Minimum Wage Rate Applicable in Jharkhand

Background

Under Section 6 of the Code on Wages, 2019 (29 of 2019), the Government of Jharkhand is empowered to fix, revise, and declare a Variable Dearness Allowance (VDA) component forming part of the minimum rates of wages payable to employees in all employments in the State, linked to movement in the Consumer Price Index.

The Labour, Employment, Training and Skill Development Department, Government of Jharkhand, issued two connected notifications dated May 25, 2026, both taking effect from April 1, 2026:

  • Notification No. 02/MW-2071/2010(Part-3), L&T-743, declaring the revised Variable Dearness Allowance rates based on the average All-India Consumer Price Index for July–December 2025; and
  • Notification No. 2/MW-2071/2010(Part-3), L&T-742, prescribing the consolidated minimum wage rates (basic rate as fixed with effect from March 11, 2024, plus the applicable VDA) for the three area-wise worker categories — A, B and C — into which the districts/areas of Jharkhand stand classified under Schedule-1.

Applicability

These revised rates apply to all employers engaging workers in any scheduled or non-scheduled employment across the State of Jharkhand, covering all categories of workers — Unskilled, Semi-Skilled, Skilled and Highly Skilled — irrespective of establishment type. The applicable rate for a given establishment depends on the area classification under Schedule-1: Category “A” areas comprise the Ranchi, Chas, Dhanbad, Deoghar and Hazaribagh Municipal Corporations, the Jamshedpur Notified Area, Mango Municipal Corporation, Jugsalai Municipal Council and Adityapur Municipal Corporation; Category “B” areas comprise all other municipal corporation, municipal council and notified areas of the State not falling in Category A; and Category “C” areas comprise all remaining (non-municipal) areas of the State.

Compliance Requirements

  1. Variable Dearness Allowance – Basis and Computation (Code on Wages, 2019, Section 6)

The notification declares the Variable Dearness Allowance payable on the minimum rates of wages fixed/revised for all categories of employees in all employments in the State, computed from the average All-India Consumer Price Index (base 2016=100) for the six months of July–December 2025, as follows:

Sl. No.

Month & Year

All-India CPI (2016=100)

1

July 2025

146.5

2

August 2025

147.1

3

September 2025

147.3

4

October 2025

147.7

5

November 2025

148.2

6

December 2025

148.2

7

Total

885

8

6-month average

885 ÷ 6 = 147.5

The six-month average of 147.5 (base 2016=100) is converted to the old series (base 2001=100) by multiplying by 2.88, giving 424.8, rounded to 425 points. This is compared against the average index of 386 points for January–June 2023 — the base period on which the basic minimum wage rates were fixed/revised with effect from March 11, 2024, following the Jharkhand Minimum Wages Advisory Board’s meeting. The resulting increase of 39 points (425 − 386) works out to a rise of 10.10%, rounded to 10%. Once fixed, the VDA rate does not reduce even if the index subsequently falls below the point at which it was determined. The VDA computed on this basis – for the period July–December 2025 – is payable with effect from April 1, 2026.

  1. Revised Minimum Wages (Basic + VDA) – Area-wise Classification (Code on Wages, 2019, Section 6(1))

Pursuant to the classification of districts/areas of Jharkhand under Schedule-1 (as agreed at the Jharkhand Minimum Wages Advisory Board meeting of October 11, 2023), the consolidated minimum wage — basic rate as fixed on March 11, 2024, plus the Variable Dearness Allowance effective April 1, 2026 — for each of the four worker categories is as follows.

Category “A” Areas

(Ranchi, Chas, Dhanbad, Deoghar and Hazaribagh Municipal Corporations; Jamshedpur Notified Area; Mango Municipal Corporation; Jugsalai Municipal Council; and Adityapur Municipal Corporation)

Category of Worker

Daily Basic (₹)

Daily VDA (₹)

Daily Total (₹)

Monthly Basic (₹)

Monthly VDA (₹)

Monthly Total (₹)

Unskilled

468

47

515

12,168

1,217

13,385

Semi-Skilled

491

49

540

12,766

1,277

14,043

Skilled

647

65

712

16,822

1,682

18,504

Highly Skilled

746

75

821

19,396

1,940

21,336

Category “B” Areas

(All other municipal corporation, municipal council and notified areas of the State, excluding Category “A” areas)

Category of Worker

Daily Basic (₹)

Daily VDA (₹)

Daily Total (₹)

Monthly Basic (₹)

Monthly VDA (₹)

Monthly Total (₹)

Unskilled

446

45

491

11,596

1,160

12,756

Semi-Skilled

468

47

515

12,168

1,217

13,385

Skilled

617

62

679

16,042

1,604

17,646

Highly Skilled

712

71

783

18,512

1,851

20,363

Category “C” Areas

(All other areas of the State, other than municipal/notified areas)

Category of Worker

Daily Basic (₹)

Daily VDA (₹)

Daily Total (₹)

Monthly Basic (₹)

Monthly VDA (₹)

Monthly Total (₹)

Unskilled

425

42*

467*

11,050

1,105

12,155

Semi-Skilled

446

45

491

11,596

1,160

12,756

Skilled

588

59

647

15,288

1,529

16,817

Highly Skilled

678

68

746

17,628

1,763

19,391

*The Category “C” daily rate for Unskilled workers is shown as ₹42 VDA/₹467 total per the notification’s official English text; the Hindi original of the same notification shows ₹43 VDA/₹468 total for this one cell (all other Category C figures, and the corresponding monthly figures, match across both versions.

  1. General Conditions Applicable to the Revised Rates

The following conditions apply uniformly across both notifications:

  • The basic minimum wage rates were revised with effect from March 11, 2024, based on the average Consumer Price Index of 386 (June 2023 series) and the consensus reached at the Jharkhand Minimum Wages Advisory Board meeting.
  • The Variable Dearness Allowance declared in this revision is based on the average Consumer Price Index of 425 for the period July–December 2025 and is payable with effect from April 1, 2026.
  • The rate of Variable Dearness Allowance has been rounded off, in the light of the consent of the Jharkhand Minimum Wages Advisory Board.
  • The rates of minimum wages are within the meaning of sub-section (1) of Section 6 of the Code on Wages, 2019.
  • Conversion between monthly and daily rates of wages is to be carried out by dividing the monthly rate by 26 (to arrive at the daily rate) and multiplying the daily rate by 26 (to arrive at the monthly rate).
  • The prescribed rates of minimum wages include the remuneration payable to employees for the day of rest in every period of seven days.
  • An employee required to work on the weekly day of rest is entitled to overtime payment at the rate prescribed under Rule 25 of the Jharkhand Minimum Wages Rules, 1951.
  • Men and women workers are entitled to the same rate of wages for the same work or work of a similar nature.
  • The notification has been issued in pursuance of sub-section (2) of Section 69 of the Code on Wages, 2019, and shall remain in force until a corresponding order is issued under sub-section (2) of Section 7 of the Code.

Penalty and Consequences

Under Section 54 of the Code on Wages, 2019, an employer who pays an employee less than the amount due under the Code — including the notified minimum rate of wages and applicable VDA — is punishable, for a first offence, with a fine extending up to ₹50,000. Where the same employer commits a similar offence again within five years of the first, the second and subsequent offences are punishable with imprisonment extending up to three months, or a fine extending up to ₹1,00,000, or both.

For contravention of any other provision of the Code, or of any rule or order made thereunder (not involving underpayment of wages), a first offence is punishable with a fine extending up to ₹20,000; a repeat offence within five years is punishable with imprisonment extending up to one month, or a fine extending up to ₹40,000, or both. Failure to maintain records, or maintaining them incorrectly, is separately punishable under Section 54(2) with a fine extending up to ₹10,000. Before prosecuting a contravention other than wage underpayment or a record-keeping failure, the Inspector-cum-Facilitator must, under Section 54(3), first issue a written direction affording the employer an opportunity to comply — an opportunity not available for a repeat offence of the same nature within five years.

Reference: https://compezz-my.sharepoint.com/:b:/g/personal/compliance_corplico_com/IQAY-T_tg9EuTI_gmUyYo0f_AQY5O7I8nO42OmhZGNfGleU?e=QwraAT

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