On 30 March 2026, the Ministry of Labour & Employment issued a series of orders revising the Variable Dearness Allowance (VDA) for multiple scheduled employments.
The revised VDA rates came into force with effect from 1 April 2026.
Key Takeaways:
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These revisions have been issued in accordance with Section 69(2) of the Code on Wages, 2019.
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The revision is based on the average Consumer Price Index for Industrial Workers (CPI-IW), which increased from 413.52 to 424.80 as on 31 December 2025 (Base Year 2016 = 100), reflecting a rise of 11.28 points.
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The revised VDA has been rounded off to the next higher rupee, as per the decision of the Minimum Wages Advisory Board.
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The revised rates are payable from 1 April 2026 and will remain in force until superseded by a fresh order under the Code on Wages, 2019.
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The notification reaffirms the three-tier area classification introduced in 2017:
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Area A: Major metropolitan urban agglomerations (e.g., Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Lucknow, etc.)
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Area B: Large cities and state capitals
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Area C: All remaining areas to which minimum wages legislation applies
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Applicable Sectors
The revised VDA rates apply to seven broad categories of scheduled employments, as summarised below:
⮚ Agriculture Employment
VDA has been revised on an area-wise (A, B and C) and skill-wise basis, ranging from ₹178 to ₹256 per day. Revised minimum daily wages (Basic + VDA) now range from approximately ₹478 for unskilled workers to ₹694 for highly skilled workers in Area A.
⮚ Mining Sector (Other than Stone Mines)
Revised VDAs have been notified for a wide range of mining activities, with separate rates for above-ground and below-groundwork. VDA now ranges from ₹206 to ₹354 per day (above ground) and ₹256 to ₹395 per day (below ground). Minimum daily wages extend up to ₹1,078 for highly skilled underground workers.
⮚ Construction and Infrastructure Works
This covers road and railway construction, building operations, and underground utility and cabling works. Revised VDA rates range from ₹206 to ₹401 per day, resulting in total daily wages between ₹556 (unskilled, Area C) and ₹1,094 (highly skilled, Area A).
⮚ Loading and Unloading Operations
Applicable to railway goods sheds, warehouses, docks, ports and airports. A uniform area-based VDA structure applies:
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Area A: ₹304
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Area B: ₹256
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Area C: ₹206
Minimum daily wages now range from ₹556 to ₹827, depending on location.
⮚ Sweeping and Cleaning Employment
For sweeping and cleaning services (excluding prohibited manual scavenging activities), revised wages follow the same area-wise structure as loading and unloading operations, with minimum daily wages of ₹827 (Area A), ₹693 (Area B) and ₹556 (Area C).
⮚ Watch and Ward Employment (With and Without Arms)
Separate VDA rates have been prescribed for watch and ward personnel with arms and without arms. For armed personnel, VDA ranges from ₹339 to ₹401 per day, with total daily wages reaching ₹1,094 in Area A.
⮚ Stone Mines (Time-Rate and Piece-Rate Work)
Stone mines continue to be treated as a distinct category, with revised VDAs notified for excavation, stone breaking/crushing and stacking activities. VDA amounts range from ₹167 to ₹1,243, depending on the nature of work. Certain piece-rate categories now attract total wages exceeding ₹3,400 per day.
[Revised Variable Dearness Allowance Rates, issued on 3-3-2026]
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