Telangana Government Revises Minimum Wages: Effective from 1st October 2025

Telangana Government Revises Minimum Wages: Effective from 1st October 2025

A Complete Overview for Employers and Employees across Telangana

1. Introduction

The Government of Telangana has officially revised the minimum wages payable to employees across various scheduled employments, effective from 1st October 2025 to 31st March 2026.
This revision has been notified under the provisions of the Minimum Wages Act, 1948, and the A.P. Contract Labour (Regulation and Abolition) Rules, 1971 – Telangana Adoption Order, 2016.

The update ensures that workers receive fair compensation adjusted for changes in the Consumer Price Index (CPI) — reflecting the state’s commitment to protecting the purchasing power of employees amid inflation.


2. CPI Adjustment and Basis of Revision

As per the latest press note issued by the Commissioner of Labour, Telangana:

  • The State Industrial Workers Consumer Price Index (CPI) has increased from 1939 points to 1941 points, showing a rise of 2 points.

  • The Agricultural Workers CPI remains unchanged at 1492 points.

This CPI movement is crucial, as Variable Dearness Allowance (VDA) is calculated based on the difference between the base index of 847 points and the current index of 1941 points, resulting in a net variation of 1094 points.
Accordingly, the revised wages include this updated VDA component.


3. Revised Minimum Wages for Contract Labour

The Government has prescribed the following total monthly wages (Basic + VDA) for contract labour categories across Telangana for the period 1st October 2025 to 31st March 2026:

CategoryTotal Monthly Wage (₹)Definition
Highly Skilled₹23,043Jobs requiring high degree of skill, judgment, and supervisory capacity (e.g., Supervisor, Engineer, Senior Mechanic).
Skilled₹18,472Employees capable of performing tasks independently with training (e.g., Electrician, Fitter, Machinist, Mason).
Semi-Skilled₹15,058Workers with minimum one year of experience performing simple or repetitive tasks.
Unskilled₹12,745Workers performing tasks that require minimal or no prior experience.

These wages are notified under Rule 25(v)(b) of the A.P. Contract Labour (R&A) Rules, 1971 (Telangana Adoption Order, 2016).


4. Revised Minimum Wages for Shops and Establishments

For employees engaged in Shops and Commercial Establishments, the revised wages are applicable as under:

CategoryZone-I (₹)Zone-II (₹)
Manager / Field Officer / Programmer14,61914,200
Accountant / Supervisor / Sales Executive13,78413,582
Salesman / Typist / Clerk / Machine Operator13,16412,948
Peon / Attender / Watchman / Helper12,94812,819

The difference between Zone-I and Zone-II remains minimal, ensuring uniformity across regions and ease of implementation for employers.


5. Legal Obligations for Employers

All employers in Telangana, whether in manufacturing, service, or trading sectors, are legally bound to comply with the revised wage structure.
Key compliance actions include:

  1. Updating payroll and salary structures to reflect revised minimum wages.

  2. Displaying the new wage chart prominently at the workplace as mandated under the Minimum Wages Act.

  3. Maintaining proper registers and records under Form XI and XII.

  4. Ensuring timely and accurate payment of wages to all eligible employees.

Failure to comply with the revised wages can attract penalties, prosecution, and reputational damage under the provisions of the Minimum Wages Act, 1948 and allied labour laws.


6. Importance of Compliance

Regular wage revisions ensure a balance between employee welfare and industrial harmony. For employers, staying compliant with wage notifications is not only a legal necessity but also a good governance practice.
By adhering to updated rates, organizations can:

  • Build trust and transparency with workers.

  • Avoid litigation or labour disputes.

  • Maintain smooth audits and inspections.


7. Effective Period and Next Review

This wage notification is valid from 1st October 2025 to 31st March 2026.
The next revision will depend on the Consumer Price Index movement for the half-year ending June 2026, which will determine future VDA adjustments.


8. Conclusion

The Telangana Government’s 2025 wage revision is a step forward in ensuring fair pay and social protection for workers across the state.
Employers are advised to proactively update their payroll systems and maintain statutory records to stay compliant.

In summary:

  • Effective Date: 1st October 2025

  • Applicable Till: 31st March 2026

  • CPI: 1941 points (Industrial Workers)

  • Contract Labour: ₹12,745 – ₹23,043

  • Shops & Establishments: ₹12,819 – ₹14,619


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