Jharkhand minimum wages: VDA of 11.65% on basic from 1 October 2026
TaxByKK · Compliance News · taxbykk.com15 Oct 2026
In short
Jharkhand has declared variable dearness allowance (VDA) on minimum wages for all employments, payable from 1 October 2026. The average All-India Consumer Price Index for January to June 2026 works out to 431 on the old base, 45 points above the 386 on which the basic rates were fixed, an increase of 11.65%.
- Authority
- Government of Jharkhand, Labour Commissioner
- Notification
- No. 02/MW-207/2010 (Part 3), dated 15 October 2026, Ranchi
- Type
- Notification
- Effective from
- 1 October 2026
- Law
- Code on Wages, 2019, section 6
- Basis
- Average CPI January–June 2026: 149.8 (2016=100) × 2.88 = 431 (2001=100), against 386
What changed
| Item | Before | Now |
|---|---|---|
| VDA on Jharkhand minimum wages | Basic rates fixed at index 386 (effective 11 March 2024) | Index 431: VDA of 11.65% added, payable from 1 October 2026 |
The basic rates were fixed on the January–June 2023 average index of 386 and have applied since 11 March 2024. VDA moves with the index, but minimum wages never fall below the fixed basic rates even if the index drops. Areas: Category A covers the municipal corporations of Ranchi, Chas, Dhanbad, Deoghar, Hazaribagh, Mango and Adityapur, the Jamshedpur notified area and Jugsalai municipal council; Category B covers all other civic body and municipal areas; Category C covers the rest of the state.
Who it applies to
- Employers in Jharkhand, in every scheduled employment
- Contractors supplying workers in Jharkhand
- Payroll teams and CAs handling Jharkhand payroll
What to do
- Map each worker to the right area category (A, B or C) and skill level.
- Add VDA to the basic minimum wage from the October 2026 wage period, using the rates in the notification's schedule.
- Pay arrears if October wages were paid without VDA.
- Recheck PF, ESI and bonus calculations that depend on wages.
Reference
Government of Jharkhand, Labour Commissioner Office, notification No. 02/MW-207/2010 (Part 3), Ranchi, 15 October 2026, under section 6 of the Code on Wages, 2019. The rate schedule in the original is partly in Hindi.
Read the official PDF: Jharkhand notificationWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
From when is the Jharkhand VDA payable?
From 1 October 2026, on the average index for January to June 2026.
By how much has VDA increased in Jharkhand?
The index rose 45 points, from 386 to 431, an increase of 11.65% over the basic rates.
Which areas are Category A in Jharkhand?
The municipal corporations of Ranchi, Chas, Dhanbad, Deoghar, Hazaribagh, Mango and Adityapur, the Jamshedpur notified area and Jugsalai municipal council.