If you run payroll in Uttar Pradesh, you probably know the feeling. The month is already three weeks old, salaries are being processed, and a new Labour Department notification lands in your inbox with a date that sits behind you.
That is exactly where many employers are right now.
On 21 October 2026, the UP Labour Department issued the revised Variable Dearness Allowance (VDA) for the period 1 October 2026 to 31 March 2027. The rates apply from 1 October, so any October wages paid at the old rate will need a correction.
Where the Number Comes From
Minimum wages in UP are really two things added together: a base wage fixed in April, and a VDA that gets revised every six months.
The VDA follows the All India Consumer Price Index (base 2001=100). The baseline is 400 points. For January to June 2026, the average index was 431. That gap of 31 points is converted into a percentage of the base wage:
(431 − 400) ÷ 400 × base wage = VDA
For an unskilled worker in Ghaziabad or Gautam Buddh Nagar, that is 31/400 × ₹12,885, which comes to ₹998.59. Add it to the base and the monthly wage becomes ₹13,883.59, or ₹533.98 a day.
Once you see the formula, the whole table stops looking mysterious. Every figure in it is the same calculation applied to a different base.
What This Means in Ghaziabad and Noida
Both districts fall in Category I, which carries the highest rates in the state.
| Skill Level | Monthly Wage | Daily Wage |
|---|---|---|
| Unskilled | ₹13,883.59 | ₹533.98 |
| Semi-skilled | ₹15,271.41 | ₹587.36 |
| Skilled | ₹17,106.39 | ₹657.94 |
Municipal Corporation districts are in Category II, and everywhere else is Category III. Unskilled workers in Category II are at ₹13,189.68 a month, and in Category III at ₹12,530.25. If you have workers across several districts, check each location separately. One rate for the whole company is a common and costly shortcut.
Three Places Where Mistakes Usually Happen
The effective date. The wage applies from 1 October, not from the day you read the notification. If October salaries went out at the old rate, the difference is owed.
Contractors. Where work is done through a contractor, the notification treats those workers as directly employed by the principal employer when it comes to these rates. Many companies assume the contractor carries the responsibility. The notification does not support that assumption, so it is worth reviewing what your contractors are actually paying and billing.
Part-timers. Anyone working under 6 hours a day, or 36 hours a week, counts as part-time. Their hourly rate cannot fall below one-eighth of the applicable daily wage.
One more point helps: if you already pay above the notified rate, that wage stays. The revision sets a floor and cannot be used to reduce anyone's pay.
A Simple Routine That Saves the Scramble
The VDA will be revised again, with the next cycle due in April 2027 based on the July to December 2026 index. Rather than treat each notification as a surprise, put two dates in your compliance calendar, one in early April and one in early October, and ask three questions on each:
- Has a new notification been issued?
- Does it change our payroll or our contractor billing?
- Do we owe anyone arrears?
It takes about an hour. Skipping it can mean weeks of reconciliation later.
The Bottom Line
Minimum wage compliance is rarely about a difficult calculation. It is about noticing on time, applying the right rate to the right person from the right date, and keeping the records to show it.
If your October payroll has already run, today is a good day to check it.