VDA revised upward across all categories of employment. Uttar Pradesh has revised the Variable Dearness Allowance (VDA) effective 1 October 2026 to 31 March 2027, increasing the total minimum wages payable to unskilled, semi-skilled and skilled employees across all three geographical categories.
Old vs. New: The VDA Differential
| Category | Class of Employment | Basic (₹/Month) | Previous VDA (₹) | Previous Total (₹/Month) | Revised VDA (₹) | Revised Total (₹/Month) | Monthly Increase (₹) |
| I | Un-skilled | 12,885.00 | 805.00 | 13,690.00 | 998.59 | 13,883.59 | 193.59 |
| I | Semi-skilled | 14,173.00 | 886.00 | 15,059.00 | 1,098.41 | 15,271.41 | 212.41 |
| I | Skilled | 15,876.00 | 992.00 | 16,868.00 | 1,230.39 | 17,106.39 | 238.39 |
| II | Un-skilled | 12,241.00 | 765.00 | 13,006.00 | 948.68 | 13,189.68 | 183.68 |
| II | Semi-skilled | 13,464.00 | 842.00 | 14,306.00 | 1,043.46 | 14,507.46 | 201.46 |
| II | Skilled | 15,082.00 | 943.00 | 16,025.00 | 1,168.86 | 16,250.86 | 225.86 |
| III | Un-skilled | 11,629.00 | 727.00 | 12,356.00 | 901.25 | 12,530.25 | 174.25 |
| III | Semi-skilled | 12,791.00 | 799.00 | 13,590.00 | 991.30 | 13,782.30 | 192.30 |
| III | Skilled | 14,328.00 | 896.00 | 15,224.00 | 1,110.42 | 15,438.42 | 214.42 |
Category I: Gautam Buddha Nagar and Ghaziabad; Category II: Districts having a Nagar Nigam; Category III: Districts other than Categories I and II.
The Compliance Takeaway
- VDA increase: Ranges from ₹174.25 to ₹238.39 per month, depending on the category and skill level.
- Highest increase: Category I skilled employees, with an additional ₹238.39 per month.
- Effective period: 1 October 2026 to 31 March 2027.
- Compliance action: Employers should update their minimum-wage structures and payroll calculations from 1 October 2026.
Legal Note:
Although the Minimum Wages Act, 1948, has been repealed following the implementation of the Code on Wages, 2019, certain minimum-wage notifications continue to refer to the erstwhile legislation. In terms of Section 69(2) of the Code on Wages, 2019, notifications and actions taken under the repealed enactments are saved and continue to remain in force, to the extent they are not inconsistent with the Code, until superseded or repealed.
