Background
Under Sections 3 and 5 of the Minimum Wages Act, 1948, the Government of Odisha revised minimum wage rates for unskilled, semi-skilled, skilled and highly skilled workers in scheduled employments through Notification No. 5308 dated 18 July 2024, published in the Odisha Gazette (Extraordinary) No. 1367.
The Labour Commissioner, Odisha, issued Notification No. 8393/LC dated 8 October 2026, revising the Variable Dearness Allowance (VDA) for the half-year commencing 1 October 2026. The revision is based on an increase in the average All-India Consumer Price Index for Industrial Workers (base 2016=100) from 147.50 to 149.80, representing a rise of 2.30 points. At ₹2.60 per point, this results in a VDA increase of ₹5.98. The notification was forwarded for publication in the Odisha Gazette vide Memo No. 8400 dated 8 October 2026.
The revised VDA applies to the relevant categories of workers in scheduled employments, in addition to the prescribed basic minimum wage rates.
Applicability
The revised rates apply to all employers in the State of Odisha engaging unskilled, semi-skilled, skilled or highly skilled employees in any of the scheduled employments covered by Notification No. 5308 dated July 18, 2024 (89 employments, subsequently extended to sericulture activities and Swachha Karmis vide Notification Nos. 6471 and 6477 dated August 20, 2024), including shops and commercial establishments, and extend equally to employees engaged through contractors in those employments.
Compliance Requirements
With effect from October 1, 2026, the VDA payable to all four categories of employees is increased by ₹6 per day, over and above the VDA already declared. Employers must pay at least the following daily minimum rates of wages (inclusive of VDA) from that date:
Category of Employees | Daily Minimum Wage prior to 01.10.2026 (with VDA) | Increase in VDA per day w.e.f. 01.10.2026 | Daily Minimum Wage with VDA w.e.f. 01.10.2026 |
Unskilled | ₹472 | ₹6 | ₹478 |
Semi-skilled | ₹522 | ₹6 | ₹528 |
Skilled | ₹572 | ₹6 | ₹578 |
Highly Skilled | ₹622 | ₹6 | ₹628 |
The ₹6 increase reflects the 2.30-point rise in CPI-IW multiplied by the ₹2.60-per-point rate (₹5.98, rounded to ₹6). The pre-revision rates of ₹472–₹622 correspond to those notified effective April 1, 2026 (Notification No. 3920), which comprised a basic rate of ₹462–₹612 plus VDA of ₹10 per day; on that basis, cumulative VDA from October 1, 2026 would stand at ₹16 per day.
The following conditions of the parent notification continue to govern the revised rates:
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.
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