Govt. of Kerala issued amendments to the Kerala Motor Transport Workers’ Payment of Fair Wages Act, 1971

Jun 19, 2026 | by TeamLease RegTech Legal Research Team

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Labour ComplianceThe Government of Kerala on June 18, 2026, issued amendments to the Kerala Motor Transport Workers’ Payment of Fair Wages Act, 1971.

The following has been stated:-

•The Government of Kerala has revised Schedule A under the Kerala Motor Transport Workers’ Payment of Fair Wages Act, 1971, effective from January 01, 2025, introducing new pay scales for workers across various categories and employer classes based on fleet size. 

•In addition to the revised basic pay, workers will receive Dearness Allowance linked to the All India Consumer Price Index, House Rent Allowance of ₹750 per month, and Washing Allowance of ₹250 per month. 

•Workers with less than one year of service will be placed at the minimum of the revised pay scale, while those with five or more years of service will receive service weightage of up to five increments. 

•Employees completing ten years of continuous service without promotion will be eligible for time-bound higher grades or senior grades. Category VI workers qualifying for higher grades will receive an additional increment. 

•The amendment also provides annual stagnation increments for employees who reach the maximum of their pay scale, ensuring continued wage progression and improved compensation benefits for motor transport workers.

The detailed notification is given in the document below.

[Notification No.: G.O.(Ms)No.22/2026/LBR.]


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