Code on Wages Gujarat 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 Wages (Gujarat) Rules, 2021 are the rules by which the State of Gujarat applies the Code on Wages, 2019 to the establishments for which the State Government is the appropriate Government. This article covers the notification, the commencement clause, the earlier rules the notification supersedes, the three area categories and the method the rules print for fixing the minimum rate of wages.
The rules are the Code on Wages (Gujarat) Rules, 2021, as notified on 5 October 2021 (No. KHR/2021/128/LVD/10/2020/555709/M(2)). Rule 1(3) says they come into force from the date of commencement of the Code on Wages, 2019. They extend to the State of Gujarat and supersede the old Gujarat wage rules named in the notification. Rules 3 to 5 fix the method for minimum wages; the rules themselves print no rupee rate.
Later amendments and State notifications under these rules should be checked in the State Gazette.
The notification and the commencement clause
The notification is dated 5 October 2021 and was issued by the Labour and Employment Department, Gandhinagar. It recites that draft rules were published under section 67(1) of the Code on Wages, 2019 on 31 March 2021, that objections and suggestions were invited within forty-five days, and that those received were considered. The rules are then made under section 67 of the Code, read with section 24 of the General Clauses Act, 1897.
Rule 1(3) reads: "They shall come into force from the date of commencement of the code on wages, 2019." The four Labour Codes were brought into force from 21 November 2025, as our post on sections 1 and 69 of the Code on Wages explains. The Gujarat rules therefore take their start from that commencement; this article asserts no other date.
For the Central rule on short title, commencement and definitions, see rules 1 and 2 of the Central Rules. What Gujarat adds is the list of earlier rules it replaces.
What the notification supersedes
The Gujarat rules are made in supersession of the following, as printed in the notification:
| Earlier rules superseded |
|---|
| The Payment of Wages (Procedure) Rules, 1937 |
| The Gujarat Payment of Wages Rules, 1963 |
| The Gujarat Payment of Wages (Unclaimed Amounts) Rules, 1963 |
| The Gujarat Payment of Wages Deductions for National Defence Fund and Defence Savings Scheme) Rules, 1964 |
| The Payment of Wages (Manner of recovery of excess deductions) Rules, 1967 |
| The Gujarat Minimum Wages Rules, 1961 |
| The Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017, to the extent made under section 26 of the Payment of Wages Act, 1948 |
An employer in Gujarat who still keeps the old minimum-wage or payment-of-wages registers by habit should check them against the new rules (a labour law compliance review can do this), which are covered in our article on registers, wage slip and forms.
The three area categories (rules 2 and 4)
Rule 2 defines the areas used to fix minimum wages:
- Metropolitan area: a compact area having a population of forty lakhs or more, comprised in one or more districts.
- Non-metropolitan area: a compact area having a population of more than ten lakhs but less than forty lakhs.
- Rural area: an area which is neither of the above.
"Population" means the population at the last preceding census of which the relevant figures have been published. Rule 4(1) requires the State Government, while fixing the minimum rate of wages under section 6, to divide the geographical area concerned into these three categories.
Skill categories and the technical committee (rule 4)
Rule 4(2) requires the State Government to constitute a technical committee under section 8(1)(a) to advise on skill categorisation. As printed, it consists of:
- the Commissioner of Labour / Director of Labour as Chairperson;
- the Joint Secretary / Deputy Secretary in the Labour and Employment Department dealing with wages, as Member;
- the Director of Employment and Training, as Member;
- four representatives, two each from employers and employees in wage determination, nominated by the State Government, as Members; and
- the Assistant Commissioner of Labour, Government of Gujarat, as Member Secretary.
On that committee's advice, the State Government categorises occupations into four categories: unskilled, semi-skilled, skilled and highly skilled (rule 4(3)). The committee must take into account, to the extent possible, the national classification of occupation or the national skills qualification framework (rule 4(4)). Rule 2 defines each of the four occupation types in words an employer can use when placing a job in a category.
How the minimum rate of wages is calculated (rule 3)
Rule 3(1) provides that the minimum rate of wages is fixed on a day basis, keeping in view these criteria:
| Criterion | As printed in rule 3(1) |
|---|---|
| Standard working class family | A spouse and two children apart from the earning worker, equal to three adult consumption units |
| Food | A net intake of 2700 calories per day per consumption unit |
| Clothing | 66 metres of cloth per year per standard working class family |
| Housing rent | 10 per cent of food and clothing expenditure |
| Fuel, electricity and other items | 20 per cent of the minimum wage |
| Education, medical, recreation and contingencies | 25 per cent of minimum wages |
Under rule 3(2), once the rate for a day is fixed, it is divided by eight to fix the rate for an hour and multiplied by twenty-six to fix the rate for a month. In that division and multiplication, factors of one-half and more than one-half are rounded to the next figure and factors less than one-half are ignored.
Revision of dearness allowance (rule 5)
Rule 5 says endeavour shall be made so that the cost of living allowance and the cash value of the concession in respect of essential commodities at concession rate are computed once before 1 April and then before 1 October in every year, to revise the dearness allowance payable on the minimum wages. A proviso protects a higher dearness allowance that was payable immediately before a notification under section 7 fixing or revising the minimum rates, under the Code or any law, award or agreement then in force.
For the Central position on the same subject, see rule 3 of the Central Rules. Our short post on minimum wages in Gujarat is the place to look for notified rates; the Gujarat rules print the method, not the rates.
A worked example
Shreeji Plastics Pvt Ltd runs a unit near Vadodara and engages a helper whose occupation the State has placed in the semi-skilled category. The employer cannot work out the minimum monthly wage from rule 3 alone: the rule gives the method for the State Government to fix the rate, and the figure comes from the State's notification. What the employer can check from the rules is how the notified daily rate converts: divided by eight for an hour, multiplied by twenty-six for a month, with half-figures rounded up. If the notified rate has been revised for dearness allowance, rule 5 says the higher earlier rate is not lost.
Need help with Gujarat wage compliance?
If your payroll was built on the old Gujarat wage rules, a review against the 2021 rules can show which registers and slips need to change. Our labour law compliance team can map your establishment to the correct rule set and check what is notified for your area.
Key takeaways
- The rules are the Code on Wages (Gujarat) Rules, 2021, as notified on 5 October 2021; rule 1(3) ties commencement to the commencement of the Code.
- They extend to the State of Gujarat and supersede seven earlier sets of rules.
- Rule 2 defines metropolitan, non-metropolitan and rural areas by population.
- Rule 3 sets the method for the minimum rate; rule 4 sets up a technical committee and four skill categories.
- Rule 5 provides for revising dearness allowance before 1 April and before 1 October each year.
Read next
- Code on Wages (Gujarat) Rules, 2021: working hours, weekly rest day, night shift and overtime
- Code on Wages (Gujarat) Rules, 2021: registers, wage slip, forms and returns
- Rule 3 of the Central Rules: manner of calculating minimum rate of wages
- Sections 67 and 68 of the Code on Wages, 2019: power to make rules
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.