Minimum Wage

Kerala Issues Revised CPI Index and Minimum Wages Effective April 2026 – Are Your Payroll Estimates Accurate? | SGC Services

The Government of Kerala, via the Department of Economics and Statistics, has officially published its latest statutory compliance notifications under Notification No. DES/1129/2025-P3(1).

This essential state mandate revises the Consumer Price Index (CPI) numbers for both agricultural and industrial workers, directly adjusting the dynamic Variable Dearness Allowance (VDA) payout metrics. This system recalculation went into effect for the April 2026 salary cycle, carrying strict financial and regulatory penalties for corporations that fail to execute immediate updates across active payroll platforms. Under current regional labor codes, calculating incorrect VDA structures creates non-compliance liability, paving the way for worker litigation, back-pay reconciliation bills, and state audit failures.

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 April’2026) TOTAL
Special Grade
1 Manager 9330 4888 14218
Grade ‘A’
1 Head Clerk 9120 4888 14008
2 Sales Supervisor/Supervisor
3 Stenographer
4 Electrician
Grade ‘B’
1 Accountant 8910 4888 13798
2 Clerk
3 Typist
4 Cashier
5 Booking Clerk
6 Bill Collector
7 Salesman/Sales women
Grade C
1 Shop Assistant 8700 4888 13588
Grade D
1 Attender 8490 4888 13378
2 Peon
3 Watchman
Grade E
1 Office Assistant/Sales Assistant(Commercial Establishment) 8280 4888 13168
2 Sweeper

Revised Kerala (CPI Index) minimum wages notification attached for your reference.

Thank you for reading. We hope the information was helpful to you!

SGC Services (P) Limited

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Kerala Basic’Dec’16.pdf

CPIndexApril2026.pdf


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