Variable Dearness Allowance revised from Oct 1: Check new minimum wages for construction, agriculture and other workers

The Labour Bureau revised minimum wages effective October 1, 2026, increasing rates for agricultural and other workers. The Variable Dearness Allowance, tied to inflation adjustments, raised daily wages for unskilled agricultural workers to ₹537, ₹491, and ₹486 in Areas A, B, and C respectively.

Workers in several sectors covered by the Centre’s minimum-wage framework will receive higher minimum wages from 1 October 2026 after the Labour Bureau revised the Variable Dearness Allowance (VDA) linked to inflation.

The Labour Bureau, under the Ministry of Labour and Employment, issued the revised VDA order on 30 September. The revision is based on the average Consumer Price Index for Industrial Workers (CPI-IW), which rose to 431.42 as of 30 June 2026 from 424.80. This represents an increase of 6.62 points. The revised VDA is effective from 1 October 2026.

The revised rates apply to workers in employment categories for which minimum wages are fixed by the central government. These include agriculture, construction and maintenance, loading and unloading, sweeping and cleaning, watch and ward duties and certain mining activities. The order has been issued under Section 69(2) of the Code on Wages, 2019.

Construction workers: minimum wage rises to ₹840 a day for unskilled workers in Area A

For construction and maintenance work, the revised minimum wage depends on the worker's skill category and whether the workplace falls in Area A, B or C.

The rates comprise the basic minimum wage and the revised VDA. For example, an unskilled construction worker in Area A has a basic wage of ₹523 and VDA of ₹317, taking the total minimum wage to ₹840 a day. For a highly skilled worker in the same area, the basic wage is ₹693 and VDA is ₹418, taking the total to ₹1,111 a day.