The Government of Kerala, through the Department of Economics & Statistics, has notified the Consumer Price Index (CPI) numbers for the month of June 2025. These figures are used to revise the minimum wages for workers in various scheduled employment categories under the Minimum Wages Act, 1948.
Legal Reference and Purpose
The CPI numbers have been published in accordance with:
- G.O.(MS) No.103/2013/LBR dated 31-08-2013
- G.O.(MS) No.34/2015/LBR dated 26-03-2015
These Government Orders empower the Labour and Skills Department to revise minimum wages based on CPI movements for Agricultural Labourers and Industrial Workers across different districts of Kerala.
The CPI serves as the Cost of Living Index, which is a key determinant in computing the Variable Dearness Allowance (VDA) added to the base wage.
What the Notification Contains
The notification provides:
- CPI figures for each centre (district/sub-district) in Kerala for June 2025.
- Comparison with May 2025 figures to show monthly movement.
- Linking Factors used to convert index values from the 1998-99 base to the 2011-12 base.
- Figures applicable to employees covered under the Minimum Wages Act, 1948 (Central Act XI of 1948).
Key CPI Numbers – June 2025
Below is a summary of the CPI index values for selected districts:
| Centre | Index (Base 2011–12 = 100) | Index (Base 1998–99 = 100) |
| Thiruvananthapuram | 217 | 458 |
| Kollam | 214 | 447 |
| Pathanamthitta | 225 | 457 |
| Kottayam | 224 | 466 |
| Idukki | 218 | 429 |
| Ernakulam | 208 | 422 |
| Kozhikode | 224 | 452 |
| Kannur | 227 | 459 |
| Kasargod | 236 | 484 |
🔹 Highest CPI (June 2025): Kasargod – 236
🔹 Lowest CPI (June 2025): Palakkad – 202
The CPI has increased across all districts compared to May 2025, reflecting a moderate rise in the cost of living across the state.
Implication for Minimum Wages
Employers and HR/payroll departments must use these revised CPI values to:
- Calculate Variable Dearness Allowance (VDA) for June 2025.
- Adjust minimum wages accordingly for workers in scheduled employments (e.g., agriculture, industry, shops, plantations, etc.).
- Ensure statutory compliance with the Minimum Wages Act.
The linking factor (ranging from 1.87 to 2.17) is applied to derive the CPI for the 2011–12 base year from the old 1998–99 base.
Download and Access
Next Steps for Employers:
- Review June 2025 CPI figures for your operational district(s).
- Update VDA components in the payroll for covered employees.
- Display revised wage notifications at the workplace (as per statutory norms).
- Maintain records for inspection by labour authorities.