Guwahati: The Labour Welfare Department of the Government of Assam has announced a revision of minimum wages for 98 scheduled employments, incorporating the Variable Dearness Allowance (VDA), effective from January 1, 2026. The revision was officially notified on June 17, 2026, impacting a wide array of workers across the state.

This move is set to provide a crucial financial uplift for thousands of workers in various sectors, aiming to mitigate the effects of inflation and ensure a more equitable living standard. The updated wage structure reflects the state’s ongoing commitment to worker welfare and compliance with labour regulations.

What was announced

The Labour Welfare Department, Government of Assam, issued a notification on June 17, 2026, detailing the revised minimum wage rates for 98 specific scheduled employments. These new rates, which include the Variable Dearness Allowance (VDA), are applicable retrospectively from January 1, 2026.

According to details available on compliance portals, the notification, bearing No. E-238621/703, outlines the updated remuneration for various categories of workers. The revision encompasses a broad spectrum of industries, from manufacturing and services to agriculture, ensuring that a significant portion of Assam’s workforce benefits from the adjustment.

Why it matters

The revision of minimum wages and the inclusion of Variable Dearness Allowance are crucial for protecting the purchasing power of workers against rising living costs. Dearness Allowance (DA) is a component of salary provided to employees in India specifically to offset inflation.

For unskilled workers, the total monthly wage has been set at ₹10,543.39, translating to approximately ₹405.52 per day. Semi-skilled or unskilled supervisory personnel will now receive ₹12,257.43 per month (₹471.44 per day). Skilled workers or clerical staff will earn ₹15,322.74 monthly (₹589.34 per day), while highly skilled workers will receive ₹19,709.98 per month (₹758.08 per day). These figures represent the total wages, including the new VDA component.

The increment, while appearing small at approximately 0.10% over previous rates, is primarily driven by the VDA adjustments rather than significant base wage increments. This mechanism ensures that wages are periodically recalibrated to align with economic conditions and the Consumer Price Index (CPI), which tracks the cost of living.

The move is expected to contribute to a better standard of living for workers, reduce exploitation by preventing underpayment, and potentially lead to increased productivity due to a more motivated workforce. Higher wages can also boost consumer spending, thereby stimulating local businesses and contributing to Assam’s economy, according to labour law experts.

Background

The concept of minimum wages in India dates back to the Minimum Wages Act of 1948, which mandates the appropriate government to fix and periodically revise minimum rates of wages for scheduled employments. The Act aims to protect workers in industries where wages are historically low.

In Assam, the Labour & Employment Department, in consultation with its Minimum Wages Advisory Boards and Committees, regularly fixes and revises these rates for various categories of workers. The revisions consider factors such as inflation, cost of living, and industry demands. The state government classifies wages based on skill level (unskilled, semi-skilled, skilled, highly skilled) and, in some cases, industry type.

Variable Dearness Allowance (VDA) is a critical component of the minimum wage structure. It is designed to compensate employees for the erosion of their real income due to inflation. VDA is typically revised every six months based on changes in the Consumer Price Index for Industrial Workers (CPI-IW). This mechanism ensures that the minimum wages remain relevant and provide adequate purchasing power.

Historically, Assam has seen several wage revisions. For instance, in 2026, the state government also approved an interim hike of ₹30 in the minimum wages of tea plantation workers, effective April 1, 2026, raising daily wages to ₹280 in the Brahmaputra Valley and ₹258 in the Barak Valley. This separate revision for tea workers, a significant workforce in Assam, highlights the state’s ongoing efforts to address wage concerns across different sectors.

While the Minimum Wages Act of 1948 continues to govern these revisions, the Code on Wages 2019, though implemented, standardises the definition of “wages” and stipulates that basic pay plus DA must constitute at least 50% of the total remuneration.

Key details

The latest revision, effective January 1, 2026, includes an updated Variable Dearness Allowance (VDA) component. The VDA rate for the period of January-June 2026 was determined to be 57.92%, based on the CPI-IW (Base 2001) all-India average for July-December 2025 being 424.80.

The revised monthly and daily minimum wages for the four primary skill categories in the 98 scheduled employments are as follows:

  • Unskilled Workers: ₹10,543.39 per month (₹405.52 per day)
  • Semi-Skilled / Unskilled Supervisory: ₹12,257.43 per month (₹471.44 per day)
  • Skilled Workers / Clerical Workers: ₹15,322.74 per month (₹589.34 per day)
  • Highly Skilled Workers: ₹19,709.98 per month (₹758.08 per day)

These rates apply uniformly across most of the 98 scheduled employments, as Assam generally does not differentiate wage rates by industry for these categories, instead focusing on skill level. The state also does not typically adopt a zone-based wage distribution system like some other states.

The notification also reiterates provisions for working conditions, including normal working hours (nine hours per day, 48 hours per week), overtime wages at twice the ordinary rate, and a weekly rest day with pay. Additionally, annual leave with wages is mandated at one day for every 20 days of work performed in a calendar year.

What’s next

Employers operating in Assam are mandated to immediately align their payroll structures with these new rates to ensure compliance and avoid statutory legal penalties. The Labour Welfare Department is expected to monitor the implementation of these revised wages across the scheduled employments.

The periodic nature of VDA revisions means that these rates will likely be reviewed again in approximately six months, typically on July 1 for the next half-year period, based on the prevailing Consumer Price Index.

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