LatestCorporate Compliance 5 October 2026
Oct 1 2026 VDA Boost Raises Minimum Wages Across Sectors
From 1 October 2026 the central government will adjust the Variable Dearness Allowance (VDA) for workers, raising the minimum wages for construction, agriculture, and several other categories. The changes are tied to the CPI‑IW rise to 431.42, set a new wage ceiling of ₹25,000 per month under the 2020 Social Security Code, and will affect EPF contributions and related gratuity rules.
Key updates effective 1 Oct 2026
- Variable Dearness Allowance revised based on CPI‑IW (431.42) → higher minimum wages for construction, agriculture, etc. (Mint)
- New central‑sphere minimum wage rates published; not a universal salary floor.
- Wage ceiling raised to â‚ą25,000 per month under the 2020 Social Security Code, impacting EPF and EPS contributions. (Staff News, Economic Times)
- Related changes include higher EPF wage ceiling and updated gratuity rules for certain employees. (Economic Times EPF)
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