Labour Bureau raises variable dearness allowance, boosting minimum wages from Oct. 1
The Labour Bureau of the Ministry of Labour & Employment announced higher Variable Dearness Allowance rates effective Oct 1 2026, increasing minimum wages for agricultural and construction workers.
In a statement dated Oct 1, the Labour Bureau exercised authority under Notification No. S.O. 2451(E) to adjust Variable Dearness Allowance rates for employees in agriculture and construction, effective Oct 1 2026. The revision follows a 6.62-point rise in the Consumer Price Index for Industrial Workers, reaching 431.42 from 424.80 as of June 30 2026. For agricultural workers, the minimum daily wage in Area A will be Rs 537 for unskilled labor (Rs 333 basic + Rs 204 VDA) and Rs 705 for highly skilled labor (Rs 438 basic + Rs 267 VDA).
Similar VDA updates apply to construction and related utility work categories. The VDA component is inflation-linked and has been rounded up to the next rupee per the Minimum Wages Advisory Board's decision, forming part of the overall minimum wage calculation.
Why it matters
Higher VDA rates increase the take-home pay of millions of low-income workers, affecting household incomes and inflation adjustments.
In this story
