The Labour Commissioner, Union Territory of Chandigarh, has issued Notice No. ST/(CPI)/2026-27/1980 dated 7 September 2026, revising the minimum wages in Chandigarh based on the increase in the Consumer Price Index (CPI).
The average CPI increased from 2245 to 2270, resulting in a rise of 25 points. Accordingly, the minimum wages have been increased by ₹175 per month, calculated at the neutralisation rate of ₹7 per CPI point.
Chandigarh Minimum Wage Rates 2026
After revision, the monthly minimum wages range from:
Unskilled workers: ₹14,737 per month
Highly skilled workers: ₹15,812 per month
The revised rates apply to unskilled, semi-skilled, skilled, highly skilled and Class I, II and III employees.
Separate rates have also been prescribed for employees working in:
Hotels
Restaurants
Tea stalls
Halwai establishments
Different wage rates apply depending on whether food and lodging are provided by the employer.
Effective Date of Revised Minimum Wages
The revised Chandigarh minimum wage rates are applicable for the period:
1 April 2026 to 30 September 2026
Employers must verify whether the wages paid from 1 April 2026 comply with the revised rates and calculate arrears wherever there is a short payment.
Cost of Living Allowance and Accommodation Deduction
The notification continues the applicable cost-of-living adjustment ratio of 7:1, comprising the cash component and meal or tea allowance, wherever applicable.
Employers providing accommodation may deduct a maximum of ₹50 per month from the wages of an employee.
Employer Compliance Checklist
Employers should take the following steps:
Review the salary structure and minimum wage applicability.
Recalculate wages from 1 April 2026.
Pay arrears, if any, to eligible employees.
Update wage registers and payroll records.
Issue revised wage slips.
Verify food, lodging and accommodation deductions.
Maintain records for Labour Department inspections.
Ensure future wage payments are not below the notified minimum rates.
Payment of wages below the prescribed minimum wage may lead to recovery of wage differences, penalties, interest and other legal consequences under the applicable labour laws.
Employers in Chandigarh should therefore complete a timely payroll review and ensure compliance with the revised Chandigarh minimum wages applicable from April 2026.