Professional Tax slabs in Karnataka
Karnataka levies Professional Tax on the month's gross salary, deducted every month. The employer deducts it from salary and pays it to the state. The current slabs, in force from 1 April 2025:
- ₹0–₹24,999: nil
- ₹25,000 and above: ₹200 (Feb ₹300)
Law: Karnataka Tax on Professions Act, 2025 amendment.
Examples
| Monthly gross salary | Professional Tax in a usual month | In a year |
|---|---|---|
| ₹15,000 | Nil | ₹0 |
| ₹25,000 | ₹200 | ₹2,500 |
| ₹50,000 | ₹200 | ₹2,500 |
Figures for a man with the same salary all year. Use the Professional Tax calculator for any salary.
Labour Welfare Fund in Karnataka
Employers in Karnataka deduct the employee's Labour Welfare Fund contribution from salary and add their own share. It is deducted in December. Current figures, from 1 January 2021:
- Employee ₹50 · employer ₹100
- Deducted in December
Law: Karnataka LWF Act.
Which establishments and employees are covered depends on the state Act; check coverage for your establishment.
Working hours and leave in Karnataka
Under Karnataka Shops and Commercial Establishments Act, 1961:
- Up to 9 hours a day, 48 a week
- Overtime at 2x ordinary wages
- 18 days' earned leave a year (1 day for every 20 days worked)
- 12 days' sick leave a year
- 10 national and festival holidays a year
- One full day off 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 Karnataka
- Set each employee's state by where they actually work. Staff based in Karnataka follow Karnataka'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 Karnataka
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 Karnataka's rules.
How HR Bingo handles Karnataka
- Choose Karnataka 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
Is there Professional Tax in Karnataka?
Yes. Karnataka levies Professional Tax on the month's gross salary, deducted every month.
How much Professional Tax is deducted on a salary of ₹25,000 in Karnataka?
₹200 in a usual month and ₹2,500 in a year.
Is Labour Welfare Fund deducted in Karnataka?
Yes, in December, with an employee share and an employer share.