What’s New?
The Government of Uttar Pradesh has announced a revised wage structure for workers in the hospitality sector, including hotels, restaurants, and roadside eateries. This revision reflects an updated Variable Dearness Allowance (VDA)based on inflation data, ensuring fair compensation in line with the rising cost of living. The changes will help boost the welfare and financial security of thousands of workers in this service-driven industry.
Effective Period
- Start Date: April 1, 2025
- End Date: September 30, 2025
How Are the Wages Calculated?
The Variable Dearness Allowance (VDA) has been revised using the average Consumer Price Index (CPI) from July to December 2024, which stands at 413.42 (with a base year index of 239 from 2001). This CPI-based revision ensures that wage levels remain relevant and responsive to inflation.
Updated Monthly Wage Structure (Skill-wise and Establishment-wise)
Small Hotels & Roadside Eateries (Less than 10 Workers)
- Unskilled: ₹6,350 (Basic) + ₹4,634.17 (VDA) = ₹10,984.17
- Semi-skilled: ₹7,000 + ₹5,108.84 = ₹12,108.84
- Skilled: ₹7,840 + ₹5,721.56 = ₹13,561.56
Larger Hotels & Restaurants (More than 10 Workers)
- Unskilled: ₹6,730 + ₹4,911.49 = ₹11,641.49
- Semi-skilled: ₹7,420 + ₹5,415.05 = ₹12,835.05
- Skilled: ₹8,310 + ₹6,064.56 = ₹14,374.56
- Highly Skilled: ₹8,975 + ₹6,549.87 = ₹15,524.87
Star-Rated Hotels & Premium Hospitality Establishments
- Unskilled: ₹7,540 + ₹5,502.62 = ₹13,042.62
- Semi-skilled: ₹8,980 + ₹6,553.52 = ₹15,533.52
- Skilled: ₹10,640 + ₹7,764.97 = ₹18,404.97
- Highly Skilled: ₹12,565 + ₹9,169.82 = ₹21,734.82
Why This Wage Revision Matters
This wage update serves multiple objectives :
- Inflation Protection: Wages are adjusted to match the rising cost of living, preserving real income for workers.
- Equity in Compensation: Establishes fair pay across various establishment types—from local dhabas to high-end hotels.
- Worker Welfare: Helps attract and retain skilled labour in the growing hospitality sector of Uttar Pradesh.
- Legal Compliance: Ensures that employers across the state are adhering to the latest labour laws and wage mandates.
Conclusion
The revised VDA structure effective from April 1, 2025, is a significant step toward strengthening labour rights in Uttar Pradesh’s hospitality industry. By linking wage revisions to inflation, the government reinforces its commitment to worker welfare, economic fairness, and transparent governance in labour policy. Employers should promptly update their payroll systems and ensure compliance to avoid penalties and foster a motivated workforce.