Payroll in Gujarat

Professional tax, labour welfare fund for employers in Gujarat. These are the figures Flowy's payroll uses: when an employee's work location is in Gujarat, these rules apply to them without anyone configuring them.

Professional tax

Deducted from salary each month, on the employee's monthly gross.

Monthly gross salaryProfessional tax a month
Up to ₹12,000Nil
Above ₹12,000₹200

No employee pays more than ₹2,500 in a year across all months.

Source: Gujarat notification GHN-35-PFT-2022-S.3(2)(10)-Th, 8 April 2022, in force from 1 April 2022.

Labour welfare fund

Due in June and December, from both the employee and the employer.

Monthly wageEmployeeEmployer
Any wage₹6₹12

Source: Gujarat Labour Welfare Fund Act 1953, s.6B.

Minimum wage

Flowy does not publish a Gujarat minimum wage schedule yet. Schedules are notified per industry, skill level and zone and revised during the year, so check the current notification from the Gujarat labour department.

Does your salary structure pass the labour codes?

State rules are half of it. The other half is whether PF and gratuity are calculated on the wages the codes define.

Run the free Payroll Health Check

Questions

What is the professional tax rate in Gujarat?

It depends on the employee's monthly gross salary: nil up to ₹12,000; ₹200 a month from ₹12,001. No employee pays more than ₹2,500 in a year.

Who pays professional tax in Gujarat?

Employees whose monthly gross salary is ₹12,001 or more. The employer deducts it from salary and pays it to the state. The state's Act exempts some groups of employees, so check those against your staff.

How much labour welfare fund is deducted from salary in Gujarat?

₹6 from the employee and ₹12 from the employer, in June and December.

Running payroll in more than one state?

Book a 10-minute Health Check. Bring three salary grades, anonymised, and the states you pay in.

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