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Guide explaining whether manpower contractors can claim wage escalation from Government buyers after minimum wage or VDA revision, including reimbursement, contract clauses and statutory compliance.

Can I Claim Wage Escalation from a Government Buyer? Complete Guide for Manpower Contractors

A manpower contractor may be able to claim additional cost arising from a statutory minimum-wage or VDA increase, but reimbursement is not automatic. The right to recover the increase depends on the tender, GeM service conditions, Buyer Added Terms, price-variation or statutory-variation clause, and the wording of the awarded contract. Employee wage compliance and buyer reimbursement must be treated as two separate issues.

DhirekOne Editorial Team · 08 Oct 2026 · 14 min read

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