Central Government Revises Variable Dearness Allowance; Check New Minimum Wages Effective October 1
The central government has revised the Variable Dearness Allowance, increasing minimum wages for construction, agriculture, and other workers nationwide, effective October 1. The latest revision, issued under the Code on Wages, applies to central-sphere workers engaged in scheduled employments such as construction and maintenance, sweeping and cleaning, loading and unloading, watch and ward duties, and agriculture.
The Centre has officially revised the Variable Dearness Allowance (VDA), leading to an increase in minimum wage rates for various categories of workers nationwide, effective October 1. The adjustment is designed to shield workers from inflation by updating the component tied to consumer price movements.
Understanding the VDA Revision and Scope
The Variable Dearness Allowance serves as the inflation-linked component of minimum wages and is revised biannually by the central government based on fluctuations in the Consumer Price Index for Industrial Workers (CPI-IW), reports Livemint. 8th Pay Commission Delay Could Cost Level 7 Employees up to INR 3.32 Lakh.
The latest revision, issued under the Code on Wages, applies to central-sphere workers engaged in scheduled employments such as construction and maintenance, sweeping and cleaning, loading and unloading, watch and ward duties, and agriculture. Officials note that these rates function as central benchmarks, meaning state-specific employments may continue to be governed independently by respective state notifications.
Revised Minimum Wage Structure for Construction Workers
For construction and maintenance sectors, daily earnings now vary according to skill classification and geographical area categorisation (Areas A, B, and C).
| Worker Category | Area A | Area B | Area C |
| Unskilled | 840 | 704 | 565 |
| Semi-skilled / Unskilled Supervisory | 933 | 794 | 661 |
| Skilled / Clerical | 1,111 | 1,024 | 933 |
(Source: Labour Bureau, Ministry of Labour and Employment, VDA orders effective October 1.)
Revised Rates for Agricultural Workers
Agricultural employees have also received upward revisions combining their basic pay with the updated VDA component. For instance, unskilled agricultural workers are now entitled to revised daily minimums across different city classifications. 8th Pay Commission Salary Hike: How Much Could Basic Pay Rise Under 2.57 Fitment Factor?
| Worker Category | Area A | Area B | Area C |
| Unskilled | 537 | 491 | 486 |
| Semi-skilled / Unskilled Supervisory | 587 | 539 | 496 |
| Skilled / Clerical | 705 | 655 | 587 |
(Source: Labour Bureau, Ministry of Labour and Employment.)
Additionally, revised VDA components for unskilled agricultural categories amount to INR 204 per day in Area A, INR 188 in Area B, and INR 186 in Area C. Other categories, including watch and ward personnel (both armed and unarmed) and port/dock loaders, have similarly received scaled-up adjustments under the October notification.
(The above story first appeared on LatestLY on Oct 05, 2026 07:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).