From 1 October 2026 the minimum wage for shops, commercial establishments and factories in Gujarat is ₹524.50 a day for unskilled workers in Zone I (municipal corporation, municipality and urban development authority areas) and ₹513.50 in Zone II, rising to ₹546.50 and ₹534.50 for skilled workers. Each is the basic rate fixed in 2023 plus a special allowance of ₹72.50 a day for October 2026 to March 2027.
Minimum wage rates in Gujarat (1 October 2026 to 31 March 2027)
The basic rates were fixed by notification KHR/2023/28/LVD/10/2022/18/M2 of 27 March 2023 (in force from 1 April 2023) for 46 scheduled employments, including "employment in any shop or commercial establishment" (entry 43) and manufacturing processes in factories (entry 22), which share the same rates. The Labour Commissioner's circular of 5 October 2026 fixes the special allowance for 1 October 2026 to 31 March 2027 at ₹72.50 a day for these 46 employments (six other specified employments get ₹158.50).
| Category | Zone I basic | Zone I total a day | Zone II basic | Zone II total a day |
|---|---|---|---|---|
| Skilled | ₹474.00 | ₹546.50 | ₹462.00 | ₹534.50 |
| Semi-skilled | ₹462.00 | ₹534.50 | ₹452.00 | ₹524.50 |
| Unskilled | ₹452.00 | ₹524.50 | ₹441.00 | ₹513.50 |
| Category | Zone I a month (× 26) | Zone II a month (× 26) |
|---|---|---|
| Skilled | ₹14,209 | ₹13,897 |
| Semi-skilled | ₹13,897 | ₹13,637 |
| Unskilled | ₹13,637 | ₹13,351 |
The notification fixes daily rates. Monthly figures are our arithmetic at 26 days, the basis the notification uses when it converts daily amounts to monthly.
Zones and who is covered
Zone I: areas within municipal corporation limits, municipality limits, and the concerned urban development authority and nagar palika areas. Zone II: all other areas.
Minimum wages apply to every employee, whether paid monthly, daily or by the hour, permanent, temporary or through a contractor. Under the Code on Wages, 2019 the employer must pay at least the notified rate for the category and area. If you use a contractor, check that contract workers are paid at least the same rates.
Worked example
A Surat textile trader (Zone I) employs a packer (unskilled) and a sales clerk (semi-skilled), paid for 26 days in October 2026.
- Packer: ₹524.50 × 26 = ₹13,637 minimum. If paid for 22 days: ₹524.50 × 22 = ₹11,539.
- Sales clerk: ₹534.50 × 26 = ₹13,897 minimum.
- ESI applies (gross within ₹21,000): on ₹13,637 the employee share is 0.75% = ₹103 (rounded up) and the employer's 3.25% = ₹444.
Any full-month wage below ₹13,637 for an unskilled Zone I worker is short from 1 October 2026, and the difference is owed as arrears.
Compliance checklist for employers
- Classify every employee in the notification's categories (unskilled, semi-skilled, skilled, highly skilled or the staff grades) based on the actual work, not the job title alone.
- Compare gross wages for normal hours with the rate for the employee's zone, before PF, ESI and other deductions.
- Revise payroll from the first day of each new rate or VDA period and pay arrears for any period already paid at the old rate.
- Pay overtime at twice the ordinary rate for work beyond normal hours, as the Code on Wages requires.
- Keep wage registers and payslips that show the rate, days worked and deductions.
Minimum wage revisions move PF and ESI too: PF is 12% of wages up to ₹25,000, and ESI applies while gross wages are within ₹21,000 a month.
Keep payroll in step with each revision
Check take-home pay with the salary calculator, the employer and employee shares with the PF calculator and ESI calculator, and show every deduction clearly using the salary slip format. FundRaksha HR turns attendance and leave into paid days, calculates salary with PF, ESI, professional tax and TDS, and issues payslip PDFs, so a VDA revision is a rate change in one place rather than in every row of a spreadsheet.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.