How Karnataka sets this minimum wage
Karnataka fixes minimum wages under the Minimum Wages Act, 1948, separately for each scheduled employment. There is no single flat state-wide rate: the figure depends on the worker's employment, skill category and the zone where they work. Every wage is a basic wage plus a Variable Dearness Allowance (VDA).
The VDA is revised every year, effective 1 April, based on the state Consumer Price Index for Industrial Workers. The basic rate changes only when a fresh notification is issued for that scheduled employment. The rates on this page apply for 1 April 2026 to 31 March 2027.
Zones in Karnataka
- Zone I is the notified area of Bruhat Bengaluru Mahanagara Palike (BBMP), i.e. Bengaluru city.
- Zone II is the notified areas of all other City Corporations (Mahanagara Palikes) in the state.
- Zone III is all district headquarters not already in Zone I or Zone II.
- Zone IV is all other places in the state.
What employers must do
Classify each worker into the correct skill category: a cashier or store supervisor is not un-skilled. Sales, billing and stock roles are typically semi-skilled or skilled. Pay overtime at twice the ordinary rate, keep a wage register and wage slips, and update payroll each 1 April when the VDA is revised.
- Pay every worker at least the notified minimum for their skill category. Paying below it is an offence.
- Pay overtime at twice the ordinary rate for work beyond normal hours.
- Maintain a wage register, muster roll and wage slips, and pay within the wage period.
- Update payroll at each revision so no worker slips below the new minimum.
For contractors and staffing firms deploying shop and commercial establishment workers across Karnataka, keeping every worker on the right schedule and skill rate by hand is error-prone. ZeniaHR payroll checks each worker's wage against the applicable state minimum automatically and handles the registers and PF/ESI returns. See also our statutory compliance software and contract labour compliance guide.
Related calculators
Work out the deductions on a Karnataka wage with our free tools: the in-hand salary calculator, the PF calculator and the ESI calculator. Confirm the official rates on the Karnataka Labour Department minimum wages page.
Keep every worker on the right wage, automatically
ZeniaHR flags any worker paid below the applicable minimum wage and updates rates at each revision. Built only for manpower and staffing companies.
Frequently asked questions
What is the minimum wage for shop workers in Karnataka in 2026?
A general un-skilled worker in shops and commercial establishments earns about ₹620.66 per day, roughly ₹16,137 per month, in Zone I (Bengaluru), effective 1 April 2026. Semi-skilled, skilled and highly-skilled workers earn more.
What is the skilled-worker rate in shops?
A skilled worker earns about ₹714.25 per day in Zone I and a highly-skilled worker about ₹768.18 per day, effective 1 April 2026, including VDA of ₹174.97 per day.
Does the shop worker wage vary by city?
Yes, by zone. Zone I is BBMP (Bengaluru); Zone II is other City Corporations; Zone III is district headquarters; and Zone IV is all other places, each with progressively lower rates.
How often is the shop worker minimum wage revised?
The VDA is revised every year, effective 1 April, based on the state Consumer Price Index for Industrial Workers. The current rates apply for 1 April 2026 to 31 March 2027.