What an employer in Karnataka actually has to pay and file in 2026 — the notified minimum wage by skill level, Professional Tax, Labour Welfare Fund, the Shops & Establishments Act that applies here, and the central PF and ESI rules that do not change by state.
| Skill level | Karnataka (per month) | Central sphere rate |
|---|---|---|
| Unskilled | ₹23,376 | ₹21,840 |
| Semi-skilled | ₹25,714 | ₹24,258 |
| Skilled | ₹28,285 | ₹26,624 |
| Highly skilled | ₹31,114 | ₹28,886 |
Zone 1 (Greater Bengaluru) shown, the safe side; Zone 2 (other Mahanagara Palikes and district headquarters) starts at ₹21,251 and Zone 3 (all other areas) at ₹19,319. Source: Government of Karnataka, final minimum wages notification dated 22-05-2026, one uniform rate for all scheduled employments. Contested: employers have challenged it in the High Court. Pay it unless a court order says otherwise, and check the status before relying on it.
The second column is the Central Government (central sphere) rate for the same skill level (Area A, construction, sweeping and loading; Labour Bureau orders of 30-09-2026, in force 1 October 2026 to 31 March 2027) — what applies to establishments under central authority such as railways, mines, ports, banking and oilfields. A state establishment pays the state figure; the two are shown side by side because contractors working on central-sphere sites in this state are paid on the central rate. Figures are read from the state's own notification and re-checked as each revision is published.
| Professional Tax | Applicable — Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, capped at ₹2,500/year. |
| Shops & Establishments Act | Karnataka Shops and Commercial Establishments Act, 1961. |
| Labour Welfare Fund | Applicable — Karnataka Labour Welfare Fund Act, 1965. |
| PF (EPFO, central) | 12% employee / 12% employer (3.67% EPF + 8.33% EPS) on Basic + DA, capped at a ₹25,000/month wage ceiling from 17 September 2026 (S.O. 5109(E); ₹15,000 before that) — identical in every state. |
| ESI (ESIC, central) | 0.75% employee / 3.25% employer where gross wages are ₹21,000/month or less — identical in every state. |
| Gratuity | Code on Social Security, 2020, Chapter V (in force from 21 November 2025; it replaced the Payment of Gratuity Act, 1972) — 15 days' wages per completed year after 5 years' continuous service; a fixed-term employee is paid pro rata after one year. Wages are counted on the Code's definition, so allowances above 50% of pay are added back. Applies to establishments with 10 or more employees in Karnataka as elsewhere. |
Stated under the four Labour Codes and this state's own legislation. Official portals for registration and filing are listed below.
As notified with effect from May 22, 2026, the monthly minimum wage in Karnataka (Zone 1, Greater Bengaluru) is ₹23,376 for unskilled work, ₹25,714 for semi-skilled work and ₹28,285 for skilled work, rising to ₹31,114 for highly skilled work. Rates are revised twice a year in most states when the variable dearness allowance is refixed.
Applicable — Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, capped at ₹2,500/year.
Karnataka Shops and Commercial Establishments Act, 1961.
Applicable — Karnataka Labour Welfare Fund Act, 1965.
No. EPF at 12% employee and 12% employer on Basic + DA (₹25,000 wage ceiling from 17 September 2026 under S.O. 5109(E); ₹15,000 before that) and ESI at 0.75% employee and 3.25% employer (gross up to ₹21,000) are central schemes and apply identically in Karnataka and in every other state. Only minimum wages, Professional Tax, Labour Welfare Fund and the Shops and Establishments Act differ by state.
