Gujarat High Court orders minimum wage payment with 6% interest for fixed salary employee

Gujarat High Court has ordered the state finance department to pay minimum wages to fixed salary employees working in district panchayat, along with 6% interest on the pending amount. The court also directed that payment must be completed by June 30, 2026.

The decision brings relief to employees who were working full-time for years on a very low fixed salary of ₹2,500 per month. These employees had filed a petition in the high court, saying that they should receive the minimum pay scale as per a state government circular issued July 16, 2019.

The employee argued that even though they were labeled as fixed salary workers, they were performing regular full-time duties, therefore they should not be denied fair wages. They also challenged a previous order issued by the District Development Officer on December 20, 2022, which had rejected their demand.

During the hearing, the high court observed that the petitioners fall under Category-3, where employees work 29 days in a month with only 1 day of artificial break. The court said this practice is not legally acceptable and such employees cannot be denied minimum wage benefits.

The judgement is expected to benefit several similarly placed fixed salary employees across the state.