Professional Tax and Labour Welfare Fund in Delhi

Professional Tax in Delhi

Delhi does not levy Professional Tax on salaries. Nothing is deducted from employees' pay for it, and payroll for Delhi shows Professional Tax as nil.

Labour Welfare Fund in Delhi

Employers in Delhi deduct the employee's Labour Welfare Fund contribution from salary and add their own share. It is deducted in June and December. Current figures, from 15 August 1998:

• Employee ₹0.75 · employer ₹2.25
• Deducted in June, December

Law: Delhi Labour Welfare Fund Act, 1997.

Which establishments and employees are covered depends on the state Act; check coverage for your establishment.

Minimum wages in Delhi

Monthly minimum wages (basic and dearness allowance together) from 1 April 2025, for the whole of Delhi, shops and commercial establishments:

Other zones and industries can have different rates, and the dearness allowance is usually revised twice a year. HR Bingo warns when a salary's basic and DA fall below the minimum for the employee's category.

Working hours and leave in Delhi

Under Delhi Shops and Establishments Act, 1954:

• Up to 9 hours a day, 48 a week
• Overtime at 2x ordinary wages
• 15 days' earned leave a year (after a year of service)
• 12 days' casual leave a year
• 3 national and festival holidays a year
• One paid closed day a week

In HR Bingo, Add the usual leave for your state on the Leave types page creates these leave types for you to review.

Employer checklist for Delhi

• Set each employee's state by where they actually work. Staff based in Delhi follow Delhi's rules even if the company is registered elsewhere.
• Check the month's payroll register for Professional Tax and LWF lines before salaries are paid.
• Pay the amounts deducted to the state by its due date and keep the payment receipts with that month's payroll.
• Recheck the figures when the state notifies a change. Rates on this page are updated from the date a change takes effect.

Other state rules in Delhi

Minimum wages, working hours, weekly offs and leave under the Shops and Establishments Act also differ from state to state. In HR Bingo you set shifts, weekly offs, holidays and leave policies for each company, so they can follow Delhi's rules.

How HR Bingo handles Delhi

• Choose Delhi as the company's state (or set it per employee, for staff working in another state) and payroll applies the figures on this page every month.
• Rates are kept with the date they take effect. When a state revises its slabs, payroll uses the new figures from that date, and earlier months keep the old ones.
• Payslips show Professional Tax and LWF as separate lines, and the monthly registers list them for filing.
• PF, ESIC and TDS are the same in every state and are worked out on the same payslip.
• Huminivex's payroll team checks these figures. With managed HR, Huminivex also runs payroll and the filings for you.

Frequently asked questions