Background
Under Section 3 read with Section 4(1)(i) of the Minimum Wages Act, 1948 (Central Act No. 11 of 1948), the minimum rate of wages for a scheduled employment may consist of a basic rate of wages together with a special allowance adjusted, at intervals, to accord as nearly as practicable with variations in the cost-of-living index number applicable to the workers concerned. In the Union Territory of Dadra & Nagar Haveli and Daman & Diu, this two-part structure is administered by the Department of Labour & Employment, Daman, on behalf of the Administrator, through the following series of notifications:
(i) Notification No. LE/LI/DMN/MWA-3(II)/2023/349 dated August 18, 2023, fixing the basic pay for all scheduled employments;
(ii) Notification No. LE/LI/DMN/MWA-3(11)/2024/507 dated October 28, 2024, fixing the special allowance;
(iii) Notification No. LE/LI/DMN/MWA-3(11)/2025/88 dated May 9, 2025, revising the special allowance;
(iv) Notification No. LE/LI/DMN/MWA-3(11)/2025/1085 dated November 25, 2025, further revising the special allowance; and
(v) Notification No. LE/LI/DMN/MWA-3(II)/2026/70 dated April 30, 2026 (the present declaration), increasing the daily special allowance by ₹12.00 per day with effect from April 1, 2026.
The basic pay fixed in 2023 remains unchanged; the April 2026 declaration revises only the cost-of-living-linked special allowance component, and consequently the total minimum daily wage, for all three skill categories.
Applicability
The revised rates apply to all employers in the Union Territory of Dadra & Nagar Haveli and Daman & Diu engaging workers in any employment covered by the Schedule to the Minimum Wages Act, 1948 and apply uniformly across the Union Territory, without any zone-wise or employment-wise differentiation, to workers in the Unskilled, Semi-Skilled and Skilled categories. The notification has been circulated, among others, to the All-Industries Association and the Hoteliers Association, DNH/DD, for the information of their members.
Compliance Requirements
With effect from April 1, 2026, the daily rate of special allowance payable on the basis of the cost-of-living index number has been increased by ₹12.00 per day, raising the special allowance from ₹48.50 to ₹60.50 per day for every category of worker. Combined with the unchanged basic pay, the minimum rates of wages payable per day in respect of all employments in the Schedule are as follows:
Class of Employment | Basic (₹/day) | Special Allowance (₹/day) | Total (₹/day) | Total (₹/month) |
Unskilled | 441.00 | 60.50 | 501.50 | 13,039 |
Semi-Skilled | 452.00 | 60.50 | 512.50 | 13,325 |
Skilled | 462.00 | 60.50 | 522.50 | 13,585 |
Penalty and Consequences
Under Section 22 of the Minimum Wages Act, 1948, an employer who pays an employee less than the minimum rate of wages fixed for that employee’s class of work, or who contravenes any rule or order made under Section 13 of the Act, is punishable with imprisonment for a term extending up to six months, or with fine extending up to ₹500, or with both.
Under Section 22A of the Act, any employer who contravenes any other provision of the Act or of any rule or order made thereunder, for which no specific penalty is otherwise provided, is punishable with a fine extending up to ₹500.
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