Minimum Wages In Karnataka 2024 – Clovehrms
In this blog, you will find detailed information about the minimum wages in Karnataka for different types of workers. Moreover, you will learn about the gross salary in Karnataka’s four zones and the components that are commonly included while calculating gross salary.
Minimum Wages, Karnataka
Minimum wages refers to the minimum salary that an employer must provide to an employee of a different type. There are four types of workers in Karnataka and the minimum wages differ for all these types of workers. Moreover, the wages also differ depending on the zone you are in. In this blog, we have created detailed tables of minimum wages in Karnataka and the gross salaries which include the VDA and some common allowances.
What is the Minimum Wages Act, Karnataka?
Minimum Wages Act, Karnataka is Karnataka’s enactment of the Minimum Wages Act, 1948. As per the Karnataka government, there are four types of workers namely, unskilled, semi-skilled, skilled and highly skilled. Now, the newest notification of these wages has come from the Karnataka government for the year 2024-25. As per the notification, the unskilled worker must be paid at least ₹11,587 as the basic compensation.
However, the compensation when included with other components like dearness allowance, HRA, etc becomes higher. Similarly, a semi-skilled worker must be paid ₹12,746, a skilled worker must be paid ₹14,021 and a highly skilled worker must be paid ₹15,423. However, the basic compensation also depends on the area in which you are living. In Karnataka, there are four zones and the payment gets slightly less as you move from the first zone to the fourth zone. For a detailed look at the minimum wages in Karnataka and gross salary calculated on minimum, refer to the tables given below that help to understand salary structure of each class workers.
1) Unskilled Workers
Here are the minimum wages and gross salaries for unskilled workers in all four zones.
Minimum Wages | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | 11,587 | 11,036 | 10,510 | 10,010 |
Variable Dearness Allowance | 3,518 | 3,518 | 3,518 | 3,518 |
Component | Calculation | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | Fixed | 11,587 | 11,036 | 10,510 | 10,010 |
Dearness Allowance | Variable | 3,518 | 3,518 | 3,518 | 3,518 |
House Rent Allowance (HRA) | 50% of Basic Pay | 5793.5 | 5518 | 5255 | 5005 |
Conveyance Allowance | Fixed at ₹1,600 per month | 1,600 | 1,600 | 1,600 | 1,600 |
Gross Salary | Basic Pay + HRA + Conveyance | 22,499 | 21,672 | 20,883 | 20,133 |
2) Semi-skilled Workers
Here are the minimum wages and gross salaries for semi-skilled workers in all four zones.
Minimum Wages | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | 12,746 | 12,139 | 11,561 | 11,011 |
Variable Dearness Allowance | 3,518 | 3,518 | 3,518 | 3,518 |
Component | Calculation | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | Fixed | 12,746 | 12,139 | 11,561 | 11,011 |
Dearness Allowance | Variable | 3,518 | 3,518 | 3,518 | 3,518 |
House Rent Allowance (HRA) | 50% of Basic Pay | 6373 | 6069.5 | 5780.5 | 5505.5 |
Conveyance Allowance | Fixed at ₹1,600 per month | 1,600 | 1,600 | 1,600 | 1,600 |
Gross Salary | Basic Pay + HRA + Conveyance | 24,237 | 23,327 | 22,460 | 21,635 |
3) Skilled Workers
Here are the minimum wages and gross salaries for skilled workers in all four zones.
Minimum Wages | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | 14,021 | 13,353 | 12,717 | 12,112 |
Variable Dearness Allowance | 3,518 | 3,518 | 3,518 | 3,518 |
Component | Calculation | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | Fixed | 14,021 | 13,353 | 12,717 | 12,112 |
Dearness Allowance | Variable | 3,518 | 3,518 | 3,518 | 3,518 |
House Rent Allowance (HRA) | 50% of Basic Pay | 7010.5 | 6676.5 | 6358.5 | 6056 |
Conveyance Allowance | Fixed at ₹1,600 per month | 1,600 | 1,600 | 1,600 | 1,600 |
Gross Salary | Basic Pay + HRA + Conveyance | 26,150 | 25,148 | 24,194 | 23,286 |
4) Highly Skilled Workers
Here are the minimum wages and gross salaries for highly skilled workers in all four zones.
Minimum Wages | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | 15,423 | 14,688 | 13,989 | 13,323 |
Variable Dearness Allowance | 3,518 | 3,518 | 3,518 | 3,518 |
Component | Calculation | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
Basic Pay | Fixed | 15,423 | 14,688 | 13,989 | 13,323 |
Dearness Allowance | Variable | 3,518 | 3,518 | 3,518 | 3,518 |
House Rent Allowance (HRA) | 50% of Basic Pay | 7711.5 | 7344 | 6994.5 | 6661.5 |
Conveyance Allowance | Fixed at ₹1,600 per month | 1,600 | 1,600 | 1,600 | 1,600 |
Gross Salary | Basic Pay + HRA + Conveyance | 28,253 | 27,150 | 26,102 | 25,103 |
The DA and other components are variable and can vary as per the company. In the above tables, the VDA considered as given in the Karnataka state government’s notification is ₹3,518. Moreover, the HRA is calculated at 50% of the minimum wage and the conveyance allowance is fixed at ₹1,600.
Good to Read:- What is Arrears in Salary? | Meaning, Definition
What are the Components of Gross Salary in Karnataka?
Gross salary mainly has a few of the main components of the net salary and doesn’t include any deductions. Here are the four main components of gross salary.
1) Basic Pay
The first component is the basic pay which must be equal to Karnataka’s minimum wages, 2024-25. It remains the same for every city in Karnataka. For instance, Bangalore is the capital and a big city of Karnataka but the minimum wages in Bangalore are the same as other cities.
2) Dearness Allowance
Apart from the minimum wages in Karnataka, the dearness allowance is also calculated in the gross salary. It is the component that allows the companies to help their employees cope the inflation. The government put a variable DA in their notification and the exact DA is calculated by the company.
3) House Rent Allowance (HRA)
As the name refers, it is the component of the salary that is given for the house rent. It is calculated as a percentage of salary.
4) Conveyance Allowance
Conveyance allowance is the allowance for the daily commute of the employee from and to the office. We have calculated ₹1,600 as the CA.
Conclusion
These are the minimum wages in Karnataka and the gross salaries for different workers in the four zones. However, the net salary is calculated by taking many other factors into account like other allowances and deductibles such as PF. With the above tables, you can get an idea of minimum wages and expected pay for your work.