DA Hike Update: The Ministry of Labour and Employment has revised the Variable Dearness Allowance (VDA) for workers covered under the central sphere’s minimum wage system. The revised rates have come into effect from October 1, 2026, providing an increase in daily wage rates for eligible workers across several sectors.
The VDA is revised twice a year, with changes taking effect on April 1 and October 1. The adjustment is linked to movements in the Consumer Price Index for Industrial Workers (CPI-IW) and is intended to help minimum-wage and unorganised-sector workers cope with changes in the cost of living.
The latest order was issued on September 30, 2026, under Section 69(2) of the Code on Wages, 2019.
CPI-IW Increase Leads to VDA Revision
The latest revision has been made on the basis of changes in the CPI-IW. The index increased by 6.62 points, moving from 424.80 to 431.42 as of June 30, 2026.
Following this change, revised VDA-linked minimum wage rates are applicable to workers employed in various central sphere sectors. These include agriculture, construction and maintenance, loading and unloading, sweeping and cleaning, watch and ward services and specified mining-related activities.
The revised rates are applicable from October 1, 2026.
Revised Minimum Wage Rates for Workers
Under the latest VDA revision, the daily wage rates vary according to the worker’s skill level and the area in which the employment falls.
| Worker Category | Area A | Area B | Area C |
|---|---|---|---|
| Unskilled | ₹537 | ₹491 | ₹486 |
| Semi-skilled / Unskilled Supervisory | ₹587 | ₹539 | ₹496 |
| Skilled / Clerical | ₹637 | ₹587 | ₹538 |
| Highly Skilled | ₹705 | ₹655 | ₹587 |
The rates are based on the VDA orders issued by the Labour Bureau, Ministry of Labour and Employment, dated September 30, 2026, and are effective from October 1, 2026.
Which Workers Are Covered Under the VDA Revision?
The revised VDA rates apply to workers employed in a wide range of specified mining activities. These include gypsum, barytes, bauxite, manganese, china clay, kyanite, copper, clay, magnesite, white clay, stone, steatite, ochre, asbestos, fire clay, chromite, quartzite, quartz, silica, graphite, felspar, laterite, dolomite, red oxide, wolfram, iron ore, granite, rock phosphate, hematite, marble, calcite, uranium, mica, lignite, gravel, slate and magnetite mines.
The revision is therefore relevant to workers covered under the central sphere’s prescribed minimum-wage framework in these sectors.
How Is Variable Dearness Allowance Calculated?
The Labour Bureau revises the VDA twice a year based on the movement in the Consumer Price Index for Industrial Workers. The calculation considers the six-month average movement of the CPI-IW.
The purpose of this mechanism is to adjust wages in line with changes in living costs. As the CPI-IW rises, the VDA is revised accordingly, resulting in changes to the minimum wage rates applicable to covered workers.
Disclaimer
This article is provided for general informational purposes and is based on the VDA order and details mentioned in the source material. Wage rates, eligibility and applicable rules may vary depending on the employment category, location and relevant government notifications. Readers should verify the latest official notification issued by the Ministry of Labour and Employment or Labour Bureau before relying on the information for employment or wage-related decisions.