Karnataka Minimum Wage 2026 — New Labour Code
Karnataka's minimum wage policy has historically been shaped by its dual economy: a globally-integrated IT sector in Bengaluru and a large agricultural and garment manufacturing workforce across the rest of the state. The Karnataka government revises minimum wages for industrial and commercial establishments under the Karnataka Shops and Commercial Establishments Act, with a separate schedule for agricultural workers. For IT employees, minimum wage notifications are largely symbolic since market salaries far exceed floors — but the New Labour Code 50% basic rule is highly material for mid-level IT employees whose CTC structures have thin basics.
Karnataka's April 2025 minimum wage for a Zone 1 (Bengaluru) unskilled worker stands at ₹16,042/month. The state uses a three-zone system (Zone 1: Bengaluru; Zone 2: tier-2 cities; Zone 3: rural areas) with meaningfully different rates across zones. Garment workers in Bengaluru's Electronic City and Anekal corridors fall under a special scheduled employment notification that must be reconciled with Code on Wages provisions. Karnataka is among the states that has published a draft implementation plan for the New Labour Codes, making it one of the more advanced states in terms of readiness.
The table below reflects the consolidated source used on this site; always match your establishment to the correct zone and scheduled employment in the official Karnataka labour notification.
People also compare minimum wage Karnataka, daily wage Karnataka, and salary per day Karnataka when checking payslips, vendor quotes, and appointment letters—the table below translates those phrases into notified skill-wise floors.
Last updated: March 2026
Rates are compiled for quick payroll research and cite a public wage notification below. For statutory filings, confirm against your state labour department circular and the Ministry of Labour and Employment framework (Code on Wages). Where Provident Fund applies, wage definitions can interact with EPFO guidance—validate specifics with your compliance advisor.
| Category | Daily Rate | Monthly Equivalent |
|---|---|---|
| Unskilled | ₹480 | ₹12480 |
| Semi-Skilled | ₹530 | ₹13780 |
| Skilled | ₹590 | ₹15340 |
| Highly Skilled | ₹649 | ₹16874 |
Monthly equivalent uses 26 paid working days (site convention for cross-state comparison). Your establishment may use a different pay cycle—adjust multiplication accordingly.
Is your Karnataka employer paying you correctly?
In Karnataka, minimum wage violations are most common in IT, manufacturing, and logistics sectors. If you work in these industries and earn below ₹12,480/month (unskilled rate), your employer is violating the law. You can file a complaint with the Karnataka Labour Department or call the central helpline 1800-11-1565 (free).
Professional tax in Karnataka
Karnataka professional tax slabs (verify latest notification—rates were revised in 2023 and some payroll templates are stale):
| Monthly salary / range | Professional tax |
|---|---|
| Monthly salary up to ₹14,999 | PT: Nil |
| ₹15,000 – ₹29,999 | PT: ₹150/month |
| ₹30,000 – ₹44,999 | PT: ₹200/month |
| ₹45,000 – ₹59,999 | PT: ₹300/month |
| ₹60,000 – ₹74,999 | PT: ₹450/month |
| ₹75,000 and above | PT: ₹200/month* |
*Karnataka revised slabs in 2023; confirm the current slab table on the official commercial taxes / state treasury circular before go-live.
IT/ITES (Bengaluru / Karnataka)
Bengaluru hosts 35%+ of India's software exports. IT companies typically pay market salaries 5–20x above minimum wage, but salary structuring for Grades 1–3 engineers (₹4–12 LPA) is heavily skewed toward low-basic/high-allowance for PF arbitrage. The New Labour Code eliminates this arbitrage — companies like Infosys, Wipro, TCS and hundreds of product startups must restructure payroll for lakhs of employees. Karnataka's large IT workforce makes it the highest-impact state for the New Labour Code.
How minimum wages differ across Karnataka
Zone 1 vs Zone 3 is not cosmetic—logistics depots, garment units and tech parks can sit under different rows in the same district name. Garment notifications and general commercial schedules diverge; import both into your compliance matrix. For IT, run the New Labour Code salary calculator on real CTC splits: thin-basic packages are where wage-definition risk concentrates even when minima are far below market pay.
Example: daily wage and monthly salary in Karnataka (2026)
Picture a skilled electrician on a gross monthly quote—translate it to daily to test the floor: For 2026, the referenced scheduled-employment floor for unskilled work is ₹480 per day, which lines up with roughly ₹12480 per month on a 26-day basis. A skilled worker at the notified rate would be ₹590/day (₹15340/month at 26 days)—use your actual paid days if your payroll calendar differs.
How is minimum wage calculated in Karnataka?
Karnataka publishes minimum wages through labour department notifications, usually by skill level and scheduled employment (and sometimes by zone or city class). This page uses a consolidated snapshot so you can compare states quickly; for audits, map each job to the exact schedule row in the official PDF linked below—not to informal market chatter.
Penalty for violation in Karnataka
Underpayment can trigger wage claims, inspections, recovery orders, and penalties depending on the Code on Wages and state enforcement practice. Treat the published floor as a compliance baseline—paying “market average” below the notified rate for a mapped category is a high-risk shortcut.
How to file a complaint in Karnataka
Collect appointment letters, attendance proof, pay slips, and bank credits, then approach the labour department or labour commissioner handling wage disputes in Karnataka. Many states now offer online labour portals—use the official government domain for submissions, not third-party forms.
Frequently asked questions
Does Karnataka's three-zone minimum wage system continue unchanged under the New Labour Code, or does the central floor wage override Zone 2 and 3?
Zone tables remain the starting point for Karnataka scheduled employments, but the central floor wage must still be satisfied where it exceeds the state rate once fully notified. Expect compliance playbooks to compare three numbers: your zone row, any special industry schedule, and the central floor—not just the lowest headline on a blog chart.
My Bengaluru IT employer pays ₹12 LPA — does the 50% basic rule apply to me even though I earn far above the minimum wage?
Minimum wage floors may be irrelevant to your gross, but the Code on Wages wage-definition and 50% basic-style rules still apply to how your CTC is classified for many payroll and social-security purposes. High earners are not “exempt” from restructuring debates—they are often the population where employers optimised basic downward. Model your offer letter with the calculator and counsel.
Karnataka garment workers are covered under a special notification — does the Code on Wages override or supplement this?
Special schedules set the statutory floor for that employment; the Code provides overarching wage principles, floor wages, and compliance architecture. In practice you satisfy the higher/more specific obligation that applies to your category and date of enforcement. Keep both the garment circular and the general Code implementation notifications in the same audit file.
Key takeaways for Karnataka
- Tag every site to Zone 1/2/3 plus any garment or industry annex—not generic “Karnataka”.
- Treat IT CTC restructuring as distinct from minimum-wage table checks.
- Re-verify Karnataka PT slabs after 2023 reforms; payroll engines often lag.
Check salary impact in Karnataka
Current Monthly CTC
₹83,333
State wage floor used
₹12,480/month
Annual CTC band
10L
New wage base
₹41,667/month
New Monthly Take-Home
Calculated for Karnataka with a IT/ITES salary structure.
Annual Impact Overview:
Over a year, take-home changes by ₹24,000. Your PF corpus grows by ₹12,000 a year more, and your gratuity accrual increases by ₹400.65 each month.
| Component | Old Structure | New Structure |
|---|---|---|
| Basic | ₹33,333 | ₹41,667 |
| HRA | ₹16,667 | ₹20,833 |
| PF (employee) | ₹4,000 | ₹5,000 |
| PF (employer) | ₹4,000 | ₹5,000 |
| Gratuity accrual | ₹1,603 | ₹2,003 |
| Professional Tax | ₹200 | ₹200 |
| Net Take-Home | ₹75,133 | ₹73,133 |
Last updated: 30 March 2026
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Internal links: explore more minimum wage pages
Return to the state-wise minimum wage India 2026 hub for search, sort, and every state/UT link. Then compare neighbouring demand centres:
- Minimum wage in Andhra Pradesh 2026 — daily rates and monthly equivalents
- Minimum wage in Delhi 2026 — daily rates and monthly equivalents
More regional comparisons
Primary source: Labour Department Karnataka — Official Notification (notification context: March 2026)
Also use the New Labour Code salary calculator and the FAQ page for broader compliance context.