Minimum wages revised from October 1 will benefit workers covered under the Central Government’s minimum-wage framework, with higher rates coming into effect after the Variable Dearness Allowance (VDA) was updated.
The revised VDA was ordered on September 30 and is effective from October 1, 2026.
The revision is linked to changes in the Consumer Price Index for Industrial Workers, which rose from 424.80 to 431.42 as of June 30, an increase of 6.62 points.
The revised rates apply to several categories of workers for whom minimum wages are fixed by the Central Government.
These include workers in agriculture, construction and maintenance, loading and unloading, sweeping and cleaning, watch and ward duties and certain mining activities.
Minimum Wages Revised From October 1
The revised wages vary according to the type of work, skill level and whether the workplace falls under Area A, B or C. The applicable minimum wage combines the basic wage with the revised VDA.
For construction and maintenance work, an unskilled worker in Area A will now receive a minimum wage of Rs 840 per day. The corresponding rates are Rs 704 in Area B and Rs 565 in Area C.
For semi-skilled or unskilled supervisory workers, the daily minimum wage has been fixed at Rs 933 in Area A, Rs 794 in Area B and Rs 661 in Area C.
Skilled or clerical workers will receive Rs 1,024 per day in Area A, Rs 933 in Area B and Rs 794 in Area C.
For highly skilled workers, the rates are Rs 1,111, Rs 1,024 and Rs 933 per day in Areas A, B and C respectively.
Agriculture Workers Also Get Higher Rates
Agricultural workers will also receive revised minimum wages from October 1.
For unskilled workers, the daily minimum wage is now Rs 537 in Area A, Rs 491 in Area B and Rs 486 in Area C.
The rates for semi-skilled or unskilled supervisory agricultural workers are Rs 587 in Area A, Rs 539 in Area B and Rs 496 in Area C. Skilled or clerical workers will receive Rs 637, Rs 587 and Rs 538 respectively.
For highly skilled agricultural workers, the revised daily minimum wage stands at Rs 705 in Area A, Rs 655 in Area B and Rs 587 in Area C.
How the Revised VDA Affects Wages
The VDA is an inflation-linked component of minimum wages.
It is revised according to changes in the Consumer Price Index for Industrial Workers so that minimum wage rates can reflect changes in living costs.
For construction workers, the revised VDA for unskilled workers is Rs 317 per day in Area A, Rs 267 in Area B and Rs 215 in Area C.
For highly skilled workers, the VDA is Rs 418, Rs 387 and Rs 354 respectively.
In agriculture, the revised VDA for unskilled workers is Rs 204 per day in Area A, Rs 188 in Area B and Rs 186 in Area C. The final minimum wage is calculated by adding the applicable VDA to the basic wage.
The October revision therefore means minimum wages revised from October 1 now reflect the latest inflation-linked adjustment for workers covered by the Central Government’s wage framework.
Why Area Classification Matters
The minimum wage is not the same across all locations.
The Central Government’s framework divides cities and areas into A, B and C categories, meaning workers in the same occupation and skill category can have different minimum wage rates depending on where they work.
The revised rates are applicable from October 1, 2026, following the Labour Bureau’s VDA order dated September 30.
