Minimum Wages From 1 October 2026: A Payroll Check for Employers
Central-sphere minimum wages were revised from 1 October 2026: ₹840 a day for unskilled construction work and ₹537 for agriculture in Area A. Most private businesses follow their state's rates instead. The national floor wage is not yet notified. Check every worker against the right rate and pay arrears if needed.
Minimum wages in India move twice a year, as the variable dearness allowance (VDA) follows inflation. The central government's revision took effect on 1 October 2026. If you pay close to the minimum, October's payroll needs a check. For other states, see state-wise minimum wage rates.
What changed
The Labour Bureau's orders dated 30 September 2026 revised the VDA for central-sphere employments from 1 October 2026. Two examples for Area A:
| Employment, unskilled, Area A | Daily rate from 1 Oct 2026 |
|---|---|
| Construction (₹523 basic + ₹317 VDA) | ₹840 |
| Agriculture | ₹537 |
Rates are higher for semi-skilled, skilled and highly skilled workers, and lower in Areas B and C.
Central or state rate?
- ✓Central-sphere rates apply to establishments under the central government's authority: for example, central government undertakings, railways, mines, oilfields, major ports and banks, and contractors working for them.
- ✓Most private businesses follow their state government's minimum wages, which states revise on their own dates, often April and October.
Under the Code on Wages, a minimum wage applies to every employee, not only to listed jobs as before.
The national floor wage
The Code allows the central government to set a national floor wage below which no state may fix its minimum. As of October 2026 it has not yet been notified. An advisory figure of ₹178 a day has been used until now.
A payroll check for October
- Find the right schedule: central or your state, your industry, your area (city class), and each worker's skill category.
- Compare each worker's wage with the revised rate, using the Code's wage definition.
- Raise anyone below the rate from the effective date, and pay arrears if October's payroll has already run.
- Recheck overtime, which is twice the ordinary wage and goes up with it.
- Keep the notification on file, and display the rates where required.
A worked example
A contractor building a central government hospital in Ahmedabad (Area A) employs 120 unskilled workers at ₹800 a day. From 1 October 2026, the rate is ₹840. The difference of ₹40 a day for 120 workers over 26 days is ₹1,24,800 a month. If October's payroll was processed at ₹800, arrears are due.
Frequently asked questions
Do minimum wages include allowances?
They are compared with wages as defined in the Code: basic, DA and retaining allowance, with the 50% add-back. A large HRA does not count towards the minimum.
Do they apply to apprentices and trainees?
Apprentices under the Apprentices Act are paid a stipend under that law. Other trainees are employees and covered.
What is the penalty for underpaying?
The Code provides fines and requires the shortfall to be paid. Repeat offences carry higher penalties.
Sources
- ✓Central minimum wages revised from 1 October 2026, Labour Law Help
- ✓Central-sphere wages from 1 October: ₹840 a day for construction, Indian Pay Calculator
- ✓Minimum wages and the national floor wage, LawSikho
This is a summary, not legal advice. Check the notification for your state and industry.
Written by
HR Manager, Airwix Technologies (Sleet)
Nihit Dobariya is the HR Manager at Airwix Technologies in Ahmedabad, where he runs HR and payroll for the team behind Sleet. He writes about payroll, PF and ESIC, professional tax, the labour codes and everyday HR practice for Indian employers, and checks each rule against the official notification before it is published.
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