Gujarat Minimum Wages April 2026 — Zone Wise Rates, VDA and Compliance Guide
The Government of Gujarat has revised minimum wages effective 01 April 2026 to 30 September 2026 for 46 scheduled employments across Zone I and Zone II. Every employer in Gujarat must implement these revised rates from April 2026 payroll onwards. Non-compliance can result in penalties and imprisonment up to 6 months under Section 22-A of the Minimum Wages Act, 1948.
This free downloadable PDF covers all zone-wise rates, VDA breakdown, worker classification guide, and key compliance points — everything your HR and payroll team needs in one place.
What Changed from October 2025 to April 2026
The Variable Dearness Allowance (VDA) has been revised upward by ₹12 per day — from ₹48.50 per day to ₹60.50 per day for Category 1 employments. This results in a net monthly increase of ₹312 per employee for all scheduled employments in both Zone I and Zone II.
The basic wage component remains unchanged since March 2023.
Zone I and Zone II — Which Applies to Your Business
Zone I covers all Municipal Corporation limits and Urban Development Authority areas — Ahmedabad, Surat, Vadodara, Rajkot, Gandhinagar, Bhavnagar, Jamnagar, Junagadh and surrounding areas within 10 km radius.
Zone II covers all other areas in Gujarat not included in Zone I — smaller towns, semi-urban, and rural areas.
Minimum Wage Rates — April 2026 to September 2026
Category 1 — Shops, Commercial Establishments, Offices, IT Companies:
→ Unskilled Zone I — ₹512.50 per day — ₹13,325 per month
→ Unskilled Zone II — ₹501.50 per day — ₹13,039 per month
→ Semi-Skilled Zone I — ₹522.50 per day — ₹13,585 per month
→ Semi-Skilled Zone II — ₹512.50 per day — ₹13,325 per month
→ Skilled Zone I — ₹534.50 per day — ₹13,897 per month
→ Skilled Zone II — ₹523.50 per day — ₹13,611 per month
Category 2 — Heavy Industries (Sugar, Cement, Chemical, Petroleum, Engineering):
VDA is higher at ₹145 per day for Category 2 industries. Monthly wages range from ₹15,236 to ₹16,094 depending on skill and zone.
VDA — Variable Dearness Allowance
→ Category 1 — ₹60.50 per day — approximately ₹1,573 per month
→ Category 2 — ₹145.00 per day — approximately ₹3,770 per month
→ VDA is revised every 6 months — next revision effective 01 October 2026
→ Basic and VDA must appear as separate line items on every payslip
Worker Classification — Unskilled, Semi-Skilled, Skilled
Unskilled — Physical tasks requiring no prior training. Examples: sweepers, helpers, loaders, material handlers, general cleaners.
Semi-Skilled — Routine work performed under supervision with some training. Examples: data entry operators, machine operators, junior technicians, security guards.
Skilled — Independent judgement and technical knowledge required. Examples: accountants, senior technicians, supervisors, mechanics, qualified professionals.
Misclassifying a semi-skilled or skilled worker as unskilled — even unintentionally — creates arrear liability and penalty exposure. Classify based on actual duties performed, not just the job title on the offer letter.
Key Compliance Points
→ Implement revised wages from April 2026 payroll — any delay must be corrected through arrears
→ Basic and VDA must show as separate line items on every payslip under Payment of Wages Act 1936
→ Contract workers and temporary staff must also receive minimum wages — no exemption
→ Non-compliance can result in penalties or imprisonment up to 6 months under Section 22-A
→ Next VDA revision due on 01 October 2026 — update payroll at that time
Download the free PDF below for a printable zone-wise rate card to keep at your desk or share with your payroll team.
Need help with minimum wage compliance or payroll structuring? Connect with verified HR and Payroll Consultants on BusinessBazar —
businessbazar.in/services/hr-consultant/ahmedabad
This free downloadable PDF covers all zone-wise rates, VDA breakdown, worker classification guide, and key compliance points — everything your HR and payroll team needs in one place.
What Changed from October 2025 to April 2026
The Variable Dearness Allowance (VDA) has been revised upward by ₹12 per day — from ₹48.50 per day to ₹60.50 per day for Category 1 employments. This results in a net monthly increase of ₹312 per employee for all scheduled employments in both Zone I and Zone II.
The basic wage component remains unchanged since March 2023.
Zone I and Zone II — Which Applies to Your Business
Zone I covers all Municipal Corporation limits and Urban Development Authority areas — Ahmedabad, Surat, Vadodara, Rajkot, Gandhinagar, Bhavnagar, Jamnagar, Junagadh and surrounding areas within 10 km radius.
Zone II covers all other areas in Gujarat not included in Zone I — smaller towns, semi-urban, and rural areas.
Minimum Wage Rates — April 2026 to September 2026
Category 1 — Shops, Commercial Establishments, Offices, IT Companies:
→ Unskilled Zone I — ₹512.50 per day — ₹13,325 per month
→ Unskilled Zone II — ₹501.50 per day — ₹13,039 per month
→ Semi-Skilled Zone I — ₹522.50 per day — ₹13,585 per month
→ Semi-Skilled Zone II — ₹512.50 per day — ₹13,325 per month
→ Skilled Zone I — ₹534.50 per day — ₹13,897 per month
→ Skilled Zone II — ₹523.50 per day — ₹13,611 per month
Category 2 — Heavy Industries (Sugar, Cement, Chemical, Petroleum, Engineering):
VDA is higher at ₹145 per day for Category 2 industries. Monthly wages range from ₹15,236 to ₹16,094 depending on skill and zone.
VDA — Variable Dearness Allowance
→ Category 1 — ₹60.50 per day — approximately ₹1,573 per month
→ Category 2 — ₹145.00 per day — approximately ₹3,770 per month
→ VDA is revised every 6 months — next revision effective 01 October 2026
→ Basic and VDA must appear as separate line items on every payslip
Worker Classification — Unskilled, Semi-Skilled, Skilled
Unskilled — Physical tasks requiring no prior training. Examples: sweepers, helpers, loaders, material handlers, general cleaners.
Semi-Skilled — Routine work performed under supervision with some training. Examples: data entry operators, machine operators, junior technicians, security guards.
Skilled — Independent judgement and technical knowledge required. Examples: accountants, senior technicians, supervisors, mechanics, qualified professionals.
Misclassifying a semi-skilled or skilled worker as unskilled — even unintentionally — creates arrear liability and penalty exposure. Classify based on actual duties performed, not just the job title on the offer letter.
Key Compliance Points
→ Implement revised wages from April 2026 payroll — any delay must be corrected through arrears
→ Basic and VDA must show as separate line items on every payslip under Payment of Wages Act 1936
→ Contract workers and temporary staff must also receive minimum wages — no exemption
→ Non-compliance can result in penalties or imprisonment up to 6 months under Section 22-A
→ Next VDA revision due on 01 October 2026 — update payroll at that time
Download the free PDF below for a printable zone-wise rate card to keep at your desk or share with your payroll team.
Need help with minimum wage compliance or payroll structuring? Connect with verified HR and Payroll Consultants on BusinessBazar —
businessbazar.in/services/hr-consultant/ahmedabad
businessbazar-gujarat-minimum-wages-april-2026.pdf
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This document and all content provided herein is for general informational and HR reference purposes only. Minimum wage rates are sourced from the Gujarat Labour and Employment Department notification effective 01 April 2026. While every effort has been made to ensure accuracy, wage rates and statutory requirements are subject to change by the Government of Gujarat. Always verify the current rates with the official government notification before implementation. BusinessBazar accepts no liability for any errors, omissions, or outdated information arising from the use of this document.
Need a verified Payroll or HR Compliance Consultant? Find one at businessbazar.in/services/hr-consultant/ahmedabad
Need a verified Payroll or HR Compliance Consultant? Find one at businessbazar.in/services/hr-consultant/ahmedabad