Several wage-related changes have taken effect within a few weeks of each other. Taken together, they affect minimum wage calculations, contract labour billing, and statutory contributions.
The following checklist may help HR, payroll, and finance teams ensure that each change has been addressed for the half-year from October 2026 to March 2027.
1. Confirm the VDA Applicable to Each Establishment
Units in Uttarakhand should verify whether they fall under the ₹634 notification for scheduled employments or the separate notification for engineering establishments.
- Identify the category and size of each establishment
- Match each unit to the correct VDA notification
- Apply the correct figure with effect from 1 October 2026
2. Review Contract Labour Billing
Where security services are engaged through DGR-empanelled agencies, invoices should be compared with the notified rates. Check the following components:
- Notified rates for the relevant area
- Applicable service charge (9.5% or 10%)
- Reliever component
- Bonus component
3. Update the EPF Ceiling
The mandatory EPF coverage ceiling has increased from ₹15,000 to ₹25,000 per month with effect from 17 September 2026 under S.O. 5109(E).
For September 2026, the month is split:
- 1 to 16 September: earlier ceiling of ₹15,000
- 17 September onwards: revised ceiling of ₹25,000
Payroll configurations and vendor billing should both reflect this change.
4. Apply the Higher-Wage Rule
Where a state minimum wage exceeds the central rate, the state rate applies. The central notification should not be treated as the final word.
- Compare central and state rates for each location
- Apply whichever rate is higher
5. Maintain Documentation
For every rate change, record the following so that the basis for any figure can be shown readily during an audit or inspection:
- Notification number
- Date of the notification
- Effective date of the change
Conclusion
None of these steps is complex in isolation, but the timing makes them easy to overlook. With multiple changes arriving within a few weeks, payroll and billing errors can build up quietly across the half-year.
A short review at the start of the half-year can prevent corrections later and keep payroll, billing, and statutory records aligned with current notifications.