You choose a 22K gold necklace in Mumbai. The metal cost is ₹1,38,750. You expect to pay something close to that. But by the time the jeweller finishes - making charges, wastage, and GST - the bill is ₹1,70,000. The gap between what gold costs and what jewellery costs is making charges, and most buyers do not fully understand what they are, how they vary, and when they are reasonable. This guide explains everything you need to know before stepping into any jewellery shop in India in 2026. Check the live gold rate today before you go - the metal cost is the first number you need to know.
What Are Making Charges and Why Do They Exist?
Making charges (also called labour charges or wastage charges) are the fee a jeweller adds on top of the pure metal cost to cover: the skill and time of the goldsmith (karigar) who created the piece; the design cost if the piece uses a proprietary pattern; the cost of tools, equipment, and studio overhead; and any metal lost during the manufacturing process (wastage). For a plain machine-made chain, making charges cover minimal skilled labour and should be low. For an intricate hand-engraved bridal necklace, making charges cover hundreds of hours of skilled artisan work and are legitimately higher.
How Making Charges Are Calculated: Three Methods
Jewellers use three different methods to quote making charges, and understanding which method is being applied is essential to comparing prices across shops:
- Per gram (flat rate): A fixed rupee amount per gram of gold in the piece. Example: ₹250 per gram on a 15-gram piece = ₹3,750 in making charges. This is the most transparent and common method for plain jewellery. Always ask for the per-gram making charge in writing.
- Percentage of gold value: Making charges calculated as a percentage of the metal value. Example: 12% on ₹1,38,750 metal value = ₹16,650 in making charges. This method inflates making charges when gold prices are high - 12% on ₹1,38,750 today is a very different amount than 12% on ₹45,000 three years ago. Premium jewellers and branded showrooms often use this method for designer pieces.
- Per piece (flat fee for a specific item): Used for standardised items like rings or pendants. Example: ₹1,500 making charge for a standard solitaire pendant regardless of weight. This is common at large branded chains like Tanishq and Malabar Gold.
City-Wise Making Charge Ranges in India 2026
Making charges vary significantly by city and type of jewellery. Here is a guide based on current market norms:
- Mumbai (Zaveri Bazaar): Machine-made pieces ₹150–₹280/gram. Handcrafted ₹350–₹600/gram. Temple jewellery ₹600-₹1,200/gram.
- Delhi (Karol Bagh, Chandni Chowk): Machine-made ₹180–₹320/gram. Meenakari work ₹500–₹900/gram. Kundan bridal sets ₹900-₹2,000/gram.
- Jaipur (Johari Bazaar): Plain jewellery ₹150-₹280/gram. Kundan and Polki work ₹800-₹2,500/gram - highest in India for speciality work.
- Chennai (T. Nagar): Temple jewellery ₹350-₹800/gram. Plain pieces ₹150-₹250/gram. South Indian bridal sets ₹300-₹600/gram.
- Hyderabad (Lad Bazaar): Polki and Kundan work ₹800-₹2,000/gram. Plain pieces ₹200-₹400/gram.
- Thrissur and Kerala: Among India's most competitive - plain pieces ₹140–₹250/gram. Kasumala and Nagapadam designs ₹250-₹600/gram.
- Ahmedabad (Manek Chowk): Plain pieces ₹150-₹280/gram. Jadtar stone-inlaid ₹500-₹1,000/gram.
Wastage Charges: What Is Legitimate and What Is Inflated
Wastage charges are supposed to compensate for metal lost during the manufacturing process. For machine-made jewellery produced in automated factories, actual wastage is negligible - close to zero. Some jewellers still add 2–5% wastage on machine-made pieces as a disguised profit margin. For genuinely hand-crafted pieces, legitimate wastage is typically 1–2%. Anything above 5% wastage on any piece warrants a direct question about how the figure was arrived at. Always ask for making charges and wastage to be quoted as separate line items - if a jeweller combines them into one undifferentiated "making and wastage" charge, you cannot assess whether either is reasonable.
How to Negotiate Making Charges
Making charges are the one component of a gold jewellery purchase that is legitimately negotiable in India, particularly at non-branded local jewellers. Effective approaches: shop in the quieter months (June–August, post-wedding season) when jewellers have less footfall and more flexibility; compare making charges at 2–3 shops before committing; ask explicitly "what is your making charge per gram on this design" before expressing interest in buying; for large wedding purchases above 100 grams total, negotiate a flat making charge deal for the full set rather than per-gram individual pricing. Branded showrooms (Tanishq, Kalyan, Malabar, PC Jewellers) typically have fixed making charges that are less negotiable but offer standardised quality and exchange policies. Use our making charges calculator to compute the exact fair total for any piece before entering any shop, and compare with the gold rate in your city to ensure the base metal rate is correct.
