Minimum Wages in Puducherry (2026): Basic Rates, Dearness Allowance and Worked Pay for Shops, Security, Hotels and Factories

If you run a boutique on Mission Street, a guesthouse in White Town, a security agency in Karaikal or an engineering unit in the Mettupalayam industrial estate, Puducherry's minimum wages come in two parts. A basic rate for each employment, fixed in September 2024, plus a dearness allowance (DA) that changes every 1 April with the Puducherry City price index. Most websites quote only the basic rate and so understate what you must pay by ₹1,458 to almost ₹5,000 a month. This guide takes both parts from the Labour Department's own notifications, works out the 2026-27 totals, and explains the draft wage rules that would move DA to a twice-yearly cycle.

Quick answer

For 2026-27, a helper, peon, watchman or sweeper in a Puducherry shop or establishment must get at least ₹12,589 a month a month — ₹11,131 a month basic (G.O. Ms. No. 09/AIL/Lab./G/2024) plus ₹1,458 a month DA on the declared CPI of 471 points. Security guards get ₹19,296 a month including DA.

• DA = (CPI − base points) × a per-point rupee amount fixed in each notification

• Base is 426 points for shops and 366 for most other employments

• Same rates in Puducherry, Karaikal, Mahe and Yanam

• Daily rate = monthly rate ÷ 26

How Puducherry fixes minimum wages

On 2 September 2024 the Lieutenant-Governor revised minimum wages in 19 scheduled employments through a series of government orders, G.O. Ms. Nos. 09 to 27/AIL/Lab./G/2024. They were published in the Gazette of Puducherry (Extraordinary No. 125) on 20 September 2024 and came into force that day, replacing notifications from 2015 to 2017. The proposals had been published in August 2023 for 60 days of objections, and the Minimum Wages Advisory Board was consulted before the final rates were set.

Each order has the same structure. A schedule gives the basic minimum rate for every class of employee, usually per month for an eight-hour day. A note then adds dearness allowance linked to the average Puducherry City Consumer Price Index (base 2001=100). For every point the index rises above a base figure, the employer pays a fixed rupee amount per month. The DA is recalculated on 1 April each year using the average of the twelve monthly indices from January to December of the previous year.

The Labour Department declares the index to use. Its order No. 1706/Lab/AIL/G/2025, dated 28 April 2026, fixed the average CPI for DA payable in 2026-27 at 471 points and said it applies to every employment notified under the Minimum Wages Act. Those notifications continue under the Code on Wages, in force since 21 November 2025, until new rates are fixed.

Puducherry minimum wages at a glance (2026-27)

471 points

CPI points declared for DA

base 2001=100

₹12,589 a month

Lowest shop band incl. DA

₹19,296 a month

Security guard incl. DA

1 April

DA recalculated each year

Shops and establishments: 2026-27 rates

Shops and establishments are the largest employment. The 2024 schedule (G.O. Ms. No. 09) puts 50 general job titles into five pay bands, plus special categories for chemists, salons, photo studios, opticians, labs, chit funds, lodges and others. Its DA base is the 2023 average of 426 points, at ₹32.40 per point a month. With 471 points, DA for 2026-27 is 45 × ₹32.40 = ₹1,458 a month a month for every band.

Special categories slot into the same bands. A pharmacist in a chemist shop is at ₹11,695 basic; hair dressers, beauticians, watch mechanics, optical mechanics, carpenters in furniture shops and lift-installation technicians are at ₹11,283; photographers, electricians and lab technicians at ₹11,242; room boys in lodges, petrol-bunk operators and warehouse loaders at ₹11,131. A final catch-all puts every general worker in a shop or commercial establishment who isn't listed elsewhere at ₹11,131.

To get a daily rate, divide the monthly total by 26 — ₹12,589 ÷ 26 ≈ ₹484.19 for the lowest band. The notification also says wages already above the minimum must not be cut, and men and women doing the same work must be paid the same.

Puducherry minimum wage calculator

Zone / employment

Shops & establishmentsSecurity services

Skill level / category

Lowest band (helper, peon, watchman)

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)₹12,589

Daily rate (monthly ÷ 26)₹484.19

Pay for 26 days₹12,589

Overtime at 2× (₹121.05/hour)₹0

Minimum gross pay this month₹12,589

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 1 April 2026; a claim under the Code on Wages must generally be filed within 3 years. Estimates only — check the order for your employment.

Security guards, hotels and engineering units

Most other 2024 orders use the 2021 average of 366 points as the DA base. Because the index has risen 105 points since then, the DA in these employments is large — often a quarter of total pay. Use the per-point figure printed in the order for your employment.

Security guards (G.O. Ms. No. 10). DA is ₹45.20 a point, so ₹4,746 a month for 2026-27.

Hotels and restaurants. Five grades, from Grade I (head cooks, biriyani masters, receptionists, cashiers, accountants) at ₹13,014 down to Grade V (cleaners, room attendants, luggage carriers, masalchis, gardeners, page boys) at ₹12,787. DA is ₹46.26 a point, or ₹4,857.30 a month, giving totals of ₹17,871.30 for Grade I and ₹17,644.30 for Grade V. Waiters, bearers, room servers and kitchen assistants are Grade IV at ₹12,835 basic, ₹17,692.30 in total.

General engineering and fabrication. Administrative and supervisory staff are paid per month (₹13,092 for peons, watchmen and security guards up to ₹13,969 for managers and foremen). Workers are paid per day: ₹495 unskilled, ₹502 for helpers with two years in a trade, ₹507 for ITI and trade-certificate holders, and ₹515 skilled. DA is ₹42.35 a point — ₹4,446.75 a month. This order says to multiply daily rates by 30 for a monthly figure and divide monthly DA by 26 for a daily one, so an unskilled worker is owed about ₹666 a day or ₹19,296.75 a month.

The same Gazette issue revises food processing, electronics, chemicals, plastics, leather goods, oil mills, automobile workshops, tailoring, bakeries, rice and flour mills, taxis and autorickshaws, carpentry and blacksmithy, bricks and tiles, and paper products. Look up your employment's basic rate and per-point DA in the Gazette, then apply 471 points.

Working out DA for any employment

The formula is the same in every order:

Calculate a Puducherry minimum wage for 2026-27

1. 1

   Find the basic rate

   Open the September 2024 Gazette (No. 125) and find your employment and the employee's class. Note whether the rate is per month or per day.

2. 2

   Note the base points and per-point DA

   Each order's note gives a base — 426 points (2023) for shops, 366 points (2021) for most others — and a rupee amount per point per month.

3. 3

   Apply the declared CPI

   For 2026-27 the Labour Department declared 471 points. DA = (471 − base) × per-point amount.

   Tip: Shops: 45 × ₹32.40 = ₹1,458. Security: 105 × ₹45.20 = ₹4,746.

4. 4

   Add and convert

   Total = basic + DA. For a daily rate divide the monthly total by 26; where the basic is daily, multiply by 30 for a month (per that order's note).

5. 5

   Re-run every April

   A new CPI is declared each year. Recalculate from 1 April and pay arrears if the order arrives late.

The CPI order for 2026-27 was signed on 28 April 2026, after the 1 April start of the DA year. If you didn't raise wages in April, the difference from 1 April is owed as arrears. Work it out employee by employee — the new monthly total minus what you actually paid, times the months since April — and pay it as a separate "DA arrears" line with the next wages. Arrears are wages for EPF and ESI, so deduct and deposit both in the month you pay them, and keep the calculation sheet with the wage register; it is the first thing an inspector will ask for.

Central-sphere work in Puducherry

If you supply workers to a central government office, a central public sector company, a bank, the port or a railway station in Puducherry, the central minimum wages apply instead. The Centre's area annexure lists the Puducherry urban agglomeration in Area B; Karaikal, Mahe and Yanam fall in Area C. From 1 October 2026, unskilled construction, sweeping and cleaning in the central sphere pays ₹704 a day in Area B and ₹565 in Area C, and unarmed watch and ward pays ₹933 in Area B. Central rates change every April and October; the Puducherry rates change only each April.

The draft Puducherry Code on Wages Rules, 2026

On 15 June 2026 the Labour Department issued G.O. Ms. No. 7, publishing the draft Puducherry Code on Wages Rules, 2026 with a 15-day window for objections. Once final, they will replace the Minimum Wages (Puducherry) Rules, 1964, the Puducherry Payment of Wages Rules, 1964, and the bonus and equal remuneration rules. We had not seen a final version by 9 October 2026.

Four proposals matter for payroll. First, wages fixed per day would be divided by eight for an hourly rate and multiplied by 26 for a monthly one — different from the ×30 now used in some orders. Second, the government would consider geographical area as well as experience and skill when fixing rates, which opens the door to different rates for Puducherry town and the outlying regions. Third, a technical committee chaired by the Commissioner of Labour would sort occupations into unskilled, semi-skilled, skilled and highly skilled — a big change from today's employment-by-employment job lists. Fourth, the variable dearness allowance would be reviewed twice a year, before 1 April and before 1 October, using the All-India CPI for industrial or agricultural workers published by the Labour Bureau, instead of once a year on the Puducherry City index.

The draft also says no minimum rate may be below the national floor wage, and that where the government hasn't fixed a rate for a category the floor wage applies. That floor wage had not been notified either; the old advisory figure was ₹176 a day (advisory, 2017).

Worked payroll examples in ₹

Example 1 — a helper in a Puducherry textile shop. Lowest shop band: ₹11,131 a month + ₹1,458 a month = ₹12,589 a month.

• ESI (wages below ₹21,000/month): employee 0.75% ≈ ₹94.42; employer 3.25% ≈ ₹409.14
• EPF at 12% of wages on basic + DA (if covered): ₹1,510.68 each side
• Net pay ≈ ₹10,983.90

Example 2 — a guard supplied by an agency to a Karaikal factory. Security schedule: ₹19,296 a month. ESI ≈ ₹144.72 (employee) and ₹627.12 (employer); EPF ₹2,315.52; net ≈ ₹16,835.76. If the guard works 12-hour shifts, the extra four hours a day are overtime at twice the normal rate of wages: ₹19,296 ÷ 26 ÷ 8 × 2 ≈ ₹185.54 an hour.

Example 3 — an unskilled worker in a fabrication unit. ₹495 × 30 = ₹14,850 basic plus ₹4,446.75 DA = ₹19,296.75 a month, or about ₹666 a day for a daily-rated hand.

Example 4 — a salesman paid a flat ₹12,000. Salesmen are in the ₹11,242 band: with DA the floor is ₹12,700. The shortfall is ₹700 a month, so arrears for April to September 2026 are ₹4,200 — plus EPF and ESI on that amount.

Monthly minimum-wage check for a Puducherry employee

Step 1

Central-sphere work?

Step 2

No → find the 2024 order

Gazette No. 125

Step 3

Basic for the class

monthly or daily

Step 4

Add DA

(471 − base) × per point

Step 5

÷ 26 for daily rate

Step 6

Pay by the 7th with a wage slip

Daily-rated, part-time and contract workers

Many Puducherry businesses hire by the day — kitchen hands during the tourist season from December to February, loaders at Pandagasalai warehouses, extra staff for festival sales. A daily-rated worker must get at least the monthly total for the class divided by 26 for each day worked. For the lowest shop band that is about ₹484 a day in 2026-27; for a hotel cleaner in Grade V it is ₹17,644.30 ÷ 26 ≈ ₹678.63. Keep an attendance register for every casual worker so the wage register can show days worked against pay.

Part-time staff are paid in proportion to hours. Dividing the daily figure by eight gives an hourly floor — about ₹60.52 an hour for a shop helper — so a four-hour evening shift must pay at least ₹242.10.

Contract workers are owed the same rates as direct staff in the same employment. A guesthouse that outsources housekeeping, or a factory that hires guards through an agency, is the principal employer and can be held answerable if the contractor underpays. Ask contractors for monthly wage registers showing basic and DA separately, bank-transfer proof, and ESI and EPF challans for the workers on your premises. Build next April's DA increase into contract prices now, because the declared index has climbed from 366 points in 2021 to 471 for 2026-27.

Employer duties under the Code on Wages

• Pay on time — monthly wages before the end of the 7th day of the next month; full and final settlement within 2 working days.
• Deductions — no more than 50% of wages of wages in total.
• Equal pay — no difference between men and women for the same work, as each order also says.
• Records — keep employee, wage and attendance registers, and issue a wage slip showing basic and DA separately; see our salary slip guide.
• Benefits — ESI and EPF are calculated on basic plus DA and come on top of the minimum.

Puducherry minimum wage checklist

0/6

• Find your employment's 2024 order in Gazette No. 125 and each employee's class
• Note the DA base (426 or 366 points) and per-point amount
• Apply the declared CPI of 471 from 1 April 2026
• Show basic and DA separately on wage slips; deduct EPF and ESI on both
• Pay arrears from 1 April if you raised wages late
• Watch the Labour Department page for the 2027-28 CPI and the final Code on Wages rules

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Common mistakes Puducherry employers make

Paying only the basic rate. The biggest error. A security guard on ₹14,550 is underpaid by ₹4,746 a month in 2026-27.

Using the wrong base. Shops use 426 points and ₹32.40; security, hotels and most factory employments use 366 points with a higher per-point amount. Mixing them up gives the wrong DA.

Forgetting the April reset. DA rises each year when the new CPI is declared. Last year's DA figure is not this year's.

Paying Tamil Nadu or Kerala rates in Karaikal, Mahe or Yanam. The enclaves sit inside other states but follow Puducherry's notifications — compare with our Tamil Nadu and Kerala pages only for cross-border staff.

Leaving DA out of PF and ESI wages. DA is part of wages for both. Deducting EPF on basic alone shortchanges the employee's account.

What happens if you underpay

A worker, a group of workers or a union can claim unpaid minimum wages under the Code on Wages within 3 years, and the authority can award the shortfall plus compensation of up to 10 times the claim. Paying below the minimum is an offence with 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. The Labour Officer (Enforcement) in Puducherry and the Labour Officer in Karaikal handle inspections and complaints.

Official links

• Gazette No. 125, 20.09.2024 — minimum wages in 19 employmentsBasic rates and DA formulas
• CPI points for DA, 2026-27 (Order dated 28.04.2026)
• Draft Puducherry Code on Wages Rules, 2026
• Labour Department — notifications and orders
• The Code on Wages, 2019 (India Code)

What to do next

Recalculate every employee's pay as basic plus DA at 471 points, pay any arrears from 1 April 2026, and set a reminder for next April's CPI declaration. Then issue wage slips with our free salary slip generator, and read our guides to the four labour codes and the Code on Wages so you're ready when the Puducherry rules are finalised.

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 Puducherry in 2026?

It depends on the employment. In shops and establishments the lowest band — helpers, peons, watchmen, sweepers and delivery staff — is ₹11,131 a month a month basic plus ₹1,458 a month dearness allowance for 2026-27, a total of ₹12,589 a month. Security guards get ₹19,296 a month including DA. The basic rates were notified in September 2024.

How is dearness allowance calculated on Puducherry minimum wages?

Each 2024 notification links DA to the average Puducherry City Consumer Price Index (2001=100) for the previous calendar year. You pay a fixed rupee amount for every point above a base — 426 points for shops, 366 for most other employments. The Labour Department declared 471 points for DA payable in 2026-27, so shops pay (471 − 426) × ₹32.40 = ₹1,458 a month.

When is Puducherry DA revised?

Under the current notifications, once a year on 1 April, using the average index for January to December of the previous year. The draft Puducherry Code on Wages Rules, 2026 propose moving to a twice-yearly revision before 1 April and 1 October, but those rules were still in draft on 9 October 2026.

What is the minimum wage for security guards in Puducherry?

The basic rate for a security guard is ₹14,550 a month a month for eight hours a day, and DA is ₹45.20 for every CPI point above 366. With 471 points for 2026-27, DA is ₹4,746 and the total is ₹19,296 a month. Supervisors get ₹21,790 and managers ₹25,355 including DA.

Are Karaikal, Mahe and Yanam rates different from Puducherry?

No. The 2024 notifications fix minimum wages for each employment across the whole Union Territory of Puducherry, and the DA uses one index — Puducherry City CPI — for all four regions. A shop helper in Mahe or Yanam is owed the same ₹12,589 a month as one in Puducherry town.

How do I convert a Puducherry monthly minimum wage to a daily rate?

Divide the monthly rate, including DA, by 26. A shop helper's ₹12,589 a month works out to about ₹484.19 a day. For employments fixed per day, such as general engineering, the notifications multiply the daily rate by 30 for a monthly figure and divide monthly DA by 26 for a daily one.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 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.Gazette of Puducherry Extraordinary No. 125 dated 20.09.2024 — G.O. Ms. Nos. 09 to 27/AIL/Lab./G/2024 dated 02.09.2024 revising minimum wages in 19 employments — Labour Department, Government of Puducherry (Government Press) · accessed 9 October 2026
2. 2.Order No. 1706/Lab/AIL/G/2025 dated 28.04.2026 — declaration of Consumer Price Index points for calculation of DA in the UT of Puducherry — Labour Department, Government of Puducherry · accessed 9 October 2026
3. 3.G.O. Ms. No. 7/Lab/AIL/T/2026 dated 15.06.2026 — Puducherry Code on Wages Rules, 2026 (preliminary notification) — Labour Department, Government of Puducherry · accessed 9 October 2026
4. 4.Labour Department — Gazette notifications, circulars and orders — Labour Department, Government of Puducherry · accessed 9 October 2026
5. 5.Labour Bureau orders dated 30 September 2026 — revised VDA and central minimum wages w.e.f. 01.10.2026, with Area A/B/C annexure — Labour Bureau, Chandigarh, Ministry of Labour & Employment (published on clc.gov.in) · accessed 9 October 2026
6. 6.The Code on Wages, 2019 (No. 29 of 2019) — India Code, Legislative Department · accessed 9 October 2026
7. 7.Government announces implementation of the four Labour Codes (21 Nov 2025) — PIB — Ministry of Labour & Employment · accessed 9 October 2026
8. 8.Puducherry Minimum Wages Notification — September 2024 — DCPSOL · accessed 9 October 2026