Central Minimum Wages Revised from 1 October 2026: Labour Bureau Issues Updated VDA Orders

The Labour Bureau, Ministry of Labour & Employment, has issued orders dated 30 September 2026, under File No. 6/1/2026-VDA, revising the Variable Dearness Allowance (VDA) for specified employments in the Central sphere. The revised rates are payable from 1 October 2026.

The revision affects covered workers in agriculture, specified mines, construction, stone mining, sweeping and cleaning, watch and ward, and loading and unloading operations. Employers and contractors should review their October wage calculations against the applicable employment, worker category and area classification.

The orders exercise powers under S.O. 2451(E), dated 12 May 2026, and expressly refer to Section 69(2) of the Code on Wages, 2019.

The revision reflects an increase in the average Consumer Price Index for Industrial Workers from 424.80 to 431.42, representing a rise of 6.62 points as on 30 June 2026. VDA is rounded up to the next higher rupee as stated in the orders.

The following figures are total minimum wages, including basic wages and revised VDA. All amounts are in rupees per day, except the stone-mine piece rates separately identified below.

This employment covers the construction or maintenance of roads and runways, building operations and the specified cable, electrical, water-supply and sewerage works.

The sweeping and cleaning order excludes activities prohibited under the legislation identified in that order. Loading and unloading coverage includes specified railway goods sheds and parcel offices, other goods sheds, godowns, warehouses, docks, ports and airport operations.

For both employments, the daily basic wage and VDA components are:

• Area A: ₹523 + ₹317 = ₹840

• Area B: ₹437 + ₹267 = ₹704

• Area C: ₹350 + ₹215 = ₹565

Security-service wage reviews should distinguish between duties performed with and without arms, since the order prescribes separate rates.

The mining order covers the minerals specifically listed in it, including gypsum, barytes, bauxite, manganese, copper, iron ore, granite, marble, uranium, mica and lignite. The applicable rate depends on both the worker’s classification and whether the work is performed above or below ground.

The separate stone-mine order also revises piece rates:

The first four operations carry the specified condition of 50 metres lead and 1.5 metres lift. These piece rates should not be treated as daily wage rates. The order separately preserves the entitlement of workers employed on minimum guaranteed time rates.

Area classification remains linked to the referenced notifications and the enclosed annexure. For example, Greater Mumbai, Navi Mumbai, Pune and Nagpur appear in Area A; Bhiwandi, Nashik and Surat appear in Area B. Employers should check the precise notified city or urban-agglomeration coverage for each worksite.

These Central-sphere rates do not automatically apply to every establishment across India. Applicability should be established before replacing an existing State minimum-wage schedule.

For October payroll, employers should:

• Confirm the applicable employment, skill category and geographical area.

• Update the VDA and total minimum-wage benchmarks from 1 October 2026.

• Review contractor wage sheets and supporting payment records.

• Check any consequential changes to overtime and other wage-linked calculations under the applicable provisions.

• Identify and pay any shortfall where wages for the effective period have already been processed using earlier rates.