
• Three zones instead of four, with Greater Bengaluru alone in Zone 1.
• A new VDA base: 4 paise a day for every point the annual average consumer price index rises above 9469, revised every 1 April.

Some labour-intensive, piece-rated employments — beedi making, cashew processing, handloom and powerloom, loading and unloading, agarbatti, agriculture, brick making and others — are not on the common table. The notification says their rates will be revised separately through the committee method under section 8(1)(a) of the Code on Wages. Until that happens, check the existing notification for those employments.

The court history and the 2026 challenge

The 2026 notification is the end of a dispute that began in 2022. Here is the sequence, taken from the notification's own recital and court reports.

In 2022-23 the government raised minimum wages for 34 employments by 5–10%. The All India Trade Union Congress challenged those notifications (WP 13103/2023 and connected cases), and in September and October 2023 a single judge of the High Court quashed them, directing the government to recalculate using the Supreme Court's Reptakos Brett guidelines. Employer associations appealed, and on 13 December 2024 a Division Bench set the single judge's order aside and sent the matter back. While it was pending, the government published one unified draft notification on 11 April 2025 (with a corrigendum on 19 April), and on 16 April 2025 the court closed the petitions, leaving parties free to challenge the final notification. The Minimum Wages Advisory Board considered objections on 29 July and 28 August 2025.

The Code on Wages then came into force on 21 November 2025, repealing the Minimum Wages Act. The government relied on section 69(2) of the Code and section 6 of the General Clauses Act, which save steps already taken under a repealed law, and issued the final notification on 22 May 2026.

The Karnataka Employers' Association and another employer challenged it within days. Their main arguments are that the notification was made under a repealed Act, that the Code on Wages has no concept of "scheduled employments", and that a common rate for all industries with increases of up to 60% is arbitrary. In June 2026 the High Court asked for the Union Government to be made a party. In July 2026 the state cabinet said it would review the hike, which trade unions opposed. Between 29 July and 28 August 2026, three government circulars told departments and local bodies to defer the new rates for outsourced and contract staff; on 19 September 2026 the High Court stayed those circulars in a petition by AITUC and others. In late September the court declined interim relief to the employers while related writ appeals (WA 1684 and 1685 of 2026) were before a Division Bench.

What this means for you: a notification stays binding until a court sets it aside or the government replaces it. When we last checked, on 7 October 2026, neither had happened. If you are not paying the May 2026 rates, you are building up arrears from 22 May 2026 that you would owe if the notification is upheld.

Karnataka minimum wage dispute — key dates

2022-23

5–10% revisions for 34 employments

Sep–Oct 2023

Single judge quashes them (WP 13103/2023, AITUC)

13 Dec 2024

Division Bench sets aside and remands

11 Apr 2025

Unified draft notification published

21 Nov 2025

Code on Wages in force; Minimum Wages Act repealed

22 May 2026

Final notification — new rates effective immediately

19 Sep 2026

High Court stays circulars deferring the rates for contract staff

1 Apr 2027

First annual VDA revision due on the new rates

Zones 1, 2 and 3 in 2026: which applies to your workplace?

The notification defines the zones in one line each:

• Zone 1 — areas under the jurisdiction of the Greater Bengaluru Authority.
• Zone 2 — all other municipal corporations in the state and all district headquarters. That covers cities such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi, Kalaburagi, Ballari, Vijayapura, Davanagere, Shivamogga and Tumakuru, plus every district headquarters town.
• Zone 3 — everywhere else.

The zone follows the place where the employee works. A Bengaluru company with a warehouse near Hosur Road inside the Greater Bengaluru Authority area pays Zone 1 rates there, but a factory in an industrial area outside that boundary — for example in a taluk town that is neither a corporation nor a district headquarters — is Zone 3. Check the boundary for each site, especially on the city's growing edges.

Which skill category does each job fall into?

The notification defines the four categories by the nature of the work. Unskilled workers do simple, physical tasks that need little judgement or experience. Semi-skilled workers do defined, routine tasks under someone else's direction, including simple work with machines. Skilled workers carry responsibility, use their own judgement and have the knowledge, qualifications and experience of a trade. Highly skilled workers have exceptional ability and supervise others, including skilled workers.

Schedule 5 then lists job titles under each category. Among the entries legible in the published copy: peons, office boys, watchmen, cleaners, packers, loaders and unarmed security guards are unskilled; data-entry operators, computer operators, receptionists, senior clerks and heavy-vehicle and tractor drivers are semi-skilled; electricians, fitters, carpenters, plumbers, registered nurses, pharmacists and most supervisors are skilled; and managers, engineers, foremen and programmers are highly skilled. The notification adds that a worker in a category not listed must be paid the same as a worker doing the same kind of work.

Worked payroll examples for 2026 in ₹

Example 1 — an unskilled office assistant in Bengaluru (Zone 1). Manjunath is employed directly at the minimum of ₹23,376.43. In October he works 6 overtime hours.

• Overtime at double the normal rate: 6 × ₹224.77 = ₹1,348.62
• Gross wages: ₹23,376.43 + ₹1,348.62 = ₹24,725.05
• Employee PF at 12% of wages on his basic of ₹23,376.43 (overtime excluded; below the ₹25,000 a month ceiling): ₹2,805.17 (and the same from you)
• ESI: his wages are now above ₹21,000/month, so a new joiner on this rate is outside ESI. An existing ESI member stays covered until the end of the current contribution period
• Professional tax: nil, because Karnataka levies PT only from ₹25,000 a month — see our professional tax guide
• Net pay ≈ ₹24,725.05 − ₹2,805.17 = ₹21,919.88

Example 2 — a skilled electrician in Hubballi (Zone 2) with leave. Her minimum is ₹25,714.07, or ₹989.00 a day. She takes 2 days of unpaid leave: 2 × ₹989.00 = ₹1,978, so the month's minimum is ₹23,736.07. That is still above the ESI wage limit of ₹21,000/month, so the same ESI point applies as in Example 1. Overtime for her would be ₹247.25 an hour.

Example 3 — a daily-rated helper in a Zone 3 town. A helper at a rice mill in a taluk town works 20 days in a month. Minimum pay = 20 × ₹743.05 = ₹14,861. ESI does apply at this level (0.75% ≈ ₹111.46 from the worker and 3.25% ≈ ₹482.98 from you).

Example 4 — arrears from 22 May. A shop in Mysuru kept paying its unskilled helpers ₹15,585 a month — the old Zone II shops rate — after 22 May 2026. The Zone 2 unskilled minimum is now ₹21,251.30, a gap of about ₹5,666 a month per helper. From 22 May to 30 September that adds up to roughly ₹24,500 per helper. If the shop uses a contractor for cleaning or security, those workers are owed the new rate too, and the shop as principal employer shares the risk.

Karnataka minimum wage compliance checklist

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• Check whether each unit's employment is in Schedule 1, 2 or 3 — or is a piece-rate employment still on its old notification
• Assign each workplace to Zone 1, 2 or 3 using the Greater Bengaluru Authority, corporation and district HQ boundaries
• Map every job to one of the four skill categories using Schedule 5
• Pay at least the 22 May 2026 rate and calculate arrears from that date if you haven't
• Pay overtime and work on weekly offs or festival holidays at double the normal rate
• Pay wages by cheque or bank credit and issue wage slips
• Review ESI coverage for staff whose wages have crossed the limit
• Collect proof that security, housekeeping and manpower contractors pay the new rates

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VDA, daily rates, overtime and payment rules

The notification's general conditions set out how to apply the table:

• VDA once a year. VDA is computed as on 1 April each year from the average CPI for the previous calendar year, at 4 paise a day per point above 9469. For monthly-paid staff, monthly VDA = change in points × rate × 30; for daily-rated workers it is converted using 26 days.
• Daily rate = monthly ÷ 26, which includes pay for four weekly offs or holidays. The notification says a fraction is rounded up.
• Eight-hour day. A day's work means eight hours; a shorter engagement is paid proportionately, and a piece-rate worker's earnings for eight hours can't be less than the time-rate daily wage.
• Double pay for overtime beyond fixed hours and for work on the weekly off or a festival holiday.
• Equal pay for women, men, transgender persons and persons with disabilities doing the same or similar work.
• Payment by cheque or direct bank credit.

These sit alongside the Code on Wages: monthly wages must be paid by the seventh day of the following month and final dues within two working days of exit (section 17), and you must keep registers and issue wage slips (section 50).

Common mistakes Karnataka employers are making in 2026

Using the February 2026 VDA tables. Many payroll tools still carry the four-zone, basic-plus-VDA tables issued for April 2026. For covered employments those were replaced from 22 May 2026.

Quoting the power-plant table. Schedule 2 rates for thermal power stations and sanitation work are higher than the general table. Don't use them for ordinary staff — and don't use the general table for drain and toilet cleaning staff, who are owed the higher Schedule 2 rate.

Waiting for the court. No stay is in force. Waiting only adds to arrears, compensation exposure and inspection risk.

Ignoring the ESI and PF knock-on. Higher wages can take workers out of ESI and change your PF and gratuity costs. Our gratuity guide shows how last-drawn wages drive the payout.

Assuming neighbouring states match. Karnataka's new rates are among the highest in India — well above those in Maharashtra and Gujarat. Compare our guides to minimum wages in Maharashtra and minimum wages in Gujarat.

Unskilled worker, top urban zone — Karnataka vs other states

State	Monthly minimum	Period	Structure
Karnataka (Zone 1, Bengaluru)	₹23,376.43	From 22 May 2026	Common table; VDA each April
Maharashtra (Zone I, shops)	₹14,155	Jul–Dec 2026	Basic + special allowance, January and July
Gujarat (Zone I)	₹13,637	Oct 2026–Mar 2027	Daily basic + VDA, April and October
West Bengal (Zone A, shops)	₹10,558	Jul–Dec 2026	Half-yearly circulars, January and July

Karnataka (Zone 1, Bengaluru)

Monthly minimum

₹23,376.43

Period

From 22 May 2026

Structure

Common table; VDA each April

Maharashtra (Zone I, shops)

Monthly minimum

₹14,155

Period

Jul–Dec 2026

Structure

Basic + special allowance, January and July

Gujarat (Zone I)

Monthly minimum

₹13,637

Period

Oct 2026–Mar 2027

Structure

Daily basic + VDA, April and October

West Bengal (Zone A, shops)

Monthly minimum

₹10,558

Period

Jul–Dec 2026

Structure

Half-yearly circulars, January and July

What if a worker is underpaid?

Under section 45 of the Code on Wages, a worker or union can claim unpaid minimum wages within 3 years, and the authority can add compensation of up to 10 times the claim. Paying below the minimum is an offence under section 54: a fine of up to ₹50,000 for a first offence and up to ₹1 lakh fine and/or 3 months' imprisonment for a repeat within five years. If you decide to pay arrears, put them on a separate line of the wage slip with the period they cover — our free salary slip generator makes that easy.

Official links

• Karnataka Labour DepartmentNotifications and circulars
• Karnataka e-Gazette (e-Rajyapatra)Search for the 22 May 2026 notification
• Karmika Spandana — New Labour Codes
• Notification dated 22 May 2026 — English working translation (secondary)
• The Code on Wages, 2019 (India Code)

What to do next

Map each worker to the right zone and skill category, bring pay up to the 22 May 2026 rates if you haven't, and work out arrears from that date. Then keep watching two dates: the High Court hearings on the employers' challenge, which could change the position, and 1 April 2027, when the first VDA revision on the new rates is due. If you run payroll in several states, our guide to minimum wages in West Bengal covers the half-yearly system used in the east.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the minimum wage in Karnataka for 2026-27?

Under the notification dated 22 May 2026, which took effect immediately, an unskilled worker must get at least ₹23,376.43 a month in Zone 1 (Greater Bengaluru), ₹21,251.30 in Zone 2 and ₹19,319.36 in Zone 3. Highly skilled workers in Zone 1 get ₹31,114.02. The same table applies to all the scheduled employments it covers.

Has the Karnataka High Court stayed the new minimum wages?

No. Employers led by the Karnataka Employers' Association challenged the 22 May 2026 notification, but when we last checked, on 7 October 2026, the High Court had not stayed it and had declined interim protection to employers in September 2026. It also stayed government circulars that tried to defer the new rates for outsourced and contract staff. The notification is therefore enforceable while the case continues.

Which areas are Zone 1, Zone 2 and Zone 3 in Karnataka?

Zone 1 is the area under the Greater Bengaluru Authority. Zone 2 covers all other municipal corporations in the state — such as Mysuru, Mangaluru, Hubballi-Dharwad, Belagavi and Kalaburagi — and every district headquarters town. Zone 3 is the rest of Karnataka. The old four-zone system no longer applies to the employments covered by the notification.

How is VDA calculated in Karnataka?

VDA is revised once a year from 1 April, using the average Consumer Price Index for the twelve months of the previous calendar year. Workers get 4 paise a day per point above 9469. For monthly-paid workers, the monthly VDA is the change in points × the rate × 30. The first revision on top of the May 2026 rates is due from 1 April 2027.

What were the minimum wages in Karnataka for 2025-26?

In 2025-26 Karnataka still used separate notifications for each scheduled employment, with four zones and an annual VDA on top of old basic rates. For shops and commercial establishments, the April 2026 VDA alone took an unskilled Zone I worker to ₹16,136.83 a month. The 22 May 2026 notification replaced that structure with one common table.

Do Karnataka minimum wages apply to IT companies and startups in Bengaluru?

They apply to the scheduled employments listed in the notification, which include shops and commercial establishments, security agencies, hotels, e-commerce and courier services and many manufacturing processes. Support staff such as housekeeping, security, drivers and office assistants — whether employed directly or through contractors — must get at least the Zone 1 rate for their skill category.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Notification No. KAI 411 LWA 2023 dated 22.05.2026 — revision of minimum wages (English working translation of the Kannada gazette notification) — Department of Labour, Government of Karnataka (translation published by Futurex Solutions) · accessed 7 October 2026
2. 2.Minimum Wages (Basic) Revision – Karnataka – 22.05.2026 — Ascent HR · accessed 7 October 2026
3. 3.Karnataka Minimum Wages for Shops and Commercial Establishments, 1 April 2026 to 31 March 2027 (VDA ₹4,549) — SGCMS · accessed 7 October 2026
4. 4.Karnataka High Court calls for Centre's response to petition challenging State's minimum wage hike (2 June 2026) — Bar & Bench · accessed 7 October 2026
5. 5.Karnataka High Court issues notice on employers' plea against minimum wage hike notification (3 June 2026) — LiveLaw · accessed 7 October 2026
6. 6.Karnataka HC stays circulars deferring revised minimum wages for outsourced, contract workers (19 September 2026) — Bar & Bench · accessed 7 October 2026
7. 7.Karnataka High Court refers employers' challenge to minimum wage hike, declines interim relief — LiveLaw · accessed 7 October 2026
8. 8.Trade unions oppose Karnataka govt's move to review hike in minimum wages (1 July 2026) — The News Minute · accessed 7 October 2026
9. 9.The Code on Wages, 2019 (No. 29 of 2019) — India Code, Legislative Department · accessed 7 October 2026
10. 10.Government announces implementation of the four Labour Codes (21 Nov 2025) — PIB — Ministry of Labour & Employment · accessed 7 October 2026