Hike in Minimum Wages for Workers in Shops and Commercial Establishment from April, 2019

The Government of Karnataka vide notification no. P&S-I/CPI/2018-19 dated 1st March, 2019, has enhanced the consumer price index (CPI) for 2019 which has become effective from 1st April, 2019 and shall remain effective till 31st March 2020.

Under the minimum wage notification no. KE/20/LMW/2017 dated 30th December 2017 the payable minimum wages must also include ‘Variable Dearness Allowance’ (“VDA”) which is calculated from 1st of April every year. The calculation of the VDA for all classes of workers and all scheduled employments depends on the change in CPI that year. VDA is calculated for personnel receiving wages on both Daily and Monthly basis.

With the notification dated 1st March, 2019, the CPI for 2019-20 has increased by 731 points from last year. Thus, the VDA payable in addition to the minimum wages also has increased, the VDA to be paid as per the enhanced CPI for year 2019-20 are as follows:

Total VDA (Daily Wages) INR 33.74
Total VDA (Monthly Wages) INR 877.20

Resultantly, the total payable minimum wages to all workers in shops and commercial establishments in Karnataka stands increased accordingly from April, 2019.


Notification: Enhanced CPI for 2019 – http://labour.kar.nic.in/labour/Consumer%20Price%20Index%202019.pdf

Minimum Wage Notification dated 30th December 2017 - https://www.rai.net.in/E-Mailers/Advocacy-update/Karnataka-Minimum-Wages-English-and-kannada.pdf

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