Contract staffing in Gujarat

The staffing firm’s service charge is usually 6–12% of the worker’s gross salary, on top of actual salary, employer PF at 12% and ESIC at 3.25% where applicable, and gratuity provisioning. GST at 18% applies to the entire invoice value.

The staffing contractor is the direct employer and must deposit PF and ESIC. However, the principal employer remains liable if the contractor defaults, which is why monthly challan copies and the contractor’s licence should be conditions of your contract.

No statutory cap exists, but repeated renewals for permanent-nature work can attract claims of sham contracting before labour authorities. Many companies limit deployments to 11 months or a defined project and convert long-serving contract staff to direct employment.

Yes. Gujarat professional tax is deducted monthly by employers, with salaries up to the exemption threshold paying nil and those above it ₹200 per month, capped at ₹2,500 a year. Employers must register with the local municipal authority and file returns as prescribed.

The 2019 Act applies to shops and establishments employing 10 or more workers, who must register online through the labour department portal within 60 days of commencement. Smaller establishments are exempt from registration but must still follow basic conditions on hours and holidays.

Ahmedabad and Sanand for pharma, textiles, auto and IT; Surat and Hazira for textiles, diamonds and petrochemicals; Vadodara, Ankleshwar and Dahej for chemicals and engineering; Rajkot and Morbi for engineering, auto components and ceramics; Gandhinagar for finance and IT.