Background
The Government of Jharkhand, under Section 6 read with Section 69(2) of the Code on Wages, 2019, issued Notification No. 2/MW-2071/2010 (Part-3), dated 15 October 2026, revising minimum wages with effect from 1 October 2026. The notification declares Variable Dearness Allowance (VDA) based on the average All India Consumer Price Index (Base 2016 = 100) for January to June 2026. Schedule I (Annexure I) specifies the consolidated minimum wage rates, comprising basic wages and VDA, classified by district/area categories A, B and C and skill levels. The notification was issued by the Labour Commissioner’s Office, Department of Labour, Employment, Training and Skill Development, Jharkhand.
Applicability
These rates apply to every employer in the State of Jharkhand in respect of the different categories of employees (unskilled, semi-skilled, skilled and highly skilled) engaged in all employments and all establishments, across all three area categories — Category A (the specified municipal corporations, municipal council and notified area, including Ranchi, Dhanbad, Jamshedpur and Adityapur), Category B (all other civic body, municipal and notified areas) and Category C (all remaining areas of the State). The revised basic minimum rates fixed with effect from March 11, 2024, on which the VDA is effective, likewise apply to all establishments.
Compliance Requirements
The VDA has been computed on the average All India CPI (Base 2016 = 100) for the first half of 2026, converted to the old series (Base 2001 = 100) and compared with the index of 386 points on which the basic rates effective from March 11, 2024 were fixed. The resulting increase of 45 points (11.65%) has been applied to the basic rates, with the VDA rounded off on the consent of the Jharkhand Minimum Wages Advisory Board, and becomes payable from October 1, 2026.
Particulars | All India CPI (2016 = 100) |
January 2026 | 148.6 |
February 2026 | 148.5 |
March 2026 | 149.1 |
April 2026 | 149.9 |
May 2026 | 150.8 |
June 2026 | 151.9 |
Total | 898.8 |
Six-month average (898.8 ÷ 6) | 149.8 |
Conversion to old series (149.8 × 2.88) | 431.42, i.e. 431 |
Base index for revised basic rates (Jan–Jun 2023) | 386 |
Increase in index (431 − 386) | 45 points |
Percentage increase (45 × 100 ÷ 386) | 11.65% |
The area classification, adopted on the consensus reached at the meeting of the Jharkhand Minimum Wages Advisory Board held on October 11, 2023, determines which rate schedule applies to an establishment.
Category | Covered Areas |
A | Ranchi Municipal Corporation, Chas Municipal Corporation, Dhanbad Municipal Corporation, Deoghar Municipal Corporation, Hazaribagh Municipal Corporation, Jamshedpur Notified Area, Mango Municipal Corporation, Jugsalai Municipal Council and Adityapur Municipal Corporation areas |
B | All civic body / municipal areas and notified areas other than those in Category A (municipal corporations, municipal councils and nagar panchayats) |
C | All other areas of the State |
For employees in Category A areas, the minimum wage payable from October 1, 2026, inclusive of VDA:
Category of Worker | Basic Daily (₹) (w.e.f. 11.03.2024) | VDA Daily (₹) (w.e.f. 01.10.2026) | Total Daily (₹) | Basic Monthly (₹) (w.e.f. 11.03.2024) | VDA Monthly (₹) (w.e.f. 01.10.2026) | Total Monthly (₹) |
Unskilled | 468 | 55 | 523 | 12,168 | 1,418 | 13,586 |
Semi-skilled | 491 | 57 | 548 | 12,766 | 1,487 | 14,253 |
Skilled | 647 | 75 | 722 | 16,822 | 1,960 | 18,782 |
Highly Skilled | 746 | 87 | 833 | 19,396 | 2,260 | 21,656 |
For employees in Category B areas, the minimum wage payable from October 1, 2026, inclusive of VDA:
Category of Worker | Basic Daily (₹) (w.e.f. 11.03.2024) | VDA Daily (₹) (w.e.f. 01.10.2026) | Total Daily (₹) | Basic Monthly (₹) (w.e.f. 11.03.2024) | VDA Monthly (₹) (w.e.f. 01.10.2026) | Total Monthly (₹) |
Unskilled | 446 | 52 | 498 | 11,596 | 1,351 | 12,947 |
Semi-skilled | 468 | 55 | 523 | 12,168 | 1,418 | 13,586 |
Skilled | 617 | 72 | 689 | 16,042 | 1,869 | 17,911 |
Highly Skilled | 712 | 83 | 795 | 18,512 | 2,157 | 20,669 |
For employees in Category C areas, the minimum wage payable from October 1, 2026, inclusive of VDA:
Category of Worker | Basic Daily (₹) (w.e.f. 11.03.2024) | VDA Daily (₹) (w.e.f. 01.10.2026) | Total Daily (₹) | Basic Monthly (₹) (w.e.f. 11.03.2024) | VDA Monthly (₹) (w.e.f. 01.10.2026) | Total Monthly (₹) |
Unskilled | 425 | 50 | 475 | 11,050 | 1,287 | 12,337 |
Semi-skilled | 446 | 52 | 498 | 11,596 | 1,351 | 12,947 |
Skilled | 588 | 69 | 657 | 15,288 | 1,781 | 17,069 |
Highly Skilled | 678 | 79 | 757 | 17,628 | 2,054 | 19,682 |
The following conditions apply uniformly across all area categories:
Penalty and Consequences
Under Section 54(1)(a) of the Code on Wages, 2019, an employer who pays any employee less than the amount due under the Code is punishable with a fine which may extend to ₹50,000; under Section 54(1)(b), where the employer, having been so convicted, is again found guilty of a similar offence within five years, the punishment is imprisonment for a term which may extend to three months, or a fine which may extend to ₹1,00,000, or both.
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