Background
Under the Minimum Wages Act, 1948 (Central Act No. 11 of 1948), the minimum rate of wages fixed for scheduled employments may consist of a basic rate together with a cost-of-living allowance that is adjusted periodically in line with the Consumer Price Index (Section 4(1)(i)). The Labour Commissioner, Union Territory of Chandigarh, issued Order No. ST/(CPI)/2026-27/1980 dated September 7, 2026, revising the minimum rates of wages for monthly- and daily-rated employees in Chandigarh for the half-year from April 1, 2026 to September 30, 2026, on the basis of the Consumer Price Index for Industrial Workers (Chandigarh Centre) for the half-year ending March 2026. The order also prescribes separate rates for hotels, restaurants, tea stalls and halwai establishments where food and lodging are provided by the employer.
Applicability
These revised rates apply to all employers in the Union Territory of Chandigarh engaging monthly- or daily-rated employees in the scheduled employments to which the Chandigarh Administration’s minimum wage notifications apply, across the nine categories of employees notified on November 25, 2010 — Unskilled, Semi-Skilled-II, Semi-Skilled-I, Skilled-II, Skilled-I, Highly Skilled, and Class III, Class II and Class I (Staff) — including employers running hotels, restaurants, tea stalls and halwai establishments, for whom separate rates apply where food and lodging are provided.
Compliance Requirements
The average Cost of Living Index Number for industrial workers at the Chandigarh Centre for October 2025 to March 2026 stands at 2,270 points, against 2,245 points for the period ending September 2025 – an increase of 25 points. At a neutralisation rate of ₹7 per point for monthly-rated employees, the minimum monthly wage for every category has been raised by ₹175, applicable from April 1, 2026 to September 30, 2026. The daily rates correspond to the monthly rate divided by 26.
Category of Employee | Old Monthly Rate (₹) 01.10.2025 – 31.03.2026 | Old Daily Rate (₹) | New Monthly Rate (₹) 01.04.2026 – 30.09.2026 | New Daily Rate (₹) |
Unskilled | 14,562 | 560 | 14,737 | 567 |
Semi-Skilled-II | 14,712 | 566 | 14,887 | 573 |
Semi-Skilled-I | 14,812 | 570 | 14,987 | 576 |
Skilled-II | 15,012 | 577 | 15,187 | 584 |
Skilled-I | 15,237 | 586 | 15,412 | 593 |
Highly Skilled | 15,637 | 601 | 15,812 | 608 |
Class III (Staff) | 14,837 | 571 | 15,012 | 577 |
Class II (Staff) | 14,987 | 576 | 15,162 | 583 |
Class I (Staff) | 15,347 | 590 | 15,522 | 597 |
For employees of hotels, restaurants, tea stalls and halwai establishments, the order prescribes three figures for each category: the full wage payable where the employer does not provide food and lodging (identical to the general rate), the reduced cash wage payable where food and lodging are provided, and the value attributed to food and lodging, which works out to one-eighth of the full wage. Any future change in the cost-of-living index is to be adjusted in the ratio 7:1 — seven parts in cash and one part towards two meals and two teas.
Category of Employee | Without Food and Lodging (₹/month) | With Food and Lodging (₹/month) | Value of Food and Lodging (₹/month) |
Unskilled | 14,737 | 12,895 | 1,842 |
Semi-Skilled-II | 14,887 | 13,026 | 1,861 |
Semi-Skilled-I | 14,987 | 13,154* | 1,873 |
Skilled-II | 15,187 | 13,289 | 1,898 |
Skilled-I | 15,412 | 13,485 | 1,927 |
Highly Skilled | 15,812 | 13,835 | 1,977 |
Class III (Staff) | 15,012 | 13,135 | 1,877 |
Class II (Staff) | 15,162 | 13,267 | 1,895 |
Class I (Staff) | 15,522 | 13,582 | 1,940 |
Employees are classified into nine categories based on educational qualification, trade certification and nature of work. An employee doing work similar in nature to any listed occupation falls within the same category. The table below summarises each category; the order sets out the full list of occupations under each.
Category | Qualifying Criteria | Illustrative Occupations |
Unskilled | No qualification prescribed; manual or assisting work | Loaders, diggers, cleaners, sweepers, gardeners/malis, guards, packers, peons, gatemen, watchmen/chowkidars, beldars, mazdoors, khalasis, ayas, vehicle cleaners |
Semi-Skilled-II | Below intermediate level, with skill acquired through experience on a machine or in a trade | Plumbers, tailors, barbers, pump attendants, carpenters, waiters, delivery staff, assistant cooks, light-vehicle drivers, conductors, welders, fitters, motor and diesel mechanics, meter readers |
Semi-Skilled-I | Intermediate pass with machine experience, or at least five years in Semi-Skilled-II work | Drivers of medium/heavy/special vehicles, halwais, cooks, stewards, head waiters, photographers, computer operators, checkers, inspectors, weavers, dyers, lab assistants |
Skilled-II | Certificate in a technical or professional trade from a recognised institution, working in that trade | Electricians, machinists, turners, welders, painters, goldsmiths, AC and refrigeration mechanics, chemists, compounders, printers, computer mechanics, software developers |
Skilled-I | Diploma holder working in that discipline, or a graduate doing Skilled-II work | Medical representatives, advertisers, marketing professionals, chefs, technical supervisors |
Highly Skilled | Engineering or professional graduate working in that discipline, or a foreman/manager/executive/officer without managerial powers | Foremen, managers, executives, officers (non-managerial) |
Class III (Staff) | Matriculation or equivalent; office or similar work | Clerks, time keepers, munshis, store keepers, accounts assistants, typists, receptionists, cashiers, draftsmen, telephone operators, nurses, technologists, radiologists |
Class II (Staff) | Non-technical graduate doing Class III work at a senior designation below Class I | Accountants, stenographers, work in-charges, office supervisors, salesmen, purchase staff, store in-charges, architects |
Class I (Staff) | Officer-level positions without authority to exercise managerial functions | Assistant managers, engineers, officers, medical officers, doctors, dentists, surgeons, pharmacists, vaids, hakims, homeopaths |
The following conditions apply to the rates notified under the order:
Penalty and Consequences
Under Section 22 of the Minimum Wages Act, 1948, an employer who pays an employee less than the minimum rate of wages fixed for that employee’s class of work, or who contravenes any rule or order made under Section 13 of the Act, is punishable with imprisonment for a term extending up to six months, or with fine extending up to ₹500, or with both.
Under Section 22A of the Act, any employer who contravenes any other provision of the Act or of any rule or order made thereunder, for which no specific penalty is otherwise provided, is punishable with a fine extending up to ₹500.
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