Updated : August 22, 2024Minimum Wages in Gujarat Effective 1st April 2024
Overview : The parliament of India enacted the Minimum Wages Act of 1948, aiming to secure the economic rights of workers by defining the minimum pay for different classes of workers. The Act addresses the increasing concerns of wage discrimination among employees. Workers are classified into categories like skilled, semi-skilled, and unskilled, with separate bare minimum wage rates for every class.
The legislation is significant for both employees and employers. Effective April 1, 2024, the Labor Department, Gujarat, has updated the minimum wage rates for different zones and classes. The meaning of the zone below is followed by the table showing the minimum wages for Gujarat.
- Zone-I: Comprises areas under the jurisdiction of Municipal Corporations and Municipalities, as constituted under the Gujarat Municipal Corporation Act-1949 and the Gujarat Municipalities Act 1963, respectively. It also includes areas under the jurisdiction of Urban Development Authorities.
- Zone-II: Encompasses all areas in Gujarat that are not included in Zone-I.
Understanding Minimum Wages
Minimum wages are the lowest remuneration the employer is legally obligated to pay the employees. Employers must be aware of minimum wages to ensure compliance with labor regulations and guarantee fair and just employee compensation. Minimum wages need to be checked on the basis of monthly and daily wage payments to the workers. For the purpose of daily wage calculation, the number of days in the month is calculated at 26 days.
The employer should be careful when determining the salary structure for its workers, as the total wages paid to the employees are not considered for the purpose of meeting the minimum wage requirement under the Law. The two components of the salaries, Basic Pay and the Variable Dearness Allowance (VDA), must be equal to or more than the prescribed amount based on the particular employment class.
Table of Minimum Wages for Gujarat
| Zone | Basic Per Day | VDA Per Day | Total Per Day | Total Per Month |
|---|---|---|---|---|
| Zone I | 452 | 35 | 487 | 12662 |
| Zone II | 441 | 35 | 476 | 12376 |
Semi-Skilled Workers in Gujarat - Minimum Wages
| Zone | Basic Per Day | VDA Per Day | Total Per Day | Total Per Month |
|---|---|---|---|---|
| Zone I | 462 | 35 | 497 | 12922 |
| Zone II | 452 | 35 | 487 | 12662 |
Skilled Workers in Gujarat - Minimum Wages
| Zone | Basic Per Day | VDA Per Day | Total Per Day | Total Per Month |
|---|---|---|---|---|
| Zone I | 474 | 35 | 509 | 13234 |
| Zone II | 462 | 35 | 497 | 12922 |
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