VDA hike: Workers' wages increased from October 1
On October 1, the government raised the Variable Dearness Allowance (VDA) for workers across various sectors, including agriculture and construction. This change became effective immediately, resulting in higher minimum wages for employees in these fields.
The Labour Bureau of the Ministry of Labour & Employment announced the revised VDA based on the Consumer Price Index for Industrial Workers, which rose from 424.80 to 431.42 as of June 30, 2026. This increase of 6.62 points led to an adjusted VDA for workers.
In agriculture, an unskilled worker in Area A will now earn a minimum wage of Rs 537 per day, consisting of a basic wage of Rs 333 and a VDA of Rs 204. For a highly skilled worker, the minimum wage will be Rs 705 per day. Construction workers also saw an increase, with unskilled laborers now earning a minimum of Rs 840 per day in Area A, compared to Rs 565 in construction.
The VDA is a variable component added to the basic wage to account for inflation and rising costs of living. It is calculated based on the average Consumer Price Index for Industrial Workers, which serves as the standard for determining wage adjustments across industries.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
