Payroll in Madhya Pradesh
Professional tax, labour welfare fund for employers in Madhya Pradesh. These are the figures Flowy's payroll uses: when an employee's work location is in Madhya Pradesh, these rules apply to them without anyone configuring them.
Professional tax
Deducted from salary each month, on the employee's monthly gross.
| Monthly gross salary | Professional tax a month |
|---|---|
| Up to ₹18,750 | Nil |
| ₹18,751 to ₹25,000 | ₹125 |
| ₹25,001 to ₹33,333 | ₹166 (₹174 in March) |
| Above ₹33,333 | ₹208 (₹212 in March) |
No employee pays more than ₹2,500 in a year across all months.
Source: MP Vritti Kar Adhiniyam 1995, Schedule entry 1, as substituted by Act 20 of 2018 (from 1 April 2018).
Labour welfare fund
Due in June and December, from both the employee and the employer.
| Monthly wage | Employee | Employer |
|---|---|---|
| Any wage | ₹10 | ₹50 |
The employer also pays at least ₹2,500 per establishment every six months, whatever the headcount. The figures above are per employee and do not include that top-up.
Source: MP Gazette, 30 January 2026 (No. LAB-8-0003-2025).
Minimum wage
Flowy does not publish a Madhya Pradesh minimum wage schedule yet. Schedules are notified per industry, skill level and zone and revised during the year, so check the current notification from the Madhya Pradesh labour department.
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What is the professional tax rate in Madhya Pradesh?
It depends on the employee's monthly gross salary: nil up to ₹18,750; ₹125 a month on ₹18,751 to ₹25,000; ₹166 a month on ₹25,001 to ₹33,333 (₹174 in March); ₹208 a month from ₹33,334 (₹212 in March). No employee pays more than ₹2,500 in a year.
Who pays professional tax in Madhya Pradesh?
Employees whose monthly gross salary is ₹18,751 or more. The employer deducts it from salary and pays it to the state. The state's Act exempts some groups of employees, so check those against your staff.
Why is professional tax ₹174 in March in Madhya Pradesh?
The amount is ₹166 a month, and ₹174 in March, so the year comes to ₹2,000. The Constitution caps professional tax at ₹2,500 a year.
How much labour welfare fund is deducted from salary in Madhya Pradesh?
₹10 from the employee and ₹50 from the employer, in June and December.
Running payroll in more than one state?
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