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The Gujarat Government has recently revised the minimum wages for Gujarat workers. It came into effect on 1st October 2023. Minimum Wages in Gujarat are distributed between skilled, unskilled, and semi-unskilled workers within Zone I and Zone II. Zone I cover the areas under the municipal corporation of Gujarat. On the other hand, the selected areas of Zone I, whose population is more than 1 lakh, are considered Zone II. Let’s look at the bifurcation of minimum wages zone-wise and skill-wise in Gujarat.
All India consumer price Index Number of the period from January to June 2023 which is 385.96, an increase of 7.38 points. Hereby the dearness allowances are declared have been effected by 1 oct 2023.
| SCHEDULED EMPLOYMENT | BASIC Pay (PER DAY) | Varisble Dearness Allowances (VDA) (PER DAY) | TOTAL (PER DAY) | TOTAL (PER MONTH) |
| Zone I (Unskilled) | Rs. 276.00 | Rs. 87.30 | Rs. 363.00 | Rs. 9445.80 |
| Zone I (Semi-skilled) | Rs. 284.00 | Rs. 87.30 | Rs. 371.00 | Rs. 9653.80 |
| Zone I (Skilled) | Rs. 293.00 | Rs. 87.30 | Rs. 380.30 | Rs. 9887.80 |
| Zone II (Unskilled) | Rs.268.00 | Rs. 87.30 | Rs. 355.30 | Rs. 9237.80 |
| Zone II (Semi-skilled) | Rs. 276.00 | Rs. 87.30 | Rs. 363.30 | Rs. 9445.80 |
| Zone II (Skilled) | Rs. 284.00 | Rs. 87.30 | Rs. 371.30 | Rs. 9653.80 |
If you are an employers, and thinking of establishment a wage structure for the company workers, Lets go through the list and and tailor the compensation plans for the workers of all categories.
| Component | Formula | Description |
| Basic+ DA | Basic + Dearness Allowance is CTC *50% or Minimum Wages *12 | The sum of Basic and Dearness allowance is 50% of cost to company or The sum of Basic and Dearness Allowance is 12 times of Minimum Wages |
| HRA | HRA is the 50% of Basic Salary | House rent Allowance is 50 % of Basic Salary |
| LTA | Basic*5 % | Gross Salary is 5% of Basic Salary |
| Gross Salary | Gross Salary Sum of Basic + DA + HRA + LTA + SP | Gross Salary is the sum of Basic, DA, HRA, LTA, SP |
| Speicial Allowances | Gross Salary – Allowance | Speicial Allowance is substraction of a Allowance from Gross Salary |
| Monthly Bonus | 8.35% of Basic | Monthly Bonus is 8.35% of Basic Salary |
| PF(Employee) | 12% of Baisic | Provident Fund (Employee) is 12% of Basic Salary |
| PF(Employer) | 12% of Baisc Salary | Provident Fund (Employer) is 12% of Basic Salary |
| ESI (Employee) | 0.75% of Gross Salary | Employees’ State Insurance (Employee) is 0.75% of Gross Salary |
| ESI (Employer) | 3.25% of Gross Salary | Employees’ State Insurance (Employer) is 3.25% of Gross Salary |
In conclusion, as per the Indian Constitution, Minimum Wages ensure a sustainable lifestyle for workers. The Minimum wages in Gujarat are distributed between skilled, unskilled, and semi-unskilled workers within Zone I and Zone II. The rate has been effective from 1 oct, 2023. The aim of revising the Minimum Wages is to support the base level of employment and ensure viable continuous improvement from unskilled to skilled workers.
Explore the state-wise minimum wage rates in India.
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