Uttar Pradesh payroll: professional tax, LWF and state rules
Last reviewed: 24 Sep 2026 · Author: NeevHR team
Uttar Pradesh has no professional tax and no periodic Labour Welfare Fund deduction. Minimum wages were reset from 1 April 2026 into three area categories, with Noida and Ghaziabad in the highest.
Professional Tax in Uttar Pradesh
Uttar Pradesh does not levy professional tax, so no PT is deducted for employees working in the state.
Labour Welfare Fund in Uttar Pradesh
The Uttar Pradesh Labour Welfare Fund Act, 1965 builds its fund from fines, unpaid accumulations, grants and donations. There is no regular employee or employer contribution, so there is no LWF line on the payslip. Employers transfer fines and unpaid wages to the Board as the Act requires.
Minimum wages in Uttar Pradesh
A revision effective 1 April 2026 set minimum wages in three categories: Gautam Buddh Nagar and Ghaziabad; other municipal corporation districts; and all other districts, for unskilled, semi-skilled and skilled workers. A further dearness allowance revision is historically due in October; check the Labour Department for the current notification.
Shops and establishments and other considerations
- The Uttar Pradesh shops and establishments law was amended with effect from 19 November 2025: it applies to establishments with 20 or more employees, allows a 9-hour day and overtime of up to 144 hours a quarter, and includes outsourced-agency workers within the definition of employee.
- Statutory payroll lines for UP employees are usually PF, ESI and TDS, plus bonus and gratuity where they apply.
Running Uttar Pradesh payroll in NeevHR
- No PT or LWF is deducted for employees whose work location is Uttar Pradesh.
- PF, ESI and TDS apply as usual, and the payroll exception report flags pay below the configured minimum wage.