Gujarat payroll: professional tax, LWF and state rules
Last reviewed: 24 Sep 2026 · Author: NeevHR team
Gujarat levies professional tax of ₹200 a month on salaries above ₹12,000, with no February top-up. Labour Welfare Fund is half-yearly, deducted from June and December wages.
Professional Tax in Gujarat
Professional tax in Gujarat is levied under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976. It is collected by the municipal corporation, municipality or district panchayat for its area, and by the Commercial Tax Department elsewhere, so a city employer usually deals with the municipal corporation's PT department.
The salary slab has been flat since 1 April 2022: nothing up to ₹12,000 a month and ₹200 a month above it. There is no gender slab and no higher February deduction, so the maximum is ₹2,400 a year.
| Monthly salary | PT per month |
|---|---|
| Up to ₹12,000 | Nil |
| More than ₹12,000 | ₹200 |
| Item | Detail |
|---|---|
| Employer registration | Registration Certificate (RC), needed even for one employee; a separate RC for each branch |
| Entity enrolment | Enrolment Certificate (EC) for companies, firms and professionals, with an annual tax |
| Payment, 20 or more employees | Monthly, by the 15th of the following month, with Form 5 |
| Payment, fewer than 20 employees | Quarterly, by the 15th after the quarter, with an annual return |
Labour Welfare Fund in Gujarat
Gujarat's Labour Welfare Fund is collected under the Gujarat Labour Welfare Fund Act, 1953 for employees on the register in June and December. The employer deducts the employee share from June and December wages and pays both shares online to the Gujarat Labour Welfare Board.
The commonly applied rates are ₹6 per employee and ₹12 per employer each half-year. The Act allows the employee rate to be raised to ₹6 by notification; confirm the current rate with the Board.
| Item | Detail |
|---|---|
| Contribution | ₹6 employee, ₹12 employer, per half-year |
| Deduction months | June and December |
| Due dates | Before 15 July and 15 January |
| Payment | Online only since 1 July 2022 |
Minimum wages in Gujarat
Minimum wages are fixed per scheduled employment by zone and skill, plus a Special Allowance revised every six months, for 1 April to 30 September and 1 October to 31 March.
The Labour Commissioner's notice for 1 April to 30 September 2026 sets the Special Allowance at ₹60.50 a day for most scheduled employments and ₹146 a day for six employments including agriculture, garments and brick manufacturing. A new revision is due from 1 October 2026; check the Labour Commissioner's website for current rates.
Shops and establishments and other considerations
- Gujarat Shops and Establishments Act, 2019, as amended with effect from 16 December 2025: the Act now applies to establishments with 20 or more workers, the working day is up to 10 hours and overtime is capped at 144 hours a quarter, paid at twice the ordinary rate.
- Women may work between 9 pm and 6 am with consent and prescribed safeguards, including transport and protection from sexual harassment.
- Do not copy the February ₹300 rule used by Maharashtra and Karnataka; Gujarat has none.
Running Gujarat payroll in NeevHR
- PT and LWF follow each employee's work location on the effective-dated record.
- State slab and LWF tables are configurable settings, so a rate change is a settings update.
- PT and LWF challan data is produced from the published payroll run.
- Gujarat's flat ₹200 monthly PT and half-yearly June and December LWF are supported cadences.