A garment manufacturing unit in Noida had been running its April 2026 payroll on the October 2025 rates when its compliance team noticed something during a routine internal audit. The revised Uttar Pradesh minimum wages, notified by the UP Labour Department on 18 February 2026, were effective from 1 April 2026. The unskilled workers at the facility were receiving Rs. 11,038 per month under the old rate. The new rate stood at Rs. 11,314. Across 120 unskilled workers, the monthly shortfall added up to Rs. 33,120. Over three months, that was nearly one lakh rupees in arrears, with interest accruing from the first day of violation. The company corrected immediately, but the audit trail already showed three months of non-compliance.

This story is not unusual. Uttar Pradesh revises Uttar Pradesh minimum wages twice a year — April and October — covering 74 scheduled employments ranging from shops and commercial establishments to brick kilns, plastic factories, textile units, IT services, and healthcare. A separate notification applies to engineering factories employing 50 or more workers, with its own VDA structure and base calculation. This guide covers both notifications, the full wage tables, the compliance framework, and what Noida and Lucknow businesses must do right now.

Need help applying the revised Uttar Pradesh minimum wages in your April 2026 payroll? Futurex audits your current wage structure, identifies shortfalls, calculates arrears, and updates your payroll system for both the 74 scheduled employment notification and the engineering factory notification. First consultation free.

Two Separate Notifications: What Changed in 2026 for UP Employers

Uttar Pradesh issues minimum wage revisions under two distinct frameworks. The first covers all 74 scheduled employments under the Minimum Wages Act, 1948, and applies across the state without any zone differentiation. The second applies specifically to engineering factories employing 50 or more workers, where the VDA is calculated on the All India Consumer Price Index (AICPI) and revised separately from the general schedule. Both frameworks changed in early 2026, and employers must apply the correct notification for their sector.

📌 Uttar Pradesh Minimum Wages 2026 — Key Facts

Authority: Labour Department, Government of Uttar Pradesh
Notification Date (74 Scheduled Employments): 18 February 2026
Effective Period (74 Scheduled Employments): 1 April 2026 to 30 September 2026
Engineering Factory Notification: Issued 18 February 2026, effective 1 February 2026
Engineering Factory Issuing Authority: Shram Aayukt (Labour Commissioner), Uttar Pradesh — Markandeya Sahi
Sectors Covered: 74 scheduled employments including shops, factories, IT, healthcare, textiles, brick kilns and more
Zone Structure: No zone differentiation — single rate applies across all UP
Skill Levels: Unskilled, Semi-Skilled, Skilled
Revision Cycle: Semi-annual (April and October)

Uttar Pradesh Minimum Wages April 2026: 74 Scheduled Employments

The following table shows the complete Uttar Pradesh minimum wages for all 74 scheduled employments, effective from 1 April 2026 to 30 September 2026. These rates apply uniformly across the state without any zone variation. The VDA for this period is calculated based on the All India Consumer Price Index movement from the applicable base period. Daily wages are computed by dividing the monthly total by 26.

Skill Category Basic Per Month (₹) VDA Per Month (₹) Total Per Month (₹) Daily Rate (₹)
Unskilled 5,750 5,563.65 11,314 435.15
Semi-Skilled 6,325 6,120.00 12,445 478.65
Skilled 7,085 6,855.37 13,940 536.15

Source: Labour Department, Government of Uttar Pradesh. Notification dated 18 February 2026. Effective 1 April 2026 to 30 September 2026. Applies to all 74 scheduled employments. Daily rate = Total monthly ÷ 26. Hourly rate = Daily rate ÷ 6.

📄 Download Official UP Minimum Wages Notification

Official notification for 74 Scheduled Employments and Engineering Factory VDA revision issued by the Labour Department, Government of Uttar Pradesh, dated 18 February 2026. Effective 1 April 2026 to 30 September 2026.

⬇ Download UP Minimum Wages April 2026 (PDF)

Engineering Factories: Separate VDA Rates Effective from 1 February 2026

Engineering factories in Uttar Pradesh employing 50 or more workers operate under a separate wage notification. The Shram Aayukt (Labour Commissioner), Markandeya Sahi, issued Office Letter No. /आई0आर0डी0-2026(प0म0भ0इंजी0) on 18 February 2026, covering engineering factories in the state. This notification applies from 1 February 2026 to July 2026 and uses the AICPI average of 424.8 points for the February to July 2026 period calculated on a base of 239 points (2001=100 series).

Specifically, the VDA for unskilled workers in engineering factories is calculated as: (424.8 minus 239) multiplied by 7440 divided by 239 = 185.8 multiplied by 7440 divided by 239 = Rs. 5,784 (rounded). This gives engineering factory workers significantly higher wages than their counterparts in general scheduled employments, reflecting the more hazardous and technically demanding nature of factory work.

Skill Category Basic Per Month (₹) VDA Per Month (₹) Total Per Month (₹) Daily Rate (₹)
Unskilled 7,440 5,784 13,224 508.62
Semi-Skilled 8,170 6,351 14,521 558.50
Skilled 9,070 7,051 16,121 620.04

Side-by-Side Comparison: Scheduled Employment vs Engineering Factory Wages

Engineering factory workers consistently receive higher wages than workers in general scheduled employments at the same skill level. The following comparison shows the monthly wage difference between the two frameworks for each skill category. This gap reflects the additional VDA component linked to the higher industrial CPI base applicable to engineering factories.

Skill Category 74 Scheduled Employments ₹/Month Engineering Factories ₹/Month Difference ₹/Month
Unskilled 11,314 13,224 +1,910
Semi-Skilled 12,445 14,521 +2,076
Skilled 13,940 16,121 +2,181

How Uttar Pradesh Calculates VDA: The AICPI Formula Explained

Uttar Pradesh links VDA revisions to the All India Consumer Price Index for industrial workers (AICPI). The state government issued the base VDA framework through notifications in 2014 (59 scheduled employments) and 2019 (15 additional employments). The VDA component changes every six months based on AICPI movement above the applicable base points.

For the 74 scheduled employments general notification effective April 2026, the AICPI average for January to June 2025 stands at 414 points over the base year average of 210 (July to December 2012 period). For the engineering factory notification, the AICPI average of 424.8 for February to July 2026 is measured against the base of 239 points in the 2001=100 series. The state notification states that the wage calculation for engineering factory unskilled workers uses the formula: (424.8 minus 239) multiplied by 7440 divided by 239, which gives 185.8 multiplied by 7440 divided by 239, equalling Rs. 5,783.89, rounded to Rs. 5,784.

Furthermore, the state notification also clarifies the daily and hourly rate rules. Daily wages cannot be less than 1/26th of the monthly rate. Hourly wages cannot be less than 1/6th of the daily rate. Overtime work must be compensated at double the ordinary hourly rate.

Which Sectors Are Covered Under UP’s 74 Scheduled Employments

The 74 scheduled employments under Uttar Pradesh minimum wages cover a wide range of industries and services. Employers must first determine whether their business falls under any of these scheduled categories. If it does, the April 2026 wage rates are mandatory. Some of the major categories include the following.

Sector / Employment Type Applicable Notification
Shops and Commercial Establishments 74 Scheduled Employments
Brick Kiln Industry 74 Scheduled Employments
Plastic Manufacturing 74 Scheduled Employments
Textile and Handloom 74 Scheduled Employments
Metal Industry 74 Scheduled Employments
Rubber Industry 74 Scheduled Employments
Construction and Road Works 74 Scheduled Employments
IT Services and Software 74 Scheduled Employments
Healthcare and Hospitals 74 Scheduled Employments
Security Guards (Watch and Ward) 74 Scheduled Employments
Transport and Motor Vehicles 74 Scheduled Employments
Stone Mines and Quarrying 74 Scheduled Employments
Printing Press 74 Scheduled Employments
Sweeping and Cleaning 74 Scheduled Employments
Engineering Factories (50 or more workers) Separate Engineering Factory Notification

Wage Calculation Examples: How to Apply UP Minimum Wages in Practice

Example 1: Unskilled Worker in a Shop in Lucknow

Scenario: A helper working in a retail shop in Lucknow from 1 April 2026.
Applicable Notification: 74 Scheduled Employments (Shops and Commercial Establishments)
Skill Level: Unskilled
Monthly Minimum Wage: Rs. 11,314
Daily Rate: Rs. 435.15 (monthly divided by 26)
Hourly Rate (8 hours): Rs. 54.39 (daily divided by 8)
Overtime Rate: Rs. 108.78 per hour (double the ordinary rate)

Example 2: Skilled Worker in an Engineering Factory in Noida

Scenario: A skilled machine operator in an engineering factory in Noida (50 or more workers) from 1 February 2026.
Applicable Notification: Engineering Factory VDA notification
Skill Level: Skilled
Monthly Minimum Wage: Rs. 16,121
Daily Rate: Rs. 620.04 (monthly divided by 26)
Difference from Scheduled Employment Skilled Rate: Rs. 16,121 minus Rs. 13,940 = Rs. 2,181 per month more
Key Point: An engineering factory paying the general scheduled employment rate of Rs. 13,940 to a skilled factory worker is underpaying by Rs. 2,181 per month per worker. Across 50 skilled workers, the monthly gap is Rs. 1,09,050.

Three Common Compliance Errors UP Employers Make

Applying the Scheduled Employment Rate to Engineering Factory Workers

Many engineering manufacturers in Noida, Ghaziabad, Agra, and Kanpur apply the general 74-scheduled-employment rate to their factory workers without realising that a separate, higher engineering factory notification exists. The engineering factory notification explicitly covers factories employing 50 or more workers. Consequently, any such factory paying the general scheduled employment rate of Rs. 11,314 for unskilled workers is underpaying by Rs. 1,910 per worker per month compared to the correct engineering factory rate of Rs. 13,224. Moreover, since the engineering factory notification is effective from 1 February 2026, the arrear liability runs from February, not April.

Running April 2026 Payroll on October 2025 Rates

Uttar Pradesh revises minimum wages every six months. The October 2025 revision was effective from 1 October 2025 to 31 March 2026. The April 2026 revision, notified on 18 February 2026, applies from 1 April 2026 onwards. Therefore, any employer who ran the April 2026 payroll without updating to the new rates is non-compliant from day one of the month. There is no grace period under the Minimum Wages Act. The violation exists from the first payment at the old rate, and interest accrues from that date.

Miscategorising Semi-Skilled Workers as Unskilled to Reduce Cost

The Rs. 1,131 monthly difference between unskilled (Rs. 11,314) and semi-skilled (Rs. 12,445) wages creates pressure to classify semi-skilled workers as unskilled. Under Uttar Pradesh minimum wages rules, skill classification depends on the nature of work performed, not the designation on the payroll. A worker who operates machinery, reads measurements, or follows technical instructions qualifies as semi-skilled regardless of what the payslip says. Labour inspectors check actual job duties against skill classification. Misclassification exposes the employer to arrears plus penalties for the full period since the worker started performing the higher-skill work.

⚠️ Penalties for Uttar Pradesh Minimum Wages Non-Compliance

Paying below notified Uttar Pradesh minimum wages: Fine up to Rs. 500 for first offence, up to Rs. 1,000 for repeat plus imprisonment up to 6 months
Wage arrears: Must be paid with interest from the date of default
Engineering factory paying general scheduled rates: Underpayment liability from 1 February 2026
Running April 2026 payroll on October 2025 rates: Non-compliance from 1 April 2026
Incorrect skill classification: Arrears for the entire period of misclassification
Not maintaining wage register: Separate penalty under the Minimum Wages Rules
Contract workers at Noida or Greater Noida factories: Minimum wages apply equally to contract and permanent workers. Principal employer holds joint liability.

UP Minimum Wages Compliance Calendar for 2026

Uttar Pradesh follows a predictable revision cycle. Knowing what is coming next allows payroll teams to prepare before the effective date rather than catching up after.

Event Date Action Required
Engineering Factory VDA Effective 1 February 2026 Apply engineering factory rates for all eligible workers (50 or more worker factories)
April 2026 Revision Effective 1 April 2026 Update all payroll to new scheduled employment rates before April salary processing
Next October Revision Expected 1 October 2026 Watch for notification in September. Update payroll by 30 September 2026
Engineering Factory Next Revision August 2026 (expected) Monitor AICPI and state notification. Engineering factory VDA changes every 6 months

Frequently Asked Questions: Uttar Pradesh Minimum Wages 2026

Is there a zone-based wage difference in Uttar Pradesh minimum wages?

No. Unlike states such as Tamil Nadu or West Bengal, Uttar Pradesh does not divide its territory into wage zones. The same minimum wage applies across the entire state, whether the establishment is in Noida, Lucknow, Varanasi, or a rural district. Therefore, employers with multi-city operations within UP need not maintain separate wage records for different locations.

Do the engineering factory rates apply to factories with fewer than 50 workers?

No. The engineering factory VDA notification explicitly states it applies to engineering factories employing 50 or more workers. Smaller engineering establishments with fewer than 50 workers fall under the general 74 scheduled employments framework instead. Consequently, a 45-person engineering unit applies the general scheduled employment rate, while a 55-person unit at the same activity applies the engineering factory rate, which is substantially higher.

How is the skill level of a worker determined under UP minimum wages?

Skill level is determined by the nature of work performed, not by designation or qualifications. Unskilled workers perform tasks requiring no special training or experience. Semi-skilled workers operate machinery, follow technical instructions, or assist skilled workers in a supporting role that requires some practice. Skilled workers hold formal vocational training, trade certifications, or equivalent experience that allows them to independently perform specialised work. Employers who assign semi-skilled work but pay unskilled rates face arrear liability for the difference from the date of actual work commencement.

Do contract workers at Noida factories need to be paid UP minimum wages?

Yes. The Minimum Wages Act, 1948 applies to all workers in scheduled employments regardless of employment arrangement. Contract workers deployed by labour contractors at a Noida manufacturing facility must receive at least the applicable UP minimum wage for their skill category. Additionally, where the contractor fails to pay the correct minimum wage, the principal employer (the factory) can be held jointly liable under the Contract Labour (Regulation and Abolition) Act, 1970.

When is the next UP minimum wages revision after April 2026?

The current revision covers 1 April 2026 to 30 September 2026. The next revision for the 74 scheduled employments is expected to be effective from 1 October 2026. The UP Labour Department typically issues the notification in the weeks before the revision date. Employers should monitor the UP Labour Department portal in September 2026 and update payroll before the October salary cycle runs.

Need Help Applying Uttar Pradesh Minimum Wages Across Your Operations?

Futurex Management Solutions helps businesses in Noida, Lucknow, Ghaziabad, Kanpur, and across Uttar Pradesh apply the correct Uttar Pradesh minimum wages for every revision cycle. We verify whether your establishment falls under the 74 scheduled employments or the engineering factory notification, map every worker to the correct skill category, calculate arrears from February or April 2026, update your payroll system, and set up reminders for the October 2026 revision. Our payroll compliance team also covers PF, ESI, TDS, and statutory register maintenance. First consultation is completely free.