The Government of Bihar has officially revised the minimum wages for all scheduled employments with effect from 1st October 2025. This revision has been notified under Section 3 & 5 of the Minimum Wages Act, 1948, and is based on the Special Allowance (VDA) linked to the Consumer Price Index (CPI).

This change impacts employers across manufacturing, factories, shops, commercial establishments, and other scheduled employments in Bihar. Employers must update their payroll systems to comply with the revised wage rates to avoid penalties and ensure statutory compliance.

📊 Bihar Minimum Wages Rates (w.e.f. 01.10.2025)

*Calculated on 26 working days/month (as generally considered for minimum wage calculations).

✅ Key Highlights

• Effective Date: 1st October 2025
• Applicable To: All scheduled employments in Bihar
• Basis of Revision: Variable Dearness Allowance (VDA) linked to CPI
• Impact: Increase in daily wages ranging from ₹4 to ₹6 per day
• Compliance: Employers must update wage registers, payroll, and salary slips as per revised rates

🔍 Why This Matters for Employers

• Statutory Compliance: Non-adherence can lead to penalties, interest, and legal action under the Minimum Wages Act, 1948.
• Payroll Adjustments: HR and payroll teams must revise Basic Wages + VDA in salary structures.
• Bonus & Gratuity Impact: Since these benefits are linked to minimum wages, the revised rates will influence annual bonus calculations and gratuity liabilities.
• Contract Labour: Contractors engaged in Bihar must ensure that revised rates are implemented for all workers.

📌 Conclusion

The Bihar Minimum Wages (Oct 2025 – March 2026) revision ensures workers’ wages are aligned with inflationary trends. Employers are advised to implement these changes immediately and maintain compliance.

For businesses operating in Bihar, it is crucial to update wage records, issue revised appointment letters (if necessary), and train payroll teams on the updated structure.

📢 Stay tuned with Prakash Consultancy Services (PCS) for timely updates on Minimum Wages Notifications, Labour Laws, EPF, ESIC, PT, and LWF across India.