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:

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.

2. 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 “B” Areas

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

Category “C” Areas

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

*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.

3. 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.