Contract Labour Compliance 4 min read • 2026

The October 2026 Wage Revision and Its Effect on Contract Security

What the DGR's revised minimum wages for empanelled ex-servicemen security agencies mean for tendering, billing, and principal employers.

The Labour Bureau issued a VDA order on 30 September 2026, effective 1 October 2026. Following this, the Directorate General Resettlement (DGR) has notified revised minimum wages for watch and ward duties performed by its empanelled ex-servicemen security agencies.

The notification sets the floor for tendering and payment. Quotations below these figures are not permitted at any stage.

Revised Daily Rates by Area

The rates are expressed per eight-hour watch and include all components (basic plus VDA).

Area A
Covers cities such as Delhi, Noida, Gurugram, Mumbai and Bengaluru.

  • Unarmed skilled guard: ₹1,024 per day
  • Armed guard: ₹1,111 per day
  • Supervisor: ₹1,361.92 per day

Area B

  • Unarmed skilled guard: ₹933 per day
  • Armed guard: ₹1,024 per day
  • Supervisor: ₹1,240.89 per day

Area C
Covers locations not included in Areas A and B.

  • Unarmed skilled guard: ₹794 per day
  • Armed guard: ₹933 per day
  • Supervisor: ₹1,056.02 per day

Other Cost Heads in the Notification

Beyond the daily wage, the notification lists the following cost heads:

  • EPF at 12%
  • EDLI at 0.5%
  • Administrative charges at 0.5%
  • ESI, where applicable
  • House rent allowance
  • Annual bonus at 8.33%
  • Uniform and washing allowances
  • Additional field allowance

Reliever Charge, Service Charge and GST

Reliever charge
A reliever charge of one-sixth applies only where a reliever is actually provided on paid rest days.

Service charge
The service charge is 9.5% for contracts sponsored from 1 November 2025 and 10% for earlier contracts.

GST
GST is payable in addition to the above.

Three Provisions That Deserve Attention

1. The higher wage prevails
Where a state minimum wage is higher than the notified rate, the higher wage must be paid.

2. Maximum working days
A guard may work a maximum of 26 days in a 30-day month, with leave relief arranged for the balance.

3. EPFO wage ceiling
The notification records that the EPFO wage ceiling has been raised to ₹25,000.

What Principal Employers Should Do

For principal employers, the practical step is to request a component-wise comparison of the agency's current billing against this notification. The request should include:

  • A breakdown of each cost head in current invoices
  • The applicable area classification and daily rate
  • The service charge rate applied, based on the contract sponsorship date
  • The notification date and effective date

Conclusion

The October 2026 revision sets a binding floor for security services provided through DGR-empanelled agencies. Since quotations below the notified figures are not permitted, both agencies and principal employers need to ensure that billing reflects the revised rates from 1 October 2026.

A component-wise billing review, checked against the notification and any higher state minimum wage, is the simplest way to confirm compliance and avoid disputes or corrections later.