Now Reading: Government hikes VDA for farm, construction workers from 1 October
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Government hikes VDA for farm, construction workers from 1 October
The government has revised the Variable Dearness Allowance (VDA) for workers in agriculture, construction, and maintenance sectors, effective 1 October 2026. The revision raises minimum daily wages across skill categories and is based on the average Consumer Price Index for Industrial Workers (CPI-IW) rising from 424.80 to 431.42 (base 2016=100), a 6.62-point increase.
Under the new rates, an unskilled agricultural worker in Area A will now earn at least Rs 537 per day (Rs 333 basic wage plus Rs 204 VDA), while a highly skilled worker in the same area will get Rs 705 per day (Rs 438 basic plus Rs 267 VDA). For construction workers in Area A, an unskilled labourer's minimum wage becomes Rs 840 per day, and a highly skilled worker's minimum reaches Rs 1,111 per day.
The VDA is a variable component linked to the CPI-IW and is added to the basic wage to arrive at the minimum wage. The revised VDA has been rounded off to the next higher rupee as decided by the Minimum Wages Advisory Board.
Indian Opinion Analysis
The VDA revision directly raises take-home pay for lakhs of workers in agriculture and construction, sectors with high informal employment. The 6.62-point CPI-IW increase reflects rising living costs between January and June 2026, and the government's adjustment keeps minimum wages linked to inflation. However, the VDA covers only a part of the wage, compliance and enforcement remain separate issues. The next revision will depend on CPI-IW data for the following six-month period.
Source: tv9hindi.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
