Gujarat Social explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Code on Social Security (Gujarat) (Amendment) Rules, 2026 change seven points in the Gujarat social security rules. Two concern gratuity (rule 7(a) and Form IV), three concern employees' compensation and the Building Workers' Board (rules 14, 14A and 70), and two others are rule 79 and the new rule 89A. This article sets the old words against the new, rule by rule.
The rules are the Code on Social Security (Gujarat) Rules, 2023, as notified on 30 December 2023 (No. GR/2023/158/PGA/172021/24659/M3) and amended by the Code on Social Security (Gujarat) (Amendment) Rules, 2026 dated 28 January 2026. A fixed term employee's gratuity eligibility moves from Five years to One year under the contract; the employer deposits Fifteen thousand rupees or the higher amount prescribed by the Central Government for funeral expenses within Forty Eight hours of a fatal incident. The Amendment Rules come into force on the date of their publication in the Official Gazette; that Gazette date is not printed in the notification text.
Later amendments and State notifications under these rules should be checked in the State Gazette.
The notification
The Amendment Rules bear No. GR/2026/14/PGA/172021/24659/M3 of the Labour, Skill Development and Employment Department, Gandhinagar, dated 28 January 2026. They recite that draft rules were published under section 156(1) of the Code on 18 August 2025 (notification of 5 August 2025), inviting objections within forty-five days, and that no objection or suggestion was received. They are made under sections 154(1) and 156(1) of the Code on Social Security, 2020.
Rule 1(2) reads: "They shall come into force on the date of their publication in the Official Gazette." The Gazette date is not printed in the notification text, so this article states no date from which the amendments apply. The base rules come into force, under rule 1(3) of the 2023 Rules, "from the commencement of the Code on Social Security, 2020"; the four Labour Codes were brought into force from 21 November 2025. For the base notification, see our article on the Employees' Insurance Court and the Board. Employers adjusting policies to these changes can use our payroll compliance audit.
The changes, old against new
| Amendment rule | Provision | Old words (2023 Rules) | New words (2026) |
|---|---|---|---|
| 2 | Rule 7(a), second proviso | Fixed term employee eligible for gratuity if he renders service under the contract for a period of five years | "Five years" substituted by "One year" |
| 3(i) | Rule 14 | "When application may be made without medical certificate" | Rule 14 substituted: "Deposit of funeral expenses" |
| 3(ii) | Rule 14A | None | Inserted: "When application may be made without medical certificate" |
| 4 | Rule 70 | Board may implement any scheme of the State Government which it deems fit | Rule 70 substituted with two sub-rules |
| 5 | Rule 79(1) | Board shall meet at least once in four months | "four months" replaced by "three months" |
| 6 | Rule 89A | None | Added: borrowing of funds and benefit funds for staff |
| 7 | Form IV | Nomination form | Substituted |
Gratuity: rule 7(a), second proviso (amendment rule 2)
The proviso provides that an employee on fixed term employment is eligible for gratuity if he renders service under the contract for a period of five years, paid at fifteen days' wages, based on the rate last drawn, for every completed year of service or part thereof in excess of six months. The amendment replaces the period: after the amendment it is one year. The rate of fifteen days' wages for each completed year or part in excess of six months is unchanged. Our article on gratuity nomination, application and recovery states the rule as amended.
Gratuity: Form IV (amendment rule 7)
The nomination form, used under rule 6 for nomination, fresh nomination and modification, is substituted. The substituted form keeps the structure of the 2023 form (the nomination or notice of modification, the certification on family within clause (33) of section 2, the declarations on dependents, the table of nominees with relationship, age and proportion, the statement of the employee's particulars, the certificate by the employer and the acknowledgement). Two differences can be read from the printed forms: a Declaration by Witnesses block (names and addresses of two witnesses before whom a fresh nomination is signed or thumb-impressed) now appears; and the employee's acknowledgement refers to "the duplicate copy of nomination in Form-IV", where the 2023 form read "Form-I".
Employees' compensation: rules 14 and 14A (amendment rule 3)
Rule 14, made under section 76(7), now covers the deposit of funeral expenses. If an injury results in death, the employer, in addition to compensation under section 76(1), deposits with the competent authority a sum of Fifteen thousand rupees or the higher amount as prescribed by the Central Government from time to time, within Forty Eight hours of such incident, towards the funeral expenses, payable to the eldest surviving dependent and excluding the transport charges of the body. The competent authority calculates actual transport charges and passes an order, and the employer deposits that amount within Forty Eight hours of the death. Where the employee had no dependent or was not living with dependents, the funeral expenses and transport charges are paid to whoever actually incurred them. These sums are in addition to compensation. Details are in our article on employees' compensation procedure.
The earlier rule 14, which allowed a review application under section 79 without a medical certificate on listed grounds (increase in wages, diminished wages, cessation of payment, fraud or undue influence, mistake or error apparent on the face of the record), is now rule 14A, inserted after rule 14. The grounds read the same as before.
Building Workers' Board: rule 70 (amendment rule 4) and rule 89A (amendment rule 6)
Rule 70, "Powers of the Board to implement any scheme of State Government", is substituted. Sub-rule (1) says the Gujarat Building and Other Construction Workers Welfare Board shall (a) pay such amount in connection with the premium for the Group Insurance Scheme of the beneficiaries, (b) frame educational schemes for the benefit of children of the beneficiaries, and (c) meet such medical expenses for treatment of major ailments of beneficiaries or their dependents as may be notified by the State Government from time to time. Sub-rule (2) keeps the power to implement any scheme of the State Government that the Board deems fit. Rule 89A, added after rule 89, says the State Government shall frame and notify from time to time a detailed policy on borrowing of funds and benefit funds for staff under section 120(3) and (4), in consultation with the State Unorganised Social Security Board and the State Building and Other Construction Workers Welfare Board.
Board meetings: rule 79(1) (amendment rule 5)
In rule 79(1), which fixes the minimum frequency of Board meetings, "four months" is replaced by "three months".
A worked example
Sarthi Logistics Pvt Ltd, Surat, engages a driver on a one-year fixed term contract. After the amendment, the proviso to rule 7(1)(a) allows him to claim gratuity after one year of service under the contract; the company's HR should update its policy and its Form IV nomination format. Separately, when a loader dies in a warehouse accident, the company deposits Fifteen thousand rupees or the higher Central amount within Forty Eight hours of the incident with the competent authority.
Need help updating policies after the amendment?
The changes touch gratuity eligibility, nomination forms and the fatal-accident deposit. Our payroll compliance audit team can compare your HR policy and forms with the amended rules.
Key takeaways
- Fixed term gratuity eligibility moves from Five years to One year under the contract (rule 7(a), second proviso).
- The funeral deposit is Fifteen thousand rupees or the higher Central amount, within Forty Eight hours (rule 14).
- Review without a medical certificate is now rule 14A; the grounds are unchanged.
- Rule 70 is substituted; rule 79(1) moves four months to three months; rule 89A is added.
- The amendment is in force from its publication in the Official Gazette; the date is not printed in the notification text.
Read next
- Code on Social Security (Gujarat) Rules, 2023: gratuity nomination, application and recovery
- Code on Social Security (Gujarat) Rules, 2023: employees' compensation, notices and procedure
- Rule 33 of the Central Rules: application for gratuity and appeal
- Rules 57 to 59 of the Central Rules: interest, notice and claim for compensation
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.