Labour and Employment / Odisha Hikes Minimum Wages by Rs 6 Per Day Through Revised VDA

Bhubaneswar, Oct 8: The Odisha government increased the minimum wages of workers across all skill categories by Rs 6 per day with effect from October 1, 2026, following a revision in the Variable Dearness Allowance (VDA), officials said on Thursday.

The move is aimed at offsetting the impact of inflation and ensuring better wage protection for workers in the state.

#Bhubaneswar: Odisha has increased the Variable Dearness Allowance (VDA) for unskilled, semi-skilled, skilled and highly skilled workers by ₹6 per day with effect from October 1, 2026. The revised minimum daily wages are ₹478 for unskilled, ₹528 for semi-skilled, ₹578 for skilled and ₹628 for highly skilled workers. #Odisha #MinimumWages #Labour #VDA #Workers

— Argus News (@ArgusNews_in) October 8, 2026

VDA Revision Announced

In a notification issued by Odisha Labour Commissioner, the state government said the VDA has been enhanced by Rs 6 per day for unskilled, semi-skilled, skilled and highly skilled workers. The revision follows an increase in the Consumer Price Index (CPI) for industrial workers from an average of 147.50 to 149.80 during the last half-year.

As per the notification, the revised minimum wages including VDA will be applicable from October 1, 2026.

Revised Wage Rates

Under the revised structure:

Unskilled workers: Rs 478 per day (up from Rs 472)

Semi-skilled workers: Rs 528 per day (up from Rs 522)

Skilled workers: Rs 578 per day (up from Rs 572)

Highly skilled workers: Rs 628 per day (up from Rs 622)

The increase has been effected through the VDA mechanism, which is revised twice a year based on changes in the CPI for industrial workers.
Also Read: Odisha CM Reviews Health, Nutrition and Education Under PRAYASS Initiative

Inflation-Linked Adjustment

The VDA is calculated at Rs 2.60 for every point increase in the Consumer Price Index (base year 2016=100). The latest adjustment reflects the rise in inflation during the previous six months and seeks to maintain the real income of workers amid rising living costs.

The notification has been circulated to labour officials, district administrations and various government departments for implementation and necessary action, the officials said.