For shops and commercial establishments in Andhra Pradesh, the cost of living allowance from 1 October 2026 to 31 March 2027 is payable on 1,433 points (CPI 1958 less the link point of 525). At ₹6.40 a point that is ₹9,171.20 a month, which takes an attender, peon or helper to about ₹12,871 a month in Zone I and ₹12,541 in Zone II, and a salesman or cashier to about ₹13,691 and ₹13,473. AP's gazette prints the points, not rupee totals, so the totals here are our arithmetic.
Minimum wage rates in Andhra Pradesh (1 October 2026 to 31 March 2027)
Commissioner of Labour, Vijayawada, No. G/3186486/2026 dated 28 September 2026 (Andhra Pradesh Gazette Extraordinary Part II, No. 400): for entry 54, shops and commercial establishments (basic rates under G.O.Ms.No.116, LET&F (Lab.II) Department, 7 December 2007), the link point is 525 and the CPI as on 1 October 2026 is 1958. The rate of ₹6.40 a point is taken from the Labour Department's rate sheet for shops for April to September 2025, which applies the same G.O.; we found no later change to it. AP fixes rates by job designation, not by skill level.
| Designation (examples) | Zone I basic → total a month | Zone II basic → total a month |
|---|---|---|
| Manager, Sales Manager, Security Officer, Computer Programmer | ₹5,557 → ₹14,728.20 | ₹5,357 → ₹14,528.20 |
| Salesman, Cashier, Bill Writer | ₹4,520 → ₹13,691.20 | ₹4,302 → ₹13,473.20 |
| Clerk, Typist, Receptionist | ₹4,102 → ₹13,273.20 | ₹3,886 → ₹13,057.20 |
| Attender, Peon, Helper, Shop Boy | ₹3,700 → ₹12,871.20 | ₹3,370 → ₹12,541.20 |
| Item | Figure | Where it comes from |
|---|---|---|
| CPI as on 1 October 2026 | 1958 | Gazette No. 400 of 28 September 2026 (printed) |
| Link point for shops | 525 | Gazette No. 400 (printed) |
| Points payable | 1,433 | 1958 − 525 (our arithmetic) |
| Rate a point | ₹6.40 a month | Labour Department rate sheet for shops, 2025 (printed) |
| VDA a month | ₹9,171.20 | 1,433 × ₹6.40 (our arithmetic) |
Because the official gazette does not print rupee totals, check the figure with the Labour Department or a rate sheet if one is published for October 2026 to March 2027, and pay at least this amount.
Zones and who is covered
Zone I: all municipal corporations, and selection grade and special grade municipalities. Zone II: the rest of the State.
Minimum wages apply to every employee, whether paid monthly, daily or by the hour, permanent, temporary or through a contractor. Under the Code on Wages, 2019 the employer must pay at least the notified rate for the category and area. If you use a contractor, check that contract workers are paid at least the same rates.
Worked example
A Visakhapatnam (Zone I) supermarket employs a shop boy and a cashier, paid monthly in October 2026.
- Shop boy: ₹3,700 basic + ₹9,171.20 VDA = ₹12,871.20 at least. ESI: employee ₹97 and employer ₹419 (rounded up).
- Cashier: ₹4,520 + ₹9,171.20 = ₹13,691.20 at least.
- PF: VDA is dearness allowance, so PF at 12% on ₹12,871.20 is ₹1,545 from each side.
The VDA here is larger than the basic, so a payslip that shows only the 2007 basic is far below the legal minimum.
Compliance checklist for employers
- Classify every employee in the notification's categories (unskilled, semi-skilled, skilled, highly skilled or the staff grades) based on the actual work, not the job title alone.
- Compare gross wages for normal hours with the rate for the employee's zone, before PF, ESI and other deductions.
- Revise payroll from the first day of each new rate or VDA period and pay arrears for any period already paid at the old rate.
- Pay overtime at twice the ordinary rate for work beyond normal hours, as the Code on Wages requires.
- Keep wage registers and payslips that show the rate, days worked and deductions.
Minimum wage revisions move PF and ESI too: PF is 12% of wages up to ₹25,000, and ESI applies while gross wages are within ₹21,000 a month.
Keep payroll in step with each revision
Check take-home pay with the salary calculator, the employer and employee shares with the PF calculator and ESI calculator, and show every deduction clearly using the salary slip format. Work out pay for part months with the per-day salary calculator and extra hours with the overtime calculator. FundRaksha HR turns attendance and leave into paid days, calculates salary with PF, ESI, professional tax and TDS, and issues payslip PDFs, so a VDA revision is a rate change in one place rather than in every row of a spreadsheet. If you are choosing a tool, see our comparison of the best payroll software in India, and compare every State on the minimum wages by state page.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.