The Lieutenant Governor of the Andaman and Nicobar Islands has approved a revision of minimum wage rates across six scheduled employments, including government departments, offices and industrial establishments, with effect from January 1, 2026. The revision has been carried out by factoring in the Variable Dearness Allowance (VDA), linked to the average rise in the All India Consumer Price Index, as mandated under the Minimum Wages Act, 1948.
According to the revised structure, unskilled workers will be entitled to a minimum daily wage of ₹652, while semi-skilled and unskilled supervisory staff will receive ₹733 per day. The minimum wage for skilled and clerical categories has been fixed at ₹856 per day, and highly skilled workers will be entitled to ₹939 per day.
The revised rates apply to six schedules of employment notified under the Act, in addition to government departments, offices and industrial establishments operating in the Union Territory. Officials said the revision is aimed at ensuring that wage levels keep pace with inflation and rising living costs, while providing statutory wage protection to workers across different skill categories.
The wage revision follows the statutory requirement to periodically update minimum wages by accounting for changes in the cost of living through the VDA mechanism. The administration has reiterated that the revised rates are binding on all covered establishments operating within the Andaman and Nicobar Islands.
Employers have been directed to ensure strict compliance with the new wage structure from the effective date. The administration has warned that failure to implement the revised minimum wages will invite punitive action under the provisions of the Minimum Wages Act, 1948, along with the rules framed under it. Further action may also be initiated under the Code on Wages, 2019, once its provisions come into force in the Union Territory.
An official copy of the order detailing the revised minimum wage rates has been made available for public access. Employers, workers and other stakeholders can download the notification from the official website of the Labour Department at https://labour.and.nic.in/.
The revised wage structure is expected to impact a wide section of the workforce in the islands, particularly those engaged in unskilled, semi-skilled and skilled occupations across public and private sectors. Labour authorities have indicated that enforcement mechanisms will be strengthened to ensure adherence to the revised rates once they come into effect from January 2026.
