New Minimum Wages for Construction, Agriculture Workers From October 1

The Labour Bureau has revised the Variable Dearness Allowance (VDA) for workers covered under the Central Government’s minimum wage framework, increasing the applicable minimum wages from October 1, 2026. The revision covers agriculture, construction and maintenance, mining, loading and unloading, sweeping and cleaning, and watch and ward duties.

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The revised VDA was notified by the Labour Bureau, Ministry of Labour and Employment, on September 30, 2026. The revision is based on the Consumer Price Index for Industrial Workers (CPI-IW), which increased to 431.42 as of June 30, 2026, from 424.80, a rise of 6.62 points.

Revised Minimum Wages From October 1

The final minimum wage depends on the type of work, skill category and geographical classification. The Central Government classifies applicable locations into Areas A, B and C. For construction and maintenance workers, the revised daily minimum wages are:

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For agriculture workers, the revised daily minimum wage for an unskilled worker is ₹537 in Area A, ₹491 in Area B and ₹486 in Area C. The rates increase for higher skill categories.

What HR and Employers Need to Know

The VDA is the inflation-linked component of minimum wages and is revised twice a year in the central sphere. The October revision therefore changes the total minimum wage payable to workers covered by the relevant central notifications.

Also Read: EPF Wage Ceiling Hike: Employers Told Not to Cut Salaries

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For employers and HR teams, the key points are:

• The revised rates apply from October 1, 2026.
• The applicable rate depends on the scheduled employment, skill category and Area A, B or C classification.
• The central-sphere rates apply to the employments covered by the relevant Central Government notifications.
• Employers should separately check applicable state minimum-wage rates where the state government is the appropriate authority.

The revision is particularly relevant for companies using contract labour in construction, infrastructure, logistics, mining, housekeeping and other covered activities.

Payroll and compliance teams should review wage structures and contractor payments to ensure that applicable minimum-wage rates are followed from October 1.

Final Words

The revised minimum wages apply to workers covered under the Central Government’s minimum-wage framework for specified employments.

They are not a uniform minimum-wage revision for all workers across India. Workers covered by state-specific wage regulations will continue to be governed by the applicable state minimum-wage notifications.