Telangana payroll: professional tax, LWF and state rules

Professional Tax in Telangana

Professional tax is levied under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. Employers hold a Certificate of Registration to deduct PT from employees and a separate Certificate of Enrolment for the entity's own tax, and file a monthly return in Form V with the challan through the state's PT portal.

The monthly slab has no special February amount, so the maximum is ₹2,400 a year. Unpaid tax carries interest of 2% a month.

Labour Welfare Fund in Telangana

Under the Telangana Labour Welfare Fund Act, 1987, the employee contributes ₹2 and the employer ₹5 per employee each year, for employees on the register on 31 December, deducted from December wages. Payment is commonly made with the annual return by 31 January; confirm the date with the Labour Welfare Board.

The Act covers factories, motor transport undertakings and establishments employing 20 or more persons, and excludes managerial staff, apprentices and part-time workers.

Minimum wages in Telangana

Minimum wages are notified for 74 scheduled employments, some divided into zones, with a variable dearness allowance revised every six months for 1 April to 30 September and 1 October to 31 March. Current tables are published on the Labour Department's minimum rates of wages page.

Shops and establishments and other considerations

• Telangana Shops and Establishments Act, 1988: wages must be paid before the fifth day after the wage period ends, and overtime is paid at twice the ordinary rate.
• The Act provides 15 days of leave with wages after 240 days of service, accumulating to 60 days, plus sick and casual leave of up to 12 days each.