An all-in-one business management solution for all your business needs!
Book a free demo to know more!
Built to scale with your business.
AI-powered solution to automate workflow.
Cost-effective for growing businesses.
An all-in-one business management solution for all your business needs!
Book a free demo to know more!
Minimum wages in Kerala are fixed under the Minimum Wages Act, 1948, read with the Kerala Minimum Wages Rules, 1958. The basic wage is uniform across the state, while Dearness Allowance varies by district based on the local Consumer Price Index. Two grade tracks cover shops and commercial establishments and IT and IT-enabled services.
The short answer Under the notification dated 21 February 2026, applicable from 01 January 2026, minimum wages in Kerala for shops and commercial establishments run from ₹12,874 a month (Grade E in Wayanad) to ₹16,160 a month (Grade Special in Mundakayam). IT sector grades run from ₹15,944 to ₹26,400 a month. The basic wage is the same in every district – only the DA moves. General track employees also receive a Special Allowance of ₹200 a month, which IT grades do not.
The total is basic plus the DA for your district headquarters plus, on the general track only, a Special Allowance of ₹200 a month. For an IT employee the total is the IT basic plus the district IT DA, with no special allowance. The notification directs that monthly wages be calculated by multiplying the total daily wages by 26, so the daily figure is the monthly divided by 26. Any employee already receiving more than the notified minimum must continue to be paid at the higher rate.
The mistake to avoid: assuming the higher-cost districts pay more. Kerala’s DA tracks the Consumer Price Index at each district headquarters, and the result is counterintuitive – Ernakulam, the state’s commercial capital, carries one of the lowest DAs at ₹4,836, while Mundakayam in the plantation belt carries the highest at ₹6,630. An employer who assumes Kochi sits at the top of the table will underpay everywhere else.
Worked example – Grade E, shops and establishments, Ernakulam
Basic (uniform statewide) = ₹8,280 / month
Ernakulam DA = ₹4,836 · Special Allowance = ₹200
Total per month = 8,280 + 4,836 + 200 = ₹13,316
Per day = 13,316 ÷ 26 = ₹512.15
The same grade in Mundakayam = 8,280 + 6,630 + 200 = ₹15,110
Kerala does not use the unskilled to highly skilled ladder. It runs two grade tracks: Grade Special down to Grade E for shops and commercial establishments, and Grades A to I for IT and IT-enabled services. The two overlap in lettering but not in rate – IT Grade A at ₹21,330 basic is more than twice the general Grade A at ₹9,120. Which track applies depends on the establishment, not the individual role.
The Special Allowance applies to one track only
₹200 a month is added to every general-track grade and to no IT grade. It is small, but it is a notified component of the minimum, so omitting it is a shortfall rather than a rounding difference.
Act on this: fix the track before the grade. An IT establishment reads Grades A to I from the IT column and never adds the Special Allowance; a shop or commercial establishment reads Grade Special to Grade E and always adds it. Mixing the two produces a figure that is wrong by thousands, not hundreds.
Minimum wages in Kerala apply to workers in the scheduled employments notified by the state government, and coverage does not depend on headcount. The current schedule covers shops and commercial establishments, hotels, canteens and restaurants under Schedule I, and courier services, D.T.P. centres, internet cafes, telephone booths, catering services and house boat services under Schedule II. Contract workers are covered on the same footing, and where an employee already receives more than the notified minimum, that higher rate must continue to be paid.
Paying below the notified rate exposes an employer to recovery of the shortfall for the whole affected period, compensation on top, and prosecution. Under the Code on Wages, 2019 a first offence attracts a fine of up to ₹50,000, and a repeat offence within five years can mean up to three months imprisonment and a fine of up to ₹1 lakh. Claims reach back three years.
Act on this: run the district check on every site, not the head office. A Kerala employer with branches in Kochi, Kozhikode and Kasargod is applying three different DAs to the same grade – ₹4,836, ₹5,512 and ₹6,188 – a spread of ₹1,352 a month on identical work.
Kerala fixes the basic wage by notification and layers a district-specific Dearness Allowance on top, calculated on the Consumer Price Index for the relevant district headquarters as published by the Department of Economics and Statistics. Because the DA is index-linked rather than fixed, wages move without a fresh wage notification being issued each time – the Labour Department revises the DA periodically and the payable figure changes with it. The current wage notification is dated 21 February 2026 and applies from 01 January 2026.
Act on this: track the DA, not the wage notification. This is the single biggest difference between Kerala and every other state in India. A compliance calendar that watches for new minimum wage notifications will show nothing for months while the payable figure has already moved, because in Kerala it is the index that drives the number.
Notification position for shops and commercial establishments in Kerala.
| Item | Detail | Lowest District Total | Highest District Total |
|---|---|---|---|
| Wage notification | Dated 21 February 2026, applicable 01 January 2026 | ₹12,874 | ₹16,160 |
| DA mechanism | District headquarters CPI, revised periodically without fresh wage notification | – | – |
| Draft revision | Issued 03 February 2026 for Schedule I and Schedule II employments | – | – |
The February 2026 notification supersedes G.O.(P) No.196/2016/LBR dated 21 December 2016, published as S.R.O. No.785/2016. A draft revision covering shops, commercial establishments, hotels, canteens, restaurants, courier services, D.T.P. centres, internet cafes, telephone booths, catering services and house boat services was issued on 03 February 2026 – check whether it has since been finalised. Cross-verified against compliance-maintained datasets, July 2026. Always confirm against the official notification of the Labour Commissionerate, Kerala before finalizing payroll.
Kerala is structurally unlike any other state. Most states vary the basic by zone and hold the allowance flat; Kerala does the opposite, holding the basic uniform statewide and varying the allowance across seventeen district headquarters. It is also the only state to notify a separate wage track for IT and IT-enabled services rather than folding IT staff into a general clerical grade.
Unskilled or entry-grade minimum wage per day, compared with other states. Comparison figures are to be filled from each state’s own notification.
| State / Benchmark | Unskilled / Day | Structure |
|---|---|---|
| Kerala – Grade E, Ernakulam | ₹512.15 | Basic ₹8,280 + district DA ₹4,836 + ₹200 special allowance |
| Kerala – Grade E, Mundakayam | ₹581.15 | Same basic, highest district DA at ₹6,630 |
| Tamil Nadu – Zone A | ₹540.15 | Basic ₹6,691 + DA ₹7,353 a month, four zones |
| Karnataka – Zone I | ₹620.66 | Basic ₹11,587.83 + VDA ₹4,549.20 a month |
| Lakshadweep (UT) | ₹556 | Central Sphere, basic ₹350 + VDA ₹206 a day |
| National Floor Wage | – | Advisory floor, not directly enforceable on employers |
Act on this: if you run establishments across Kerala and Tamil Nadu, note that Tamil Nadu revises annually every April while Kerala’s payable figure moves with the district index between notifications. A shared southern review cycle will be too slow for Kerala and unnecessary for Tamil Nadu.
The table below sets out minimum wages in Kerala by grade, under the notification dated 21 February 2026 applicable from 01 January 2026. The basic wage is uniform across all seventeen districts; the totals shown are ranges because the Dearness Allowance varies by district headquarters. General track totals include the ₹200 Special Allowance; IT track totals do not.
| Grade | Track | Basic / Month | Special Allow. | Total / Month (Range) |
|---|---|---|---|---|
| Grade Special | Shops & Commercial | ₹9,330 | ₹200 | ₹13,924 – ₹16,160 |
| Grade A | Shops & Commercial | ₹9,120 | ₹200 | ₹13,714 – ₹15,950 |
| Grade B | Shops & Commercial | ₹8,910 | ₹200 | ₹13,504 – ₹15,740 |
| Grade C | Shops & Commercial | ₹8,700 | ₹200 | ₹13,294 – ₹15,530 |
| Grade D | Shops & Commercial | ₹8,490 | ₹200 | ₹13,084 – ₹15,320 |
| Grade E | Shops & Commercial | ₹8,280 | ₹200 | ₹12,874 – ₹15,110 |
| Grade A | IT / ITES | ₹21,330 | Nil | ₹24,164 – ₹26,400 |
| Grade B | IT / ITES | ₹19,950 | Nil | ₹22,784 – ₹25,020 |
| Grade C | IT / ITES | ₹18,700 | Nil | ₹21,534 – ₹23,770 |
| Grade D | IT / ITES | ₹17,560 | Nil | ₹20,394 – ₹22,630 |
| Grade E | IT / ITES | ₹16,520 | Nil | ₹19,354 – ₹21,590 |
| Grade F | IT / ITES | ₹15,570 | Nil | ₹18,404 – ₹20,640 |
| Grade G | IT / ITES | ₹15,120 | Nil | ₹17,954 – ₹20,190 |
| Grade H | IT / ITES | ₹13,470 | Nil | ₹16,304 – ₹18,540 |
| Grade I | IT / ITES | ₹13,110 | Nil | ₹15,944 – ₹18,180 |
Source: Labour Commissionerate, Government of Kerala – notification dated 21 February 2026, applicable from 01 January 2026, for shops and commercial establishments and for IT and IT-enabled services. Totals are ranges because the Dearness Allowance is set separately for each of seventeen district headquarters. The IT DA is exactly ₹1,560 a month below the general DA in every district. Cross-verified against compliance-maintained datasets, July 2026. Always confirm against the official notification of the Labour Commissionerate, Kerala before finalizing payroll.
Kerala sets the DA separately for each of seventeen district headquarters against the local Consumer Price Index. The basic is identical everywhere, so the district DA is the only thing that changes the total. The general and IT figures below differ by exactly ₹1,560 in every district.
Daily wages in Kerala are the monthly total divided by 26. For a Grade E employee in shops and commercial establishments that is ₹512.15 a day in Ernakulam, ₹548.15 in Thiruvananthapuram and ₹537.38 in Kozhikode and Kannur. The same grade earns ₹581.15 a day in Mundakayam and ₹495.15 in Wayanad. Because only the DA varies, the spread between the cheapest and most expensive location is the same ₹2,236 a month at every grade on the general track – so the district decision costs an employer identically whether the employee is Grade Special or Grade E.
Under the notification dated 21 February 2026, applicable from 01 January 2026, minimum wages Kerala for shops and commercial establishments run from ₹12,874 to ₹16,160 a month depending on grade and district. IT and IT-enabled services grades run from ₹15,944 to ₹26,400 a month. The basic is uniform statewide; only the Dearness Allowance varies by district.
Because the Dearness Allowance is calculated on the Consumer Price Index for each district headquarters, published by the Department of Economics and Statistics. The basic wage is the same everywhere. Mundakayam carries the highest DA at ₹6,630 and Wayanad the lowest at ₹4,394 — and Ernakulam, the commercial capital, sits near the bottom at ₹4,836.
Divide the monthly total by 26 — the notification directs that monthly wages be calculated by multiplying total daily wages by 26. A Grade E shops and establishments employee earns ₹512.15 a day in Ernakulam, ₹548.15 in Thiruvananthapuram and ₹581.15 in Mundakayam.
Yes. Kerala notifies a distinct IT and IT-enabled services track running Grades A to I, with basics from ₹21,330 down to ₹13,110 — substantially higher than the general track. IT grades receive no Special Allowance, and the IT Dearness Allowance is exactly ₹1,560 a month below the general DA in every district.
A flat ₹200 a month added to every grade on the general shops and commercial establishments track. It does not apply to any IT grade. Small as it is, it is a notified component of the minimum wage, so leaving it out is a shortfall rather than a rounding difference.
The basic wage changes only by fresh notification, but the Dearness Allowance is index-linked and revised periodically by the Labour Department — so the payable figure moves without a new wage notification being issued. Track the DA revisions rather than watching only for wage notifications.
Alpesh Vaghasiya (CEO)
Alpesh Vaghasiya is the Co-founder and CEO of Superworks, a smart business management solution that Indian SMBs and large enterprises use to run attendance, payroll, and statutory compliance from a single system. He has spent over 15 years building software out of Surat, founding Artoon Solutions, now a 350+ person product engineering firm serving clients across 30+ countries, in 2009, before launching Superworks in 2020.
His writing comes from the operator's side of compliance - what actually breaks when payroll has to absorb a minimum wage revision, reconcile attendance across multiple sites, or file returns under different state rules in the same month. A Charter Member of TiE Surat and an active angel investor in early-stage Indian startups, he holds a B.E. in Computer Engineering from Gujarat University.
Superworks keeps minimum wage slabs, zones, and statutory deductions correct across all your locations.
