The minimum wages for employees in Shops and Commercial Establishments in Kerala have been revised, with the new rates based on the Consumer Price Index (CPI) taking effect from July 2025. The revision includes an updated Dearness Allowance (DA) component to align compensation with the rising cost of living, providing a significant update for employers and workers in the state.
This change reflects the Government of Kerala’s commitment to ensuring fair compensation in line with economic fluctuations. The revised rates, which feature both basic wages and the new Dearness Allowance, will impact various employment categories, from Special Grade managers to sweepers and office assistants. The new structure replaces the older rates and is crucial for companies to implement correctly to ensure full compliance with state labor regulations.
The new wage structure is detailed below, outlining the revised monthly basic pay, Dearness Allowance (DA), and total minimum wages for various categories of employment.
The amended rates for all the categories are as below:-
| KERALA Shops and Commercial Establishments | ||||
| Minimum Wages Rates for Cochin w.e.f 1st Dec ‘2016 | ||||
| S.NO | CLASS OF EMPLOYMENT | Monthly | ||
| BASIC | DA (w.e.f July’2025) | TOTAL | ||
| Special Grade | ||||
| 1 | Manager | 9330 | 4784 | 14114 |
| Grade ‘A’ | ||||
| 1 | Head Clerk | 9120 | 4784 | 13904 |
| 2 | Sales Supervisor/Supervisor | |||
| 3 | Stenographer | |||
| 4 | Electrician | |||
| Grade ‘B’ | ||||
| 1 | Accountant | 8910 | 4784 | 13694 |
| 2 | Clerk | |||
| 3 | Typist | |||
| 4 | Cashier | |||
| 5 | Booking Clerk | |||
| 6 | Bill Collector | |||
| 7 | Salesman/Sales women | |||
| Grade C | ||||
| 1 | Shop Assistant | 8700 | 4784 | 13484 |
| Grade D | ||||
| 1 | Attender | 8490 | 4784 | 13274 |
| 2 | Peon | |||
| 3 | Watchman | |||
| Grade E | ||||
| 1 | Office Assistant/Sales Assistant(Commercial Establishment) | 8280 | 4784 | 13064 |
| 2 | Sweeper | |||
Revised Kerala (CPI Index) minimum wages notification attached for your reference.
Key takeaways for employers
- Implement new rates promptly: Employers operating in Kerala should ensure these revised wages are implemented in payroll with effect from July 2025 to comply with state labor laws.
- Update payroll systems: Payroll systems and processes must be updated to reflect the new DA and total wage amounts for all affected employees.
- Communicate changes to staff: Clear communication with employees about the wage revision is essential for transparency and to address any questions they may have.
- Review your compliance: Businesses should review the official notification (as provided for reference) to ensure full compliance and proper classification of all employees under the revised categories.
This revision is a crucial compliance update for all relevant businesses in Kerala. Staying informed and proactive is key to managing payroll and statutory compliance effectively.
Thank you for reading. We hope the information was helpful to you!
Team SGC Services
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