Payroll Compliance in Telangana: Professional Tax, LWF and State Rules

Employers with staff in Telangana follow the central rules for TDS, PF and ESI, plus a set of state obligations. This guide covers the state layer. Rates and due dates change, so confirm current rules with the relevant department.

Professional Tax

Telangana levies Professional Tax on salaried employees above a salary threshold. Employers register with the Commercial Taxes Department, deduct PT monthly at the state's slab rates, pay it by the due date in the following month, and file returns. Under the slabs that have applied in recent years, salaries up to ₹15,000 a month are exempt, with a fixed monthly deduction for higher slabs, within the ₹2,500 annual cap. Companies and firms also enrol and pay their own annual PT.

Labour Welfare Fund

Telangana's Labour Welfare Fund Act requires small annual contributions from employees and employers for covered establishments. Check the current rates and due date with the Telangana Labour Welfare Board.

Shops and Establishments

Offices and commercial establishments register under the Telangana Shops and Establishments Act, which also governs working hours, holidays, leave and employment of women in the evening and night, with safeguards.

Minimum Wages

Telangana notifies minimum wages for scheduled employments, with a variable dearness allowance revised periodically. Under the Code on Wages, minimum wages apply universally, with a national floor wage. Check that the lowest-paid roles meet current rates.

Central Obligations

• TDS on salary and Form 24Q.
• PF, where there are 20 or more employees.
• ESI, for employees earning up to ₹21,000 a month in notified areas, which include Hyderabad.

Employees in Other States

Staff working outside Telangana follow their state's PT and LWF rules. Remote employees can create obligations in states where you have no office.

Getting Help

Think Filing runs payroll for Telangana employers, covering state and central compliance.