The minimum wage in India changed again on 1 October 2026, at least for the workers whose pay floor is fixed by the Central Government. The Labour Bureau, Chandigarh, issued its Variable Dearness Allowance (VDA) order on 30 September 2026, and from that date an unskilled construction, loading or cleaning worker in an Area A city such as Delhi, Mumbai or Bengaluru must be paid at least ₹840 a day. This guide explains the new central-sphere rates, who they actually cover, how they compare with the April 2026 figures and what a worker can expect to take home after deductions.
What changed in the minimum wage in India on 1 October 2026
Central minimum wages have two parts: a basic rate, which the Ministry of Labour and Employment notifies, and the VDA, which moves with inflation. The October order (File No. 6/1/2026-VDA, dated 30 September 2026) keeps the basic rates unchanged and revises only the VDA. It was issued under sub-section (2) of Section 69 of the Code on Wages, 2019, and refers to the Central Government notification S.O. 2451(E) of 12 May 2026.
The trigger is the Consumer Price Index for Industrial Workers (CPI-IW, base 2016=100). According to the order, the average CPI-IW rose from 424.80 to 431.42 as on 30 June 2026, an increase of 6.62 points. The VDA is recalculated on that basis and rounded up to the next rupee. The revised rates apply from 1 October 2026 to 31 March 2027.
The Code on Wages itself has been in force since 21 November 2025, when the four Labour Codes replaced 29 older labour laws. The Code provides for a minimum wage for all workers and for a national floor wage, but the October VDA order is about the central-sphere schedule only; it does not announce a single national rupee figure for every job.
Who the central rates cover
These rates bind employers where the Central Government is the appropriate government: central public sector undertakings, railways, mines, major ports, airports and similar establishments, plus contractors working for them. The order lists seven kinds of scheduled work:
- agriculture;
- construction or maintenance of roads, runways, buildings and utility works such as cabling, water supply and sewerage pipelines;
- sweeping and cleaning;
- watch and ward, with or without arms;
- loading and unloading at railway goods sheds, godowns, docks, ports and airport cargo;
- specified non-coal mines, above and below ground;
- stone mines, which are paid by piece rate.
Most private shops, farms and building sites follow the rates fixed by their own state government instead. If you work for a private employer that has no link to a central establishment, check your state labour department’s latest notification, because the central figures below may not be the legal floor for you.
Central-sphere minimum wage rates from October 2026
All figures below are daily rates in rupees (basic plus VDA) as set out in the 30 September 2026 order, valid from 1 October 2026. Area A covers the largest urban centres, including Delhi, Greater Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Lucknow, Kanpur, Nagpur, Navi Mumbai, Noida, Ghaziabad, Gurgaon, the Faridabad complex and Secunderabad. Area B is a longer list that includes Jaipur, Patna, Bhopal, Indore, Chandigarh and Ludhiana. Area C is everywhere else.
| Skill category | Area A | Area B | Area C |
|---|---|---|---|
| Unskilled | 840 | 704 | 565 |
| Semi-skilled / unskilled supervisory | 933 | 794 | 661 |
| Skilled / clerical | 1,024 | 933 | 794 |
| Highly skilled | 1,111 | 1,024 | 933 |
For an unskilled worker in Area A, the ₹840 is made up of ₹523 basic and ₹317 VDA. Loading and unloading, and sweeping and cleaning, carry the same unskilled rates as construction: ₹840, ₹704 and ₹565 in Areas A, B and C. Watch and ward staff without arms get ₹1,024, ₹933 and ₹794, while armed guards get ₹1,111, ₹1,024 and ₹933.
Agriculture sits much lower. An unskilled farm worker in the central sphere is entitled to ₹537 in Area A, ₹491 in Area B and ₹486 in Area C, rising to ₹705, ₹655 and ₹587 for highly skilled work. In non-coal mines the rates do not vary by area: unskilled work pays ₹565 above ground and ₹704 below ground, and highly skilled work pays ₹979 above ground and ₹1,095 below ground.
How the new rates compare with April 2026
Because the basic rates stay fixed, the half-yearly change is modest and comes entirely from the VDA. The comparison below uses sweeping and cleaning, and loading and unloading, where the rates in force from 1 April 2026 were published area by area.
| Area | VDA from 1 April 2026 | Total from 1 April 2026 | VDA from 1 October 2026 | Total from 1 October 2026 | Increase per day |
|---|---|---|---|---|---|
| Area A | 304 | 827 | 317 | 840 | 13 |
| Area B | 256 | 693 | 267 | 704 | 11 |
| Area C | 206 | 556 | 215 | 565 | 9 |
In other words, a rise of roughly 1.6 per cent for the lowest-paid central-sphere workers. That is small, but it compounds: every six months the dearness component catches up with consumer prices, while the basic part only moves when the Ministry revises it. Workers who track pay closely should note both numbers on their wage slip, not just the total.
Worked example: from daily rate to monthly take-home pay
Take Meena, a hypothetical contract worker doing loading and unloading at a railway goods shed in Jaipur, which is in Area B. Assume she works 26 paid days in October 2026. The figures for contributions come from the current ESIC and EPF rules described below; the 26-day month is our assumption, not part of the order.
- Gross wage: ₹704 × 26 = ₹18,304 for the month. In April 2026 the same 26 days would have paid ₹693 × 26 = ₹18,018, so the October revision is worth ₹286 a month to her.
- ESIC: her monthly wage is below the ₹21,000 ESIC ceiling and her daily wage is above the ₹176 exemption threshold, so she pays 0.75 per cent: about ₹137. Her employer adds 3.25 per cent on top.
- EPF: the employee share is 12 per cent. Under the old ₹15,000 wage ceiling, the mandatory deduction is 12 per cent of ₹15,000, or ₹1,800. If the ₹25,000 ceiling approved by the Union Cabinet on 16 September 2026 applies to her payroll, 12 per cent of her full ₹18,304 is about ₹2,196.
- Take-home: roughly ₹18,304 − ₹137 − ₹1,800 = ₹16,367 under the old ceiling, or about ₹15,971 if the higher ceiling is in effect for her. The provident fund money is not lost; it is saved in her account along with her employer’s matching share.
Now compare an unskilled worker doing the same job in Delhi (Area A) at ₹840 a day. Twenty-six days come to ₹21,840, which is above the ₹21,000 ESIC ceiling. Earning slightly more on paper can therefore mean dropping out of ESIC health cover, a trade-off worth understanding before you accept overtime or a higher grade.
If you want to see how these floors compare with what people actually earn, read our guide to the average salary in India in 2026, which uses official PLFS data.
What workers and employers should check now
- Your area: the same job pays ₹275 more per day in Area A than in Area C for unskilled construction work. Ask which area your site is classified under.
- Your skill category: moving from unskilled to semi-skilled raises the Area A rate from ₹840 to ₹933. Training certificates and accurate job descriptions matter.
- Arrears: the revised VDA is due from 1 October 2026. If your October wages were calculated at the old rate, the difference is owed.
- State rates: if you are not in a central-sphere establishment, the relevant figure comes from your state government, and states revise on their own timetable.
For context on how many young people are still looking for work, see our analysis of the unemployment rate in India for September 2026. And if you are ready to move to a better-paid role, you can browse current jobs or build a free resume in a few minutes.
Frequently asked questions about the minimum wage in India
Is there one minimum wage for the whole of India?
No. The Code on Wages provides for a national floor wage, but actual minimum rates are fixed separately by the Central Government for central-sphere employment and by each state for its own scheduled employments. Rates differ by type of work, skill level and area.
What is the central minimum wage for an unskilled worker from October 2026?
For construction, loading and unloading, and sweeping and cleaning, it is ₹840 a day in Area A, ₹704 in Area B and ₹565 in Area C, from 1 October 2026 to 31 March 2027. Unskilled agricultural work is ₹537, ₹491 and ₹486.
Why does the minimum wage change every six months?
The VDA part is linked to the CPI-IW. When the index rises, the Labour Bureau revises the VDA, which happened with effect from 1 April 2026 and again from 1 October 2026. The basic part changes only when the Ministry issues a fresh notification.
Does the central rate apply to a private office or shop?
Usually not. Central rates apply where the Central Government is the appropriate government, such as railways, major ports, airports, mines and central public sector undertakings, including their contractors. Most private employers follow the state rate.
How are monthly wages worked out from a daily rate?
The order sets daily rates only. Payroll normally multiplies the daily rate by the number of paid days in the month, which is how our example reached ₹18,304 for 26 days in Area B. Check your appointment letter for how your employer counts paid days.
Do minimum-wage workers have to pay ESIC and EPF?
If the establishment is covered, yes in most cases. The ESIC employee share is 0.75 per cent for wages up to ₹21,000 a month, waived for average daily wages up to ₹176. The EPF employee share is 12 per cent of wages, subject to the wage ceiling in force.
Conclusion
The October 2026 revision lifts central-sphere minimum wages by ₹9 to ₹13 a day for unskilled work, putting the Area A floor at ₹840. It is a small step, but for a worker on 26 paid days it adds a few hundred rupees a month, and it is legally due from 1 October. Know your area, your skill category and whether your employer falls under central or state rules, because those three facts decide which number on the schedule is yours.
Sources: Labour Bureau, Ministry of Labour and Employment, VDA order File No. 6/1/2026-VDA dated 30 September 2026 (as reproduced by StaffNews, SGCMS, Indian Pay Calculator and HR Informative); SCC Times on the VDA rates from 1 April 2026; SCC Times on the Labour Codes coming into force on 21 November 2025; ClearTax on ESI contribution rates; PTI via The Tribune on EPF contribution rules; Union Cabinet decision of 16 September 2026 on the EPFO wage ceiling as reported by Business Today and reproduced from PIB by StaffNews.
