Delhi payroll: professional tax, LWF and state rules
Last reviewed: 24 Sep 2026 · Author: NeevHR team
Delhi has no professional tax. Employers deduct a small half-yearly Labour Welfare Fund contribution, and minimum wages are revised by Labour Department order, normally every April and October.
Professional Tax in Delhi
The National Capital Territory of Delhi does not levy professional tax, so nothing is deducted for employees whose place of work is Delhi. PT registration is needed only for employees working in states that levy it.
In the wider NCR, Haryana (Gurugram) and Uttar Pradesh (Noida) do not levy PT either.
Labour Welfare Fund in Delhi
Delhi applies the Bombay Labour Welfare Fund Act, 1953 as extended to the NCT. Each half-year the employee contributes ₹0.75, the employer ₹2.25 and the Government of Delhi ₹1.50, for employees on the register on 30 June and 31 December.
It covers establishments employing five or more persons, excluding managerial and supervisory staff drawing more than ₹2,500. The amounts are small, but the contribution is statutory.
| Item | Detail |
|---|---|
| Contribution | ₹0.75 employee, ₹2.25 employer, per half-year |
| Basis | Employees on the register on 30 June and 31 December |
| Due dates | Before 15 July and 15 January |
Minimum wages in Delhi
Delhi fixes minimum wages for unskilled, semi-skilled and skilled workers and for clerical and supervisory staff, normally revised on 1 April and 1 October. As of 24 September 2026 the latest order on the Labour Department's current minimum wage page is dated 15 April 2025, effective 1 April 2025.
A fake revision order dated October 2025 circulated widely. Rely only on orders published on the Labour Department's website.
Shops and establishments and other considerations
- Delhi Shops and Establishments (Amendment) Act, 2026, notified on 11 March 2026: the Act now applies to establishments with 20 or more employees, allows a 10-hour working day with a 12-hour spread-over and caps overtime at 144 hours a quarter. Women may work night shifts with written consent and safeguards such as secure transport.
Running Delhi payroll in NeevHR
- No PT is deducted for employees whose work location is Delhi.
- Half-yearly LWF in paise-level amounts is supported, with June and December deductions.
- Employees in other NCR states get their own state's rules from their work location.