Businesses operating in Andhra Pradesh must immediately update their payroll systems to reflect the newly revised minimum wage rates for the Shops and Commercial Establishments sector. The Andhra Pradesh government has issued a major revision, effective from October 1, 2025, significantly impacting payroll obligations.
This expert blog post from SGC Services provides a clear breakdown of the changes to help employers ensure full and timely compliance.
The New Mandate: Understanding the Andhra Pradesh Wage Revision
The revisions were introduced via Variable Dearness Allowance (VDA) adjustments linked to the Consumer Price Index (CPI) points. This is not a slight tweak; it is a substantial change to the total wages payable across various categories.
The updated rates are calculated based on:
- Notification Reference: G.O.Ms.No.116, LET&F (Lab.II) Dept., dt:07-12-2007
- Wages Linked At: 525 CPI Points
- Current CPI Points (as of 01.04.2025): 1886 points
- VDA Payable (Oct 1, 2025 – Mar 31, 2026): 1361 points
- Per Point VDA Rate: ₹6.40
This adjustment translates into a significant increase in the total minimum compensation required for employees in Zone I. Zone I covers all Municipal Corporations in AP, Selection Grade, and Special Grade Municipalities. Zone II covers the rest of the state, and rates for Zone II are proportionally different (though the VDA calculation methodology remains consistent).
Detailed Breakdown of Revised Wages (Zone I)
To ensure clarity, we have structured the new minimum wage data in an easy-to-compare table format. This table details the Basic Wage, the new VDA amount, and the resulting Total Minimum Wage payable for the period of October 1, 2025, to March 31, 2026, within Zone I commercial establishments.
The amended rates for all the categories are as below:-
| ANDHRA PRADESH SHOPS AND COMMERCIAL ESTABLISHMENTS | ||||
| Notification issued vide G.O.Ms.No.116, LET&F (Lab.II) Dept., dt:07-12-2007 | ||||
| Published in Gazette No.705 , dated 19-12-2007 | ||||
| Wages Linked at 525 CPI Points,CPI points notified as on 01.04.2025 = 1886 points | ||||
| VDA to be paid from 01-10-2025 to 31-03-2026 = 1361 points, per point rate of VDA notified in notification= 6.40 | ||||
| Minimum Wages and VDA payable from 01.10.2025 TO 31.03.2026 | ||||
| Sl.No. | Name of the Category | Basic Wage ZONE I | VDA ZONE I | Total Wage ZONE I |
| COMMERCIAL ESTABLISHMENTS | ||||
| 1 | Manager/Field Officer/Development Officer/Security Officer/Office Incharge/Computer Programmer | 5557 | 8710 | 14267 |
| 2 | Accountant/Asst. Manager/Sales Executive/Supervisor/Purchaser/Store Keeper/Agent/Sales Promotion Employees | 4722 | 8710 | 13432 |
| 3 | Salesman/Stenographer/Receptionist/Auction Bider/Tradesman/Type Writer Instructor/Electrician/Radio Mechanic/Optical Mechanic/Surfacer/Griender/Photographer/Photo Artist/Typre Writer Mechanic/T.V Mechanic/Fitter/Turner/Welder and Plumber/Mason etc. | 4520 | 8710 | 13230 |
| 4 | Clerk/Typist/Clerk-cum-Typist/Godown In charge/Lineman/Assistant Salesman/Asst. Accountant/Xerox Machine Operator | 4102 | 8710 | 12812 |
| 5 | Weighman/Kolgari/Computer Operator | 3886 | 8710 | 12596 |
| 6 | Peon/Attender/Watchman/Water Boy/Helper/Messenger/Security Guard | 3700 | 8710 | 12410 |
| Zone:I = Means all Municipal Corporations in A P, Selection Grade and Special Grade Municipalities. | ||||
| Zone-II = Means rest of the areas in the State. | ||||
Revised Andhra Pradesh minimum wages notification attached for your reference.
How SGC Services Ensures Your Business Remains Compliant
Navigating frequent changes to state-level minimum wages across India is complex and time-consuming. Failure to implement these changes immediately can lead to significant legal penalties, back-pay demands, and damage to employee relations.
SGC Services is your trusted partner in managing regulatory complexity. We specialize in providing end-to-end compliance and Human Resource services:
- Precise Payroll Management: Our payroll experts automatically integrate the latest minimum wage notifications into your monthly processing, ensuring every employee is paid correctly and on time according to the revised scales.
- HR Compliance Audits: We conduct thorough audits of your current compensation structures against state and central labour laws to proactively identify gaps.
- Regulatory Updates: We provide timely "Compliance Alerts" like this one, ensuring you are always ahead of legislative changes without having to monitor official gazettes yourself.
The revised minimum wages in Andhra Pradesh are immediately applicable. Businesses must act quickly to update their systems to avoid non-compliance issues. This revision highlights the dynamic nature of labor law in India and the critical need for robust, proactive compliance management.
Don’t risk penalties. Ensure your business is fully compliant with the new Andhra Pradesh minimum wage requirements today.
Contact SGC Services immediately for a free compliance consultation and learn how our payroll and HR experts can streamline your operations and guarantee adherence to all updated labor laws.
Thank you for reading. We hope the information was helpful to you!
Team SGC Services
NOIDA | DELHI | MUMBAI | BANGALORE
#TeamSGC #SGCSERVICES #PayrollOutsourcing
Visit us: www.sgcservices.com
02 AP S&E Minimum Wages 01-10-25 to 31-03-26.pdf
AP M Wages GO_01.10.2025 to 31.03.2026.pdf
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