Question 1

What is VDA and why does it change twice a year?

Accepted Answer

Variable dearness allowance is the part of the minimum wage that moves with inflation, so real earnings do not fall as prices rise. Madhya Pradesh recalculates it against the All India Consumer Price Index every six months and notifies revised rates from 1 April and 1 October.

For this period the index rose by 11 points, from an average of 414 to 425, which is what produced the current VDA of ₹2,850 a month.

Question 2

Why is the daily rate rounded in a separate column?

Accepted Answer

The Minimum Wages Advisory Board resolved on 20 June 2006 that daily and monthly wages be rounded to whole rupees. A Finance Department circular of 20 September 2006 sets the rule: 50 paise or more rounds up to the next rupee, anything below 50 paise is dropped.

So an unskilled worker's arithmetic daily rate of ₹477.89 becomes ₹478 payable, while a semi-skilled worker's ₹516.20 stays at ₹516. That rounded figure is the one to run payroll on.

Question 3

Is the monthly wage divided by 26 days or 30 days?

Accepted Answer

These rates use 26 days, so an unskilled worker's ₹12,425 a month works out to ₹477.89 and is paid at ₹478 a day.

Not every schedule in Madhya Pradesh uses 26 days. Agriculture and government daily-wage staff are calculated on 30 days, which gives a lower daily figure on the same monthly wage. Dividing by the wrong number is one of the most common payroll errors in the state.

Question 4

Which schedule applies to my business?

Accepted Answer

Most shops, establishments and factories fall inside the 67 general scheduled employments covered here. The notification lists them by number, covering employments 1 to 36, 39 to 55, 57 to 66, 68 and 70 to 72.

Check that numbered list if you are unsure, since the schedule number rather than your industry description is what decides it.

Question 5

Do these rates include PF, ESI and bonus?

Accepted Answer

No. Basic and VDA together form the minimum wage. Provident fund, employees' state insurance, bonus and gratuity are calculated on top of it and paid separately.

A common mistake is treating the ₹12,425 total as cost to company. It is the floor for wages alone, and your statutory contributions sit above it.

Question 6

Are contractor and agency workers covered?

Accepted Answer

Yes. Minimum wages apply to workers engaged through a contractor or service provider on the same basis as direct employees, in the same skill category.

Ask contractors for wage registers rather than assurances, since a clause in the vendor contract does not by itself discharge the obligation.

Legal review before publishing. Principal-employer liability is not spelled out in this notification. The statement above is deliberately narrower than the Haryana page, which cites its gazette directly. Have your legal team confirm the wording, or drop this FAQ.

Question 7

Do the new Labour Codes change this?

Accepted Answer

The four Labour Codes came into force on 21 November 2025 and the Code on Wages subsumes the Minimum Wages Act, 1948. Until Madhya Pradesh notifies its own rules under the Code, the existing state rules continue by way of the repeal and savings provisions, so these rates stand.

What has changed is the definition of wages for calculating provident fund, gratuity and bonus, which now uses a 50 per cent floor. That affects your salary structure even where the minimum wage figure itself is unchanged.

Class of worker	Basic / month	Basic / day	VDA / month	VDA / day	Total / month	★ Payable / day
Unskilled	9,575	368.27	2,850	109.62	12,425	478
Semi-skilled	10,571	406.58	2,850	109.62	13,421	516
Skilled	12,294	472.85	2,850	109.62	15,144	582
Highly skilled	13,919	535.35	2,850	109.62	16,769	645

Minimum Wages in Madhya Pradesh 2026

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Shops & Establishments: Wage Rates by Class of Worker

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Frequently Asked Questions

Every state revises wages on its own calendar. Payroll has to keep up with all of them.