October salaries may already have been processed, but employers now need to check whether those payments meet the revised minimum wages.
The Department of Labour & Employment, UT Administration of Dadra & Nagar Haveli and Daman & Diu, has issued Declaration No. LE/LI/DMN/MWA-3(II)/2026/437 dated 4 November 2026, increasing the special allowance by ₹12 per day with effect from 1 October 2026.
The declaration covers all scheduled employments referred to in it across Dadra & Nagar Haveli, Daman and Diu.
What has changed?
Basic daily wages remain unchanged. The cost-of-living-linked special allowance increases from ₹60.50 to ₹72.50 per day.
Category | Basic per day | Special allowance per day | Revised total per day |
|---|---|---|---|
Unskilled | ₹441.00 | ₹72.50 | ₹513.50 |
Semi-skilled | ₹452.00 | ₹72.50 | ₹524.50 |
Skilled | ₹462.00 | ₹72.50 | ₹534.50 |
The declaration refers to the basic-wage notification dated 18 August 2023 and subsequent special-allowance revisions. It is expressly issued as a declaration under the Minimum Wages Act, 1948.
What is the payroll impact?
The earlier official declaration prescribed daily totals of ₹501.50, ₹512.50 and ₹522.50 respectively. The present revision increases each category by ₹12 per day. cdnbbsr.s3waas.gov.in
For a simple comparison using 26 payable days:
Category | Earlier amount × 26 days | Revised amount × 26 days | Difference |
|---|---|---|---|
Unskilled | ₹13,039 | ₹13,351 | ₹312 |
Semi-skilled | ₹13,325 | ₹13,637 | ₹312 |
Skilled | ₹13,585 | ₹13,897 | ₹312 |
These are illustrative calculations. The declaration specifies daily rates; it does not separately notify monthly rates or prescribe a 26-day conversion.
Consider an unskilled worker paid at ₹501.50 per day for 26 payable days in October. The revised benchmark is ₹513.50 per day, resulting in a ₹312 shortfall for those days. Where wages were paid exactly at the earlier minimum, the difference should be calculated and paid from the effective date.
For employees already receiving higher wages, employers should examine the legally countable wage components and applicable employment terms before deciding whether any shortfall exists.
What should employers do now?
Update payroll: Apply the revised rates from 1 October 2026.
Check classifications: Match the skill category with the work actually performed.
Reconcile October wages: Calculate and pay any shortfall with a clear arrears working.
Review contractor payments: Obtain revised wage sheets and payment evidence for covered workers.
Check linked calculations: Review overtime and statutory calculations wherever the revised wage base affects them.
Maintain records: Retain the declaration, revised wage workings, payslips and payment proof.
The immediate priority is to review October payroll and document any correction. The declaration’s November issue date does not shift its stated effective date to November.