Overview
The Government of Gujarat released its latest minimum wage notification, coming into effect from 1st October 2025. This revision directly impacts all scheduled employments and is crucial for employers, HR professionals, and workers to ensure statutory compliance and fair wages.
- Legal Framework
Minimum wages in Gujarat are governed under the Minimum Wages Act, 1948, and relevant state rules. The wages are declared biannually based on skill category and geographic zones, with adjustments for cost of living via the Variable Dearness Allowance (VDA).
- Highlights of the Notification
Date of Notification: 30th September 2025
Effective Date: 1st October 2025
Validity: Until 31st March 2026
Applicability: All 46 scheduled employment categories in both Zone I and Zone II.
- Zone Definitions
- Zone I: Urban/metro centers (all municipal corporations)
- Zone II: Major municipalities with a population over 1 lakh
- Structure of Minimum Wages (Effective October 2025)
| Skill Level | Zone | Basic/Day (₹) | VDA/Day (₹) | Total/Day (₹) | Total/Month (₹) |
|---|---|---|---|---|---|
| Unskilled | I | 452 | 48.50 | 500.50 | 13,013 |
| Unskilled | II | 441 | 48.50 | 489.50 | 12,727 |
| Semi-skilled | I | 462 | 48.50 | 510.50 | 13,273 |
| Semi-skilled | II | 452 | 48.50 | 500.50 | 13,013 |
| Skilled | I | 474 | 48.50 | 522.50 | 13,585 |
| Skilled | II | 462 | 48.50 | 510.50 | 13,273 |
- Notes:
- VDA: The Variable Dearness Allowance, fixed at ₹48.50/day for Oct 2025–Mar 2026 for all categories, is revised based on consumer price index (CPI) data for Ahmedabad.
- Wage Calculation: Monthly wages are calculated for 26 working days, not 30.
- Mandatory Compliance: It is mandatory for all registered establishments to follow these rates; non-compliance can result in legal action.
- Legal & Compliance Aspects
- Any organization, factory, shop, or contractor employing labour in Gujarat must pay at least the prescribed minimum wage as per the latest notification.
- The wage rates apply to all 46 scheduled employments as notified by the Gujarat Labour & Employment Department, covering sectors such as manufacturing, construction, cleaning, ship-breaking, and more.
- Definition of Worker Categories:
- Unskilled: Simple, repetitive manual tasks.
- Semi-skilled: Routine tasks requiring some training.
- Skilled: Efficient, independent work requiring advanced knowledge and judgment.
- Why The Change?
The wage revision reflects inflation trends (seen in VDA adjustment), ensures wage parity with local market conditions, and helps safeguard the real income of the working class in Gujarat.
- Practical Steps for Employers
- Update Payroll Systems with new wage rates immediately.
- Review Compliance for all employees (including contract and daily wage labour) to avoid penalties.
- Display Notification at workplaces as per the statutory requirement.
- References
- Minimum Rate of Wages – Gujarat (October, 2025), SGCMS
- Gujarat Minimum Wages (Oct 2025 – Mar 2026) Notification, PCSMGMT Blog
- FactoHR Minimum Wages in Gujarat 2025-26
- Minimum Wages in Gujarat w.e.f 01-10-2025 To 31-03-2026, RajConsultancy PDF
For official circulars, visit the Labour & Employment Department, Government of Gujarat’s website.
One Response
Hi, this is a comment.
To get started with moderating, editing, and deleting comments, please visit the Comments screen in the dashboard.
Commenter avatars come from Gravatar.