Back to Home ← All Registrations
Share Circular
DIVYARAJSINH ZALA & TEAM • ADVOCATE • LEGAL ADVISOR Labour Laws • Factory Act • PF • ESIC • Industrial Compliance
Rajkot, Gujarat • +91 99047 35167 • 99047 35167

GUJARAT MINIMUM WAGE UPDATE

Effective from 01st October 2026 to 31st March 2027
As per the latest notification, the Special Allowance / VDA has been revised from ₹60.50 to ₹72.50 per day for all categories under the Factory Act (Manufacturing).
Establishment / Company covered under Factory Act (Manufacturing Process)
Zone I Zone II
Class of Employee Basic (₹) Sp. Allow (₹) Per Day (₹) Monthly (₹) Class of Employee Basic (₹) Sp. Allow (₹) Per Day (₹) Monthly (₹)
Skilled 474.00 72.50 546.50 14,209.00 Skilled 462.00 72.50 534.50 13,897.00
Semi Skilled 462.00 72.50 534.50 13,897.00 Semi Skilled 452.00 72.50 524.50 13,637.00
Un Skilled 452.00 72.50 524.50 13,637.00 Un Skilled 441.00 72.50 513.50 13,351.00
Key Highlights
  • Special Allowance / VDA increased from ₹60.50 to ₹72.50 per day.
  • All categories (Skilled, Semi-Skilled, Unskilled) get ₹12 per day increase.
  • Monthly increase is ₹312 (calculated on standard 26 working days).
  • Basic wage remains unchanged. (Only Special Allowance / VDA has increased).
Zone I & Zone II – What's the Difference?
  • Zone I generally applies to areas within Rajkot Municipal Corporation limits and other major municipal corporation jurisdictions.
  • Zone II applies to industrial areas, GIDC estates, and establishments outside municipal corporation limits.
  • Please confirm the exact zone applicable to your factory / unit location as per the latest government gazette notification.
How Minimum Wage is Calculated?
Basic Wage + Special Allowance (VDA) = Minimum Wage
Example (Skilled – Zone I):
• Basic Wage ₹474.00
• Special Allowance (VDA) ₹72.50
• Total per Day ₹546.50
• Monthly (26 days) ₹14,209.00
Important Notes
  • These statutory rates are applicable only for the Factory / Manufacturing process under the Factories Act.
  • Ensure employee's actual gross wages are not less than the statutory minimum wage applicable for their category and zone.
  • This is not a straightforward "Basic Salary" amount. Salary structure, PF (12%), ESIC (3.25%), bonus and allowances should be structured as per compliance rules.
  • Default in minimum wage payment attracts penalty and legal action under the Minimum Wages Act, 1948.
Interactive Wage & Statutory Compliance Calculator
Revised Rates (Oct 2026 - Mar 2027)
Per Day (Basic + VDA) ₹546.50
Gross Monthly Wage ₹14,209.00
PF (12% Approx) ₹1,705.00
ESIC Employee (0.75%) ₹107.00
Estimated In-Hand ₹12,397.00

For any queries, statutory wage structuring, factory compliance audit or legal guidance, please feel free to contact:

Advocate Divyarajsinh Zala
Advocate • Legal Advisor of Labour Laws +91 99047 35167
Call at Our Office: +91 9904735167
Stay Informed  |  Stay Compliant  |  Grow Together