How Do Minimum Wage Revisions Affect an Existing Manpower Contract?
If minimum wages or VDA increase during an ongoing manpower contract, the contractor must generally start paying the revised statutory wage from the effective date, even if the original tender was calculated using an older rate. Whether the buyer reimburses the additional cost depends on the contract, GeM service conditions, Buyer ATC and applicable price-revision clauses. This guide explains how wage revisions affect payroll, PF, ESIC, billing, service charges and contract profitability.
DhirekOne Editorial Team · 08 Oct 2026 · 14 min read