
Background
Under the Minimum Wages Act, 1948 (Central Act No. 11 of 1948), the minimum wages payable to workers in scheduled employments in Madhya Pradesh comprise a basic rate and a Variable Dearness Allowance (VDA) linked to the consumer price index. The Labour Commissioner, Madhya Pradesh, issued notifications dated 30 September 2026, revising the Variable Dearness Allowance (VDA) for workers employed in scheduled employments, effective 1 October 2026. The revision is based on the All-India Consumer Price Index for Industrial Workers (CPI-IW), with the average index increasing from 425 to 431 for the relevant half-year. The basic minimum wage rates remain linked to the earlier revision notified on 4 March 2024, unless separately amended.
Applicability
These rates apply to every employer in the State of Madhya Pradesh engaging workers in any of the 67 scheduled employments listed in Part I of the Schedule (serial numbers 1–36, 39–55, 57–66, 68 and 70–72, including, among others, cotton ginning and pressing, forestry, road and building construction, public motor transport, engineering, chemical and pharmaceutical units, rice, flour and dal mills, food products, stone breaking and mines exempted under Section 3 of the Mines Act, shops and commercial establishments, residential hotels, restaurants and eating houses, printing presses, plastics, powerlooms, private hospitals and pathology laboratories, private educational institutions including coaching centres, bakeries, cold storages, automobile workshops, security and detective services, courier services, data processing, sanitation and information technology); employers in textile and made-ups, apparel and footwear manufacturing; employers engaging workers in agriculture under Part II of the Schedule; slate pencil manufactories; tobacco manufacturing units including bidi-making establishments; agarbatti manufacturers; and departments of the Government of Madhya Pradesh engaging daily-wage workers and employees. Rates are prescribed for unskilled, semi-skilled, skilled and highly skilled workers as defined in the notification, and the occupational classification annexed to it is illustrative — a worker in an unlisted occupation is entitled to the rate for workers doing work of a similar nature.
Compliance Requirements
For workers employed in the textile and made-ups industry (Sl. No. 36(A)), apparel manufacturing from woven, knitted and technical textile fabric (Sl. No. 59(A)) and footwear manufacturing (Sl. No. 73), the VDA has been raised by ₹150 per month. For semi-skilled, skilled and highly skilled workers the VDA is computed on 190 points above the CPI base of 241 (₹4,750 per month), and for unskilled workers on 178 points above a base of 253 (₹4,450 per month). Daily rates are derived by dividing the monthly wage by 26.
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) | Previous Daily Rate, Apr–Sep 2026 (₹) |
Unskilled | 6,500 | 4,450 | 10,950 | 421 | 415 |
Semi-skilled | 7,057 | 4,750 | 11,807 | 454 | 448 |
Skilled | 8,435 | 4,750 | 13,185 | 507 | 501 |
Highly Skilled | 9,735 | 4,750 | 14,485 | 557 | 551 |
For workers in the 67 scheduled employments under Part I of the Schedule, the VDA is computed on the 120-point rise in the CPI average from 311 to 431 at ₹25 per point, giving ₹3,000 per month (₹115.38 per day), an increase of ₹150 per month over the April–September 2026 VDA of ₹2,850. Daily rates are derived by dividing the monthly wage by 26.
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) | Previous Daily Rate, Apr–Sep 2026 (₹) |
Unskilled | 9,575 | 3,000 | 12,575 | 484 | 478 |
Semi-skilled | 10,571 | 3,000 | 13,571 | 522 | 516 |
Skilled | 12,294 | 3,000 | 15,294 | 588 | 582 |
Highly Skilled | 13,919 | 3,000 | 16,919 | 651 | 645 |
For workers employed in slate pencil manufacturing, the notification prescribes occupation-wise rates, each carrying the same VDA of ₹3,000 per month:
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) |
Mazdoor (labourer) | 9,575 | 3,000 | 12,575 | 484 |
Packer, Patti Packer, Sweeper | 10,131 | 3,000 | 13,131 | 505 |
Munim, Accountant, Clerk | 12,294 | 3,000 | 15,294 | 588 |
Rollers, Mistri, Painters | 13,653 | 3,000 | 16,653 | 641 |
Highly Skilled | 13,919 | 3,000 | 16,919 | 651 |
Cutters | 14,444 | 3,000 | 17,444 | 671 |
For employees of printing presses, the notification prescribes grade-wise rates within the clerical, skilled and semi-skilled cadres, each carrying a VDA of ₹3,000 per month:
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) |
Clerical – Unskilled | 9,575 | 3,000 | 12,575 | 484 |
Clerical – Grade I | 12,294 | 3,000 | 15,294 | 588 |
Clerical – Grade II | 10,571 | 3,000 | 13,571 | 522 |
Clerical – Highly Skilled | 13,919 | 3,000 | 16,919 | 651 |
Skilled – Grade I | 13,856 | 3,000 | 16,856 | 648 |
Skilled – Grade II | 13,473 | 3,000 | 16,473 | 634 |
Skilled – Grade III | 12,294 | 3,000 | 15,294 | 588 |
Semi-skilled – Grade I | 12,294 | 3,000 | 15,294 | 588 |
Semi-skilled – Grade II | 10,571 | 3,000 | 13,571 | 522 |
For daily-wage workers and employees engaged in the various departments of the Government of Madhya Pradesh, the monthly rates are the same as for the 67 scheduled employments, but the daily rate is derived by dividing the monthly wage by 30 (VDA of ₹100 per day) rather than 26.
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) | Previous Daily Rate, Apr–Sep 2026 (₹) |
Unskilled | 9,575 | 3,000 | 12,575 | 419 | 414 |
Semi-skilled | 10,571 | 3,000 | 13,571 | 452 | 447 |
Skilled | 12,294 | 3,000 | 15,294 | 510 | 505 |
Highly Skilled | 13,919 | 3,000 | 16,919 | 564 | 559 |
For unskilled agricultural workers under Part II of the Schedule, the VDA is linked to the All-India Consumer Price Index for Agricultural Labourers (1986-87=100). The January–June 2026 average of 1,335 is 13 points above the previous half-year average of 1,322; at ₹6 per point the VDA rises by ₹78 to ₹2,430 per month (405 points above the base of 930). The same rate applies to men and women, and the daily rate is derived by dividing the monthly wage by 30.
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) | Previous Daily Rate, Apr–Sep 2026 (₹) |
Unskilled Agricultural Worker | 7,660 | 2,430 | 10,090 | 336 | 334 |
Unlike the half-yearly revision for other employments, the VDA for bidi rollers is revised annually from April 1, based on the All-India CPI (1960=100) average for the preceding calendar year. The 2025 average of 9,568 is 2,838 points above the base of 6,730, which at one paisa per point gives a VDA of ₹28.38 per 1,000 bidis for the period April 1, 2026 to March 31, 2027. Where a worker’s earnings in a week fall below ₹757.06 (the wage for 5,600 bidis), the employer must pay at least ₹757.06 for that week, provided the shortfall is not attributable to the worker or to circumstances beyond the employer’s control such as fire, calamity or epidemic.
Component (per 1,000 bidis) | Rate (₹) |
Basic wage | 106.81 |
Variable Dearness Allowance | 28.38 |
Minimum wage (basic + VDA) | 135.19 |
Leave with wages in cash (5%) | 6.76 |
Bonus (8.33%) | 11.82 |
Employer’s PF contribution (10%) | 14.19 |
Total cost to employer | 167.96 |
Less: Employee’s PF contribution (10%) | 14.19 |
Net payable to bidi roller | 139.58 |
The notification also prescribes separate piece rates for labelling and packing work (applying labels and wrappers to bidi bundles), each with a per-unit VDA; these should be read from the notification’s schedule for specific work assignments.
For employees of tobacco manufacturing units (including bidi-making) who are paid on a daily or monthly basis, the VDA follows the half-yearly CPI (2001=100) revision and stands at ₹3,000 per month (₹115.38 per day) for the period October 1, 2026 to March 31, 2027
Category of Worker | Basic Wage (₹/month) | VDA (₹/month) | Total Wage (₹/month) | Daily Rate (₹, rounded) |
Tobacco/tendu leaf issuers, bidi receivers and sorters, tobacco mixers and sievers, bhatti wala, cook, light vehicle driver, typist, clerk, billman | 8,144 | 3,000 | 11,144 | 429 |
Truck loaders/unloaders, bidi packet fillers, peon, chowkidar | 7,981 | 3,000 | 10,981 | 422 |
Heavy vehicle driver, accountant, munim, cashier, store keeper, godown keeper, head clerk | 8,144 | 3,000 | 11,144 | 429 |
For agarbatti rollers, the VDA is computed at 25 paise per point on the 120-point rise over the CPI base of 311, giving ₹30.00 per 1,000 agarbattis rolled. Separate item-wise piece rates are prescribed for counting, wrapping, packeting and pungli-making work by pack weight and count, and these should be read from the notification’s schedule. Monthly-rated employees of agarbatti units — box makers, masala fillers, peons and chowkidars (₹12,575), typists, clerks, box fillers and masala weighers (₹13,571), and accountants, cashiers, godown keepers, mistris and drivers (₹15,294) — are paid at the corresponding unskilled, semi-skilled and skilled rates for the 67 scheduled employments.
Category of Worker | Basic Rate (₹) | VDA (₹) | Total Minimum Wage (₹) |
Agarbatti roller – ordinary (per 1,000 rolled) | 44.25 | 30.00 | 74.25 |
Agarbatti roller – scented (per 1,000 rolled) | 45.00 | 30.00 | 75.00 |
The following conditions apply across the notifications:
Penalty and Consequences
Under Section 22 of the Minimum Wages Act, 1948, an employer who pays an employee less than the minimum rate of wages fixed for that employee’s class of work, or who contravenes any rule or order made under Section 13 of the Act, is punishable with imprisonment for a term extending up to six months, or with fine extending up to ₹500, or with both.
Under Section 22A of the Act, any employer who contravenes any other provision of the Act or of any rule or order made thereunder, for which no specific penalty is otherwise provided, is punishable with a fine extending up to ₹500.
Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.