Professional Tax slabs in Punjab
Punjab levies Professional Tax on the year's salary, spread over the twelve months. The employer deducts it from salary and pays it to the state. The current slabs, in force from 19 April 2018:
- ₹0–₹2,50,000: nil
- ₹2,50,001 and above: ₹2,400
- On the year's pay, a yearly amount collected over twelve months
Law: Punjab State Development Tax Act, 2018.
Examples
| Monthly gross salary | Professional Tax in a usual month | In a year |
|---|---|---|
| ₹15,000 | Nil | ₹0 |
| ₹25,000 | ₹200 | ₹2,400 |
| ₹50,000 | ₹200 | ₹2,400 |
Figures for a man with the same salary all year. Use the Professional Tax calculator for any salary.
Labour Welfare Fund in Punjab
Employers in Punjab deduct the employee's Labour Welfare Fund contribution from salary and add their own share. It is deducted every month. Current figures, from 1 January 2014:
- Employee ₹5 · employer ₹20
- Deducted every month
Law: Punjab Labour Welfare Fund Act, 1965 (amended 2014).
Which establishments and employees are covered depends on the state Act; check coverage for your establishment.
Minimum wages in Punjab
Monthly minimum wages (basic and dearness allowance together) from 1 May 2026, for the whole state, shops and commercial establishments:
| Category | Minimum a month |
|---|---|
| Unskilled | ₹13,486 |
| Semi-skilled | ₹14,383 |
| Skilled | ₹15,414 |
| Highly skilled | ₹16,601 |
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 Punjab
Under Punjab Shops and Commercial Establishments Act, 1958, amended 2025:
- Up to 10 hours a day, 48 a week
- Overtime at 2x ordinary wages
- 18 days' earned leave a year (per year of service)
- 7 days' casual leave a year
- 7 days' sick leave a year
- 7 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 Punjab
- Set each employee's state by where they actually work. Staff based in Punjab follow Punjab'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 Punjab
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 Punjab's rules.
How HR Bingo handles Punjab
- Choose Punjab 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
What is the minimum wage in Punjab?
For an unskilled worker, ₹13,486 a month in the whole state, from 1 May 2026. Semi-skilled, skilled and highly skilled workers have higher minimums.
Is there Professional Tax in Punjab?
Yes. Punjab levies Professional Tax on the year's salary, spread over the twelve months.
How much Professional Tax is deducted on a salary of ₹25,000 in Punjab?
₹200 in a usual month and ₹2,400 in a year.
Is Labour Welfare Fund deducted in Punjab?
Yes, every month, with an employee share and an employer share.