Gujarat Labour Law Compliance Guide for Employers, 2026 Edition

The 4 Labour Codes, What Changed (Effective 21 November 2025)

India's four new Labour Codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health & Working Conditions (OSH) Code: came into force on 21 November 2025, consolidating 29 central labour laws into four.

What this means for Gujarat employers:

• The Codes now sit above many existing Gujarat state laws. Several state acts (Shops & Establishments, Professional Tax administration, Labour Welfare Fund) continue to operate, but increasingly within the framework of the Codes.
• "Wages" is now defined uniformly: basic + DA + retaining allowance must be at least 50% of total remuneration, which changes PF, gratuity and bonus calculations for most salary structures.
• Appointment letters are now mandatory for every employee.
• Important: the Codes are in force and the Central Rules under them were notified on 8 May 2026. Gujarat’s own State Rules can differ in detail, so check the latest Gujarat notification before relying on a state-specific rule. During this transition, employers should comply with both the existing Gujarat acts and the new Codes, we track both so you stay covered.

Two practical notes. State rules under the four codes are notified state by state; for a worked example of what notified rules change, see our Karnataka Labour Code state rules guide. And if you would rather not run payroll and attendance registers in-house, compare the top payroll outsourcing companies in India, or move to a cloud HRMS with an attendance module that keeps these records current automatically.

Last updated: 27 October 2026. Labour Code rules are evolving; we update these guides as new notifications are issued.

Gujarat Labour Code Rules 2026: OSH and Code on Wages

The four Labour Codes apply across India, but each state notifies its own rules under them. For employers in Gujarat, that means checking two things: the central Codes and the Gujarat rules under each Code.

• Code on Wages: state rules on minimum wages, wage payment and bonus.
• OSH Code: state rules on registration, licences, working hours and welfare facilities.
• Industrial Relations Code: state rules on standing orders, layoffs and disputes.
• Social Security Code: state rules on social security schemes and welfare boards.

What to do now: review your payroll, contracts and registers against the Gujarat rules as they are notified, and keep following the existing state acts until they are fully replaced. Factories in GIDC estates and shops in Ahmedabad, Surat and Vadodara should check both.

Free download: plan your year with our statutory compliance calendar 2026 to 27.

Gujarat-Specific Labour Laws

1. Gujarat Professional Tax

• Maximum annual PT: ₹2,400
• Monthly filing with Gujarat PT department
• Due date: End of the following month
• Salaries up to ₹12,000/month are exempt (all employees)

2. Gujarat Labour Welfare Fund (GLWF)

• Employee contribution: ₹6 per half-year
• Employer contribution: ₹12 per half-year per employee
• Due dates: 15 July (for the June register) and 15 January (for the December register)
• Payment: online only, through the Gujarat Labour Welfare Board's E-Seva service (since 1 July 2022)

3. Gujarat Shops and Establishments Act, 2019

The new Gujarat Act (replacing the 1948 version) provides modernized provisions:

• Applies to establishments with 20 or more workers since the Gujarat Shops and Establishments (Amendment) Act, 2026, in force from 16 December 2025 (it was 10 before); smaller establishments send an intimation
• Online registration within 60 days of commencement
• Working hours: 10 hours/day, 48 hours/week, with a rest break after 6 hours (from 16 December 2025)
• Overtime at double the rate beyond 10 hours a day or 48 hours a week, up to 144 hours a quarter
• Women may work between 9 pm and 6 am with their consent, where the employer provides a rest room, night creche, ladies toilet, protection from sexual harassment and transport to their door
• Leave: 7 casual and 7 medical days a year, plus earned leave of 1 day for every 20 days worked (see the leave section below)
• Simplified registration process

4. Gujarat Minimum Wages

Gujarat minimum wages have two parts: a basic rate fixed by notification (the current one is dated 27 March 2023) and a special allowance revised every April and October. From 1 October 2026 to 31 March 2027 the special allowance is ₹72.50 a day for shops and commercial establishments and the other general scheduled employments (Labour Commissioner circular dated 5 October 2026). Zone I covers municipal corporation, municipality and urban development authority areas, including Ahmedabad, Surat, Vadodara and Rajkot.

Six employments get a higher allowance of ₹158.50 a day: brick making, zari, readymade garments, salt, tobacco and bidi making, and agriculture. Compare only the basic rate plus the special allowance with the minimum; HRA, conveyance, overtime and bonus are paid on top. See our October 2026 minimum wage update for other states.

Leave and working hours under the Gujarat Shops and Establishments Act

The Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 applies to shops and establishments with 20 or more workers in Gujarat (10 before the amendment in force from 16 December 2025). It sets these minimums:

Central Laws in Gujarat

• EPF: 12%+12% for establishments with 20+ employees
• ESIC: 3.25% + 0.75% for eligible employees
• Bonus: 8.33% to 20%
• Gratuity: After 5 years, formula-based

Gujarat Compliance Calendar

Industries in Gujarat

• Pharmaceuticals: Ahmedabad pharma corridor
• Textiles: Surat diamond and textile industry
• Manufacturing: GIDC industrial estates across Gujarat
• IT & Services: Growing presence in Ahmedabad and GIFT City
• Chemicals & Petrochemicals: Vadodara chemical cluster
• Ceramics: Morbi ceramic hub

HRTailor in Gujarat

With our branch office at 601-603, Aries Galleria, Vasana Road, Vadodara 390015, HRTailor offers on-ground compliance support for Gujarat businesses. Our Gujarat team understands local industry dynamics and state-specific regulatory requirements.

FAQs, Gujarat Labour Compliance

What is the PT rate in Gujarat?

Gujarat PT is ₹200/month for salaries above ₹12,000. Salaries up to ₹12,000 are exempt, for all employees.

Does HRTailor have an office in Gujarat?

Yes, HRTailor has a branch office in Vadodara at Aries Galleria, Vasana Road. We serve businesses across Gujarat including Ahmedabad, Surat, Rajkot, and GIDC areas with in-person support.

What are GLWF rates in Gujarat?

Gujarat Labour Welfare Fund contributions are ₹12 per half-year from the employer and ₹6 per half-year from the employee, due by 15 July and 15 January.

Is the new Gujarat Shops Act different from the old one?

Yes, the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 replaced the 1948 version. It offers simplified online registration, modernized working hour provisions, and women's night shift allowance. The 2026 amendment, in force from 16 December 2025, limits it to establishments with 20 or more workers and allows 10 hours a day and 144 overtime hours a quarter.

How does HRTailor handle Gujarat compliance?

HRTailor manages all Gujarat compliance from our Vadodara office, PT filing, GLWF contributions, Shops Act registration, PF/ESIC, TDS returns, and minimum wage compliance. Local presence ensures faster response for Gujarat clients.

When do the new labour codes apply in Gujarat?

The four Labour Codes have applied across India since 21 November 2025. Each state also notifies its own rules under the Codes, so Gujarat employers must follow both the Codes and the state rules as they are notified. HRTailor tracks every Gujarat notification and updates your compliance as rules change.

What are the Gujarat OSH Rules 2026?

They are Gujarat's state rules under the Occupational Safety, Health and Working Conditions Code. They cover registration, licences, working hours, welfare facilities and safety duties for establishments in Gujarat. Check how they apply to your factories, shops and contract workers, or ask HRTailor to review it for you.