Gujarat Labour Law Compliance Guide for Employers, 2026 Edition
Gujarat labour law compliance covers state-specific rules, including Gujarat Professional Tax, the Gujarat Labour Welfare Fund, the Shops and Establishments Act, and central laws, for employers in Ahmedabad, Vadodara, Surat, Rajkot, and elsewhere across the state.
Quick answer: Employers in Gujarat follow the four Labour Codes plus state rules: Professional Tax of ₹200 a month on salaries above ₹12,000, a Labour Welfare Fund of ₹6 from the employee and ₹12 from the employer each half-year, and Shops and Establishments registration within 60 days of starting. PF and ESIC are due by the 15th of the following month.
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.
Here is what this means for Gujarat employers:
- The Codes now sit above many existing Gujarat state laws. Several state acts, including Shops & Establishments, Professional Tax administration, and the Labour Welfare Fund, continue to operate, but increasingly within the framework of the Codes.
- "Wages" is now defined uniformly: basic pay plus dearness allowance plus retaining allowance must add up to 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 their principal rules were notified in May 2026, but some Gujarat state-level rules are still being aligned. During this transition, employers should comply with both the existing Gujarat acts and the new Codes. Niyuk tracks both, so you stay covered.
A couple of practical notes: state rules under the four Codes are notified state by state, so what has changed in Gujarat will not always match what has changed elsewhere. For a worked example of what notified state rules actually change, see Niyuk's Karnataka Labour Law Compliance Guide. And if running payroll and attendance registers in-house isn't the best use of your team's time, a cloud HRMS with an attendance module can keep these records current automatically.
This guide is current as of June 2026. Labour Code rules are still evolving, and Niyuk updates these guides as new notifications are issued.
Gujarat-Specific Labour Laws
1. Gujarat Professional Tax
| Monthly Salary | PT per Month |
|---|---|
| Up to ₹12,000 | Nil |
| Above ₹12,000 | ₹200 |
Key points:
- Maximum annual PT is ₹2,400 per employee.
- Filing is monthly with the Gujarat PT department.
- Due date: end of the following month.
- Salaries up to ₹12,000 a month are exempt for all employees.
2. Gujarat Labour Welfare Fund (GLWF)
- Employee contribution: ₹6 per half-year.
- Employer contribution: ₹12 per half-year per employee.
- Due dates: 31 July (for January to June) and 31 January (for July to December).
3. Gujarat Shops and Establishments Act, 2019
The new Gujarat Act, replacing the 1948 version, brings in modernized provisions:
- Online registration within 60 days of commencement.
- Working hours: maximum 9 hours a day, 48 hours a week.
- Overtime: paid at twice the ordinary rate of wages.
- Women employees allowed to work night shifts, with safety provisions in place.
- Leave: earned leave per Gujarat's rules.
- A simplified registration process overall.
4. Gujarat Minimum Wages
Gujarat's minimum wages are categorized by zone and occupation. Zone I covers Ahmedabad, Vadodara, Surat, and Rajkot. Rates are revised periodically by the Gujarat Labour Department.
Central Laws Applicable in Gujarat
- EPF: 12% employer plus 12% employee, for establishments with 20 or more employees.
- ESIC: 3.25% employer plus 0.75% employee, for eligible employees.
- Payment of Bonus: 8.33% to 20%.
- Payment of Gratuity: payable after 5 years of continuous service, using the standard formula.
Gujarat Compliance Calendar
| Compliance | Frequency | Due Date |
|---|---|---|
| PF payment | Monthly | 15th of following month |
| ESIC payment | Monthly | 15th of following month |
| Gujarat PT | Monthly | End of following month |
| TDS payment | Monthly | 7th of following month |
| GLWF | Half-yearly | 31 July & 31 January |
Industries in Gujarat
- Pharmaceuticals: the Ahmedabad pharma corridor.
- Textiles: Surat's diamond and textile industry.
- Manufacturing: GIDC industrial estates across the state.
- IT and services: a growing presence in Ahmedabad and GIFT City.
- Chemicals and petrochemicals: the Vadodara chemical cluster.
- Ceramics: the Morbi ceramic hub.
Need help staying compliant?
Talk to Niyuk's HR experts about Gujarat PT, GLWF, Shops Act registration, and PF/ESIC compliance.
Talk to an HR ExpertGujarat Labour Compliance FAQs
What is the PT rate in Gujarat?
Gujarat PT is ₹200 a month for salaries above ₹12,000. Salaries up to ₹12,000 are exempt, for all employees.
What are the 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 31 July and 31 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 brings simplified online registration, modernized working-hour provisions, and a women's night-shift allowance.
How does Niyuk handle Gujarat compliance?
Niyuk manages Gujarat compliance end to end, including PT filing, GLWF contributions, Shops Act registration, PF and ESIC, TDS returns, and minimum wage compliance.