Important Regulatory Update: Gujarat Minimum Wage Revision for Contract Labour

Gujarat Minimum Wages – Special Allowance Revision The Government of Gujarat has issued a notification revising the Special Allowance (Dearness Allowance) under the Minimum Wages Act, 1948 for the period 01 October 2026 to 31 March 2027. 🔹 Applicable to specified scheduled employments/industries in Gujarat 🔹 The revised Special Allowance is applicable during the above period. 🔹 Employers should review their wage structures and ensure that applicable minimum-wage payments are updated accordingly.

Published / issued: 05 Oct 2026Effective: 01 Oct 2026

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Jurisdiction: Gujarat
Effective from: 01 October 2026
Issued on: 05 October 2026
Status: Current
Reference: 1643_3_Circular105102026.pdf

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Notification number	1643_3_Circular105102026.pdf
Notification date	05 Oct 2026
Effective date / period	01 Oct 2026 – 31 Mar 2027
Jurisdiction	Gujarat
Issuing authority	Gujarat Labour department
Subject	Minimum Wages
Status	Current

Notification summary

What the notification says

📢 Important Regulatory Update: Gujarat Minimum Wage Revision for Contract Labour

The Office of the Labour Commissioner, Gujarat State (Gandhinagar), has issued a circular regarding minimum wages and special allowances for contract workers under the Contract Labour (Regulation and Abolition) Act, 1970 and Gujarat Rules, 1972.

Here are the key takeaways for employers, contractors, and HR professionals operating in Gujarat:

🔑 Key Highlights:

Scope & Applicability:
- Applies to contract workers engaged in employment not covered under the scheduled employments of the Minimum Wages Act, 1948.
- Mandated under Condition No. (6) of the licence issued under Rule 23 of the Gujarat Contract Labour Rules, 1972.
Revised Special Allowance (VDA):
- Allowance Rate: ₹72.50 per day
- Effective Period: October 01, 2026 to March 31, 2027 (6 Months)
- Note: This special allowance must be paid in addition to the base wage rates set on April 24, 2023.
Daily Basic Wage Structure (Effective since 24-04-2023):
- Skilled: Zone-1: ₹474.00 | Zone-2: ₹452.00
- Semi-Skilled: Zone-1: ₹452.00 | Zone-2: ₹452.00
- Unskilled: Zone-1: ₹452.00 | Zone-2: ₹441.00
Zone Classifications:

Zone-1: Areas under Municipal Corporations (GPMC Act, 1949), Municipalities (Gujarat Municipalities Act, 1963), and Urban Development Authorities.
Zone-2: All other remaining areas in the State of Gujarat.

The Office of the Labour Commissioner, Gujarat (Gandhinagar) issued Circular No. શ્ર.આ.૬/ટે.૩/૨૦૨૬/૫૨૫ regarding revised wage compliance for contract workers under Condition No. (6), Rule 23 of the Gujarat Contract Labour (Regulation and Abolition) Rules, 1972.

This update applies strictly to contract labourers employed in unscheduled employments (occupations not explicitly covered under the scheduled employments of the Minimum Wages Act, 1948).

💡 Compliance Action Item: All principal employers and contractors must update their payroll systems to incorporate the revised ₹72.50/day special allowance starting October 1, 2026, ensuring full statutory compliance.

#LabourLaw #MinimumWages #GujaratLabour #ContractLabour #PayrollCompliance #HRCompliance #LaborLawsIndia #HRIndia

Official gazette / notification

Open the controlling government source.

1643_3_Circular105102026.pdf · Gujarat Labour department