Notification Record & Forms
Notification details and the forms every employer needs, in one place.
- Issuing Authority
- Labour and Employment Department, Sachivalaya, Gandhinagar, Government of Gujarat
- Notified
- Notification No. KHR/2021/128/LVD/10/2020/555709/M(2) dated 5th October 2021, Gujarat Government Gazette, Extraordinary, Part I-L
- Objection Window
- Draft rules published on 31st March 2021 (Notification No. KHR/2021/29/LVD/10/2020/555709/M(2)); objections and suggestions invited for 45 days from that publication date
- Legal Basis
- Section 67 of the Code on Wages, 2019 (29 of 2019), read with Section 24 of the General Clauses Act, 1897
- Supersedes
- 7 earlier Payment of Wages and Minimum Wages laws in Gujarat, listed in full under "Old Law vs New Law" below
- Current Status
- In force; no repeal or amendment notification found as of this date
Gujarat notified the Code on Wages (Gujarat) Rules, 2021 on 5th October 2021, through the Labour and Employment Department, Sachivalaya, Gandhinagar. This rule puts the Code on Wages, 2019 into practice across the state, covering minimum wages, wage slips, deductions, registers and dispute resolution.
The 7 Gujarat laws replaced by this rule are the Payment of Wages (Procedure) Rules, 1937; the Gujarat Payment of Wages Rules, 1963; the Gujarat Payment of Wages (Unclaimed Amounts) Rules, 1963; the Gujarat Payment of Wages (Deductions for National Defence Fund and Defence Savings Scheme) Rules, 1964; the Payment of Wages (Manner of Recovery of Excess Deductions) Rules, 1967; the Gujarat Minimum Wages Rules, 1961; and the Ease of Compliance to Maintain Registers under Various Labour Laws (Gujarat) Rules, 2017, to the extent it was framed under Section 26 of the Payment of Wages Act, 1948. The Factories Act, 1948, the Gujarat Shops and Establishment Act, 2019, and the Trade Unions Act, 1926 or Industrial Relations Code, 2020 stay untouched and continue to apply alongside this rule.
Forms under the State Rules
Due Dates
Compliance deadlines, forms and how often each one recurs.
| Compliance | Form | Compliance Frequency | Due Date |
|---|---|---|---|
| Issue wage slip to employee | Form V | Recurring, every wage payment | Within 5 working days of payment of wages (Rule 43) |
| Intimate deduction made under Section 20 proviso to the Inspector-cum-Facilitator | Written intimation, no prescribed form | Event based, on every such deduction | Within 10 days from the date of deduction (Rule 15(1)) |
| Intimate employee about deduction for damage or loss under Section 21 | Written intimation, no prescribed form | Event based, on every such deduction | Within 15 days from the date of deduction (Rule 16(ii)) |
| Deposit unpaid wages of a deceased or untraceable employee with the Labour Welfare Commissioner | No prescribed form | Event based, on non-payment | If unpaid for 3 months from the due date (Rule 37) |
| Disburse deposited dues to the nominee after identity verification | No prescribed form | Event based, after deposit | Within 2 months of deposit (Rule 37) |
| Deposit other undisbursed dues (no nomination or any other reason) | No prescribed form | Event based, on non-payment | Before the 15th day after expiry of 6 months from the due date (Rule 38(1)) |
| Revise dearness allowance | Not applicable | Half yearly | Before 1st April and before 1st October every year (Rule 5) |
| Send notice of a State Advisory Board meeting | Not applicable | Event based, per meeting | At least 15 days before the meeting; 7 days for an emergent meeting (Rule 22) |
| Call a Board meeting on member requisition | Not applicable | Event based, on requisition | Within 30 days of receiving the written requisition (Rule 21) |
| Decide treatment of undisbursed dues unclaimed after deposit | Not applicable | One time, if still unclaimed | State Government decides after 7 years of deposit (Rule 39(4)) |
Key Provisions
What changed under the Code, and what it means for payroll.
Old Law vs. New Law
What employers followed before, against what applies now — point matched against point.
| On this point | Before — earlier law | Now — the new Code |
|---|---|---|
| Governing law | Separate laws: Payment of Wages Act, 1936, Minimum Wages Act, 1948, and 7 different Gujarat rules made under them | One law, the Code on Wages, 2019, backed by a single Code on Wages (Gujarat) Rules, 2021 |
| Number of rules to track | 7 separate Gujarat rules and notifications, each with its own format and procedure | 1 unified rule covering wages, deductions, registers, forms and disputes |
| Coverage of employees | Minimum Wages Act applied only to employments listed in the Schedule; many workers stayed outside its protection | Code on Wages applies to every employee in every establishment in Gujarat, organised or unorganised |
| Minimum wage fixation criteria | States used their own varying formulas, with no single common standard across India | One uniform formula under Rule 3, based on 3 consumption units, 2700 calories a day, and 66 metres of cloth a year |
| Wage period | No single fixed wage period across the old rules | Month fixed as the longer wage period for minimum wages under Rule 10 |
| Cap on wage deductions | Deduction limits varied across the old Payment of Wages Rules | Uniform 50% cap on deductions and advance recovery under Rule 11 and Rule 17 |
| Wage slip | Not mandatory in the same standard format under the old Payment of Wages Rules | Mandatory Form V wage slip within 5 working days of payment, under Rule 43 |
| Registers maintained by employer | Multiple registers under different rules, mostly on paper | Single Form I and Form IV, which can both be maintained electronically |
| Authority for wage claims | Authority appointed separately under the Payment of Wages Act, with its own procedure | Assistant Commissioner of Labour (State), appointed under Section 45 of the single Code |
| Appeal process | Appeal routes differed across the Payment of Wages Act and Minimum Wages Act | One appeal route under Section 49, filed in Form III before the Appellate Authority |
| Compounding of offences | Compounding provisions were not uniform across the old laws | Uniform compounding at 50% of the maximum fine, through Form VI, under Rule 44 |
| Advisory board on wages | Separate wage boards or committees under the old Minimum Wages Act structure | One State Advisory Board with fixed composition, quorum and term under Rules 19, 24 and 30 |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- Extends to the whole State of Gujarat, in force from the date of commencement of the Code on Wages, 2019 (Rule 1(2), 1(3))
- Every establishment in Gujarat covered under the Code on Wages, 2019, across all wage zones, metropolitan, non-metropolitan and rural (Rule 4(1))
- Every employee under the normal working day, rest day and wage payment rules (Rule 6, 7, 43)
- Employers engaging workers through a contractor, directly liable for timely wages and minimum bonus (Rule 45, 46)
Exempted / special treatment
- Agricultural employment gets modified working hour rules, as determined by the State Government from time to time (Rule 6(3))
- Employees in emergency work, intermittent employment, or technically constrained work get relaxed hours, spread over up to 16 hours, with actual work capped at 9 hours a day (Rule 9)
- The Factories Act, 1948 and the Gujarat Shops and Establishment Act, 2019 continue to apply on their own; these Rules do not override them (Rule 6(4))
- Working journalists and sales promotion employees have their minimum wage fixation referred separately to the State Advisory Board (Rule 20)
Frequently Asked Questions
Answers to what employers ask us most about this rule.
What is the Code on Wages (Gujarat) Rules, 2021?
The state-level rulebook Gujarat notified on 5th October 2021 to implement the Code on Wages, 2019, covering minimum wages, payment of wages, registers, forms and dispute resolution.
Which older Gujarat labour laws does this rule replace?
It replaces the Payment of Wages (Procedure) Rules 1937, the Gujarat Payment of Wages Rules 1963, the Gujarat Payment of Wages (Unclaimed Amounts) Rules 1963, the 1964 Deductions Rules, the 1967 Recovery Rules, the Gujarat Minimum Wages Rules 1961, and part of the 2017 Ease of Compliance Rules.
Which establishments must follow these Rules?
Every establishment in Gujarat covered under the Code on Wages, 2019, including establishments engaging workers through contractors.
How is the minimum wage calculated?
On a day-rate basis using 3 adult consumption units per family, 2700 calories per day per unit, 66 metres of cloth per year, housing at 10% of food and clothing cost, fuel and miscellaneous at 20%, and education/medical/contingency at 25% of the minimum wage.
How do I convert the daily minimum wage into an hourly or monthly rate?
Divide the daily rate by 8 for the hourly rate. Multiply the daily rate by 26 for the monthly rate. Round up a fraction of half or more; drop anything below half.
What are the three wage zones in Gujarat?
Metropolitan area (population 40 lakh or more), non-metropolitan area (population 10 to 40 lakh), and rural area, which covers everything outside these two.
What is a normal working day?
8 hours of work with rest intervals totalling not more than 1 hour, and a spread-over that cannot exceed 12 hours in a day.
Can an employee be denied a weekly rest day?
No. An employee who has worked 6 continuous days for the same employer is entitled to a rest day, ordinarily Sunday, though the employer can fix a different day for a class of employees.
How many consecutive days can an employee work without a rest day?
Not more than 10 consecutive days, even where a substituted rest day is arranged.
How does the rest day work for night shift employees?
If a shift extends past midnight, the rest day is counted as 24 consecutive hours from the time the shift ends, and hours worked after midnight count toward the previous day.
What is the wage period for minimum wage purposes?
One month. Rule 10 fixes the month as the longer wage period.
Is there a cap on wage deductions in a single month?
Yes. Total authorised deductions cannot exceed 50% of the employee's wages in a wage period. Any excess is recovered in later periods, still within the 50% monthly cap.
Is there a cap on recovery of an advance given to an employee?
Yes. Recovery instalments in a wage period cannot exceed 50% of the employee's wages for that period, and the recovery details must be recorded in Form I.
Who is the authority for wage claims and disputes in Gujarat?
The Assistant Commissioner of Labour (State) having jurisdiction over the employee's place of work.
How does an employee file a wage claim?
By filing a single application in Form II under Section 45(5) of the Code, before the authority appointed under Section 45(1), either directly, through a registered trade union, or through the Inspector-cum-Facilitator.
How does an employer or employee appeal an order?
By filing Form III under Section 49(1) before the Appellate Authority having jurisdiction, along with the supporting documents listed in that form.
When must an employer issue a wage slip?
Within 5 working days of paying wages, using Form V, either electronically or in physical form.
What details go into the Employee Register?
Form IV captures employee code, name, gender, date of birth, education, date of joining, designation, skill category, Aadhaar, PAN, UAN, ESIC number, bank account details and exit details.
What must be recorded in the Register of Wages, Overtime, Fine and Deduction?
Form I records wage rates, days worked, overtime, fines imposed, reasons for fines, deductions for damage or loss, and the date of payment, for every employee.
What happens to wages of an employee who has died or cannot be traced?
If the amount stays unpaid for 3 months after it became due, the employer deposits it with the Labour Welfare Commissioner or Assistant Commissioner of Labour, who disburses it to the verified nominee within 2 months of deposit.
What if wages remain undisbursed for other reasons, like no nomination on file?
The employer must deposit the amount with the Labour Welfare Commissioner or Assistant Commissioner of Labour before the 15th day after the 6-month period from the due date expires.
What happens to undisbursed dues that stay unclaimed for years?
If unclaimed for 7 years after deposit, the State Government directs how the amount is dealt with.
How often is dearness allowance revised?
The endeavour is to revise it twice a year, computed before 1st April and before 1st October.
Who is liable if a contractor does not pay wages on time?
The principal employer must pay the contractor before the wage due date, so wages reach employees on time under Section 17. Delay on the principal employer's part defeats this safeguard.
Who pays minimum bonus if a contractor defaults?
The principal employer, once the employees or a registered trade union give written information of the default and the employer confirms it.
How is an offence compounded under these Rules?
An accused person applies in Form VI to the notified Gazetted Officer. If the offence is compoundable and the accused agrees, it is compounded for 50% of the maximum fine set under the Code on Wages, 2019.
Do these Rules fix the actual penalty amount for violations?
No. The Gujarat Rules only set out the fine-approval and compounding procedure. The penalty amounts themselves come from Sections 54 to 56 of the Code on Wages, 2019.
Who sits on the Gujarat State Advisory Board under the Code on Wages?
4 employer representatives, 4 employee representatives, and independent members consisting of the Chairperson, one MLA, two labour and wages professionals, and one former Industrial Tribunal presiding officer. One-third of the Board must be women.
Does the Factories Act or Shops and Establishment Act still apply in Gujarat?
Yes. Rule 6(4) clarifies that the working-hour provisions in these Rules do not override the Factories Act, 1948 or the Gujarat Shops and Establishment Act, 2019.
Can an employer maintain these registers electronically?
Yes. Form I and Form IV can both be maintained electronically, and the signature or attendance columns are then not required.
Sources
Where every fact on this page comes from.
- → Gujarat Government Notification: No. KHR/2021/128/LVD/10/2020/555709/M(2), Labour and Employment Department, Government of Gujarat, dated 5th October 2021 — Code on Wages (Gujarat) Rules, 2021 (Gujarat Government Gazette, Extraordinary, Part I-L) (official)
- → Central Act: The Code on Wages, 2019 (Act No. 29 of 2019), Ministry of Labour and Employment, Government of India (official)
For informational purposes only — not legal advice. State rules referenced here are subject to change on final notification. Verify current status with our compliance team before acting.