West Bengal payroll: professional tax, LWF and state rules

Professional Tax in West Bengal

Professional tax is levied under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979. Employers obtain a Certificate of Registration for deducting tax from employees, deposit the tax each month and, since 2022-23, file a single annual return after the year ends. The slab is tested on salary including perquisites, not on basic alone.

The schedule below has applied since April 2014. A notification dated 18 August 2026 proposes a new employee schedule from 1 October 2026: nil up to ₹20,000, then ₹100, ₹140, ₹170 and ₹208 above ₹1,00,000. It was published as a proposal inviting objections, and a final notification had not been found at the time of review; check the Commercial Taxes website before applying it.

Labour Welfare Fund in West Bengal

The West Bengal Labour Welfare Fund Act, 1974 applies half-yearly, for the periods ending 30 June and 31 December. The employee share is ₹3 per half-year; the employer share is widely reported as ₹30 per half-year from January 2024. The official LWF portal was unavailable at the time of review, so confirm the current employer rate and due dates with the Labour Department.

Minimum wages in West Bengal

Minimum wages are revised every six months, on 1 January and 1 July, through variable dearness allowance, by zone (A for urban areas, B for the rest) and skill. Circulars for July to December 2026 were issued in June 2026.

Shops and establishments and other considerations

• West Bengal Shops and Establishments Act, 1963: register within 30 days of starting, pay wages by the 10th of the following month, and pay overtime at twice the ordinary rate.
• The Act provides 14 days of privilege leave, 14 days of sick leave on half pay and 10 days of casual leave a year.