The Government of Kerala, through the Labour and Skills Department, has officially revised the variable Dearness Allowance (DA) and minimum wages for employees in Shops and Commercial Establishments and those working in the Computer Software Industry. The updated wage structure comes into effect from the date of publication of the notification in the Kerala Gazette.
Legal Framework and Notification Details
The revision has been issued under the powers granted by Section 3(1)(b) of the Minimum Wages Act, 1948 (Central Act 11 of 1948), and replaces the earlier notification G.O. (Ms) No. 111/2011/LBR, dated 9th August 2011. The new notification, G.O. (P) No. 95/2020/LBR, was published after considering public objections and consulting the Minimum Wages Advisory Board.
Revised Wage Structure for Computer Software Industry
The Government has fixed the new minimum monthly basic wages for different employee categories, ranging from managerial roles to housekeeping staff.
| Group | Category Examples | Monthly Basic Wage (₹) |
| A | Manager | 21,330 – 26,080 |
| B | Deputy/Project Manager, Senior Team Manager | 19,950 – 24,200 |
| C | Assistant Manager, Project Leader, Coordinator | 18,700 – 22,450 |
| D | Senior Software Engineer, System Analyst | 17,560 – 20,810 |
| E | Programmer, Software Engineer | 16,520 – 19,270 |
| F | Executive, Accountant, HR Executive | 15,570 – 17,945 |
| G | Data Entry Operator, Driver | 15,120 – 17,245 |
| H | Housekeeping, Security Guard | 13,470 – 15,345 |
| I | Sweeper, Cleaner | 13,110 – 14,735 |
Dearness Allowance (DA)
In addition to the basic pay, employees will receive Dearness Allowance linked to the Consumer Price Index (CPI) for their respective district headquarters.
- ₹26 per point for monthly-rated employees
- ₹1 per point for daily-rated employees
These rates apply for every point increase above 300 points (base year 1998–99 = 100).
Service Weightage
Employees completing every five years of service in an establishment will be granted an increment at the next rate within their pay scale. Once an employee reaches the maximum of the scale, further increments will follow the next higher pay scale applicable to their category.
Other Key Provisions
- Higher Wages Protection: Employees already earning more than the revised minimum wages will continue to receive the higher rate.
- Unlisted Categories: Workers not specifically listed will receive the pay equivalent to the nearest matching role.
Purpose of the Revision
The notification aims to update the wage standards for employees in Kerala’s growing IT and software industry, ensuring fair compensation that reflects rising living costs. The previous wage structure, fixed in 2011, had become outdated due to inflation and cost-of-living changes.
Conclusion
With this revision, Kerala reaffirms its commitment to protecting workers’ welfare in both traditional commercial sectors and the rapidly expanding technology domain. The updated structure offers a fair balance between employee welfare and industrial sustainability.