Minimum Wages & Variable Dearness Allowance in Goa for Scheduled Employments

Background

Under the Minimum Wages Act, 1948 (Central Act No. 11 of 1948), the Government of Goa fixes and periodically revises minimum rates of wages for scheduled employments in the State, and these rates are linked to a Variable Dearness Allowance (VDA) that moves with the cost-of-living index. The basic minimum rates for the scheduled employments were revised through separate notifications dated August 10, 2023.

The Office of the Commissioner, Labour and Employment, Panaji, has now issued an Order (No. CLE/PA/MWA-VDA/(10)/2016/1547, dated April 29, 2026) revising the VDA payable across those employments, in exercise of the powers conferred by the Government vide the notifications dated August 10, 2023. The Order revises the VDA on the basis of the average Consumer Price Index Number for Industrial Workers for the preceding six months, i.e. June 2025 to December 2025, which reached 424.8 (rounded to 425 points) from 379 (Base 2001=100), an increase of 46 points. The revised VDA is ₹149 per day and takes effect from April 1, 2026. The revision covers 20 scheduled employments, each governed by a separate notification dated August 10, 2023, as detailed below.

Applicability

The revised VDA applies to all employers in the State of Goa engaging employees in the twenty scheduled employments covered by the Order, including shops and commercial establishments, hotels, restaurants and eating houses, watch and ward services, other commercial and industrial establishments, road and building construction and maintenance, stone breaking and crushing, pharmaceutical units, cashew factories, cinemas, electronics units, automobile workshops, motor transport undertakings, private hospitals, nursing homes and clinics, printing and book binding units, food processing and canning units, breweries and distilleries, readymade garment units, bricks and tiles units, saw mills, agriculture, and cotton textile and allied units. The uniform VDA of ₹149 per day is payable to all categories of employees employed in these scheduled employments.

Compliance Requirements

  1. Revised Variable Dearness Allowance

The Commissioner has revised the VDA to ₹149 per day for all categories of employees in the scheduled employments, effective April 1, 2026. Employers must add this VDA to the basic minimum rate notified for the relevant employment and category (unskilled, semi-skilled, skilled, highly skilled/supervisory and clerical) under the August 10, 2023 notifications, and update payroll accordingly. The Order itself does not restate the basic rates or the resulting total daily or monthly wage.

Particular

Earlier

Revised (w.e.f. April 1, 2026)

Variable Dearness Allowance

[Earlier rate to be confirmed]

₹149 per day

Average CPI for Industrial Workers (Base 2001=100)

379

425 (424.8, rounded)

Increase in CPI

—

46 points

CPI reference period

—

June 2025 to December 2025

  1. Scheduled Employments Covered and Underlying Notifications

The VDA revision applies to the following scheduled employments, each governed by its own notification dated August 10, 2023, which continues to fix the basic minimum rates for that employment.

S. No.

Scheduled Employment

Notification No. (dated 10.08.2023)

1

Employment in any shop and commercial establishment other than a residential hotel, restaurant or eating house

24/21/2009-LAB-III/(01)/551

2

Employment in any residential hotel, restaurant or eating house

24/21/2009-LAB-III/(02)/552

3

Employment in Watch and Ward

24/21/2009-LAB-III/(03)/553

4

Employment in any commercial or industrial establishment engaged in commercial, manufacturing and service activities, other than those covered under any other entry in the Schedule

24/21/2009-LAB-III/(04)/554

5

Employment in

(i)     construction or maintenance of roads or in building operations,

(ii)    stone breaking and stone crushing, and

(iii)   maintenance of building

24/21/2009-LAB-III/(05)/555

6

Employment in the pharmaceutical industry and units engaged in the manufacture, sale and distribution of medicines and pharmaceutical products

24/21/2009-LAB-III/(06)/556

7

Employment in cashew factories and establishments

24/21/2009-LAB-III/(07)/557

8

Employment in the cinema exhibition industry

24/21/2009-LAB-III/(08)/558

9

Employment in units engaged in the manufacture, assembling of electronic goods and components and distribution and sale of electronic products

24/21/2009-LAB-III/(09)/559

10

Employment in automobile repairing workshops and garages

24/21/2009-LAB-III/(10)/560

11

Employment in public motor transport undertaking and private motor transport undertaking

24/21/2009-LAB-III/(11)/561

12

Employment in private hospitals, nursing homes, dispensaries, medical clinics, radiology, pathology laboratories and surgical clinics, including establishments where medical treatment is given to patients

24/21/2009-LAB-III/(12)/562

13

Employment in any industry in which printing by letter press, lithography, photogravure or other similar work incidental to such process, or book binding, is carried on

24/21/2009-LAB-III/(13)/563

14

Employment in processing and canning of food stuff including fish and beverages

24/21/2009-LAB-III/(14)/564

15

Employment in breweries and distilleries

24/21/2009-LAB-III/(15)/565

16

Employment in readymade garments manufactory

24/21/2009-LAB-III/(16)/566

17

Employment in bricks and tiles manufacture

24/21/2009-LAB-III/(17)/567

18

Employment in saw mills

24/21/2009-LAB-III/(18)/568

19

Employment in agriculture

24/21/2009-LAB-III/(19)/569

20

Employment in cotton textile, cotton spinning, cotton pressing, manufacture of cotton fibre, thread yarn spinning and weaving including handloom weaving

24/21/2009-LAB-III/(20)/570

  1. General Conditions Applicable to the Revised VDA

The following conditions are drawn from the Order:

  • The VDA is ₹149 per day, uniformly for all categories of employees in the scheduled employments listed in the Order.
  • The revision is based on the average Consumer Price Index Number for Industrial Workers for the six months from June 2025 to December 2025 (Base 2001=100), which rose from 379 to 425 points, an increase of 46 points.
  • The Order operates on the basic rates fixed by the notifications dated August 10, 2023; it revises only the VDA component.

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.

Reference: https://compezz-my.sharepoint.com/:b:/g/personal/compliance_corplico_com/IQDZFduPNj0zS5f_RxRwSqZ2AR272r_NIlxBairZ8ZE-bF4?e=75UM36

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

To stay updated Subscribe to our newsletter today

Explore other Legal updates on the Corplico and follow us on LinkedIn to stay updated 

Post Views: 30

Schedule A Demo