Payroll in Maharashtra

Professional tax, labour welfare fund and minimum wage for employers in Maharashtra. These are the figures Flowy's payroll uses: when an employee's work location is in Maharashtra, these rules apply to them without anyone configuring them.

Professional tax

Deducted from salary each month, on the employee's monthly gross.

Men

Monthly gross salaryProfessional tax a month
Up to ₹7,500Nil
₹7,501 to ₹10,000₹175
Above ₹10,000₹200 (₹300 in February)

Women

Monthly gross salaryProfessional tax a month
Up to ₹25,000Nil
Above ₹25,000₹200 (₹300 in February)

No employee pays more than ₹2,500 in a year across all months.

Source: Maharashtra State Tax on Professions, Trades, Callings and Employments Act 1975, Schedule I, as substituted by Mah. Act XIX of 2023 from 1 April 2023.

Labour welfare fund

Due in June and December, from both the employee and the employer.

Monthly wageEmployeeEmployer
Any wage₹25₹75

Source: Maharashtra Act XXV of 2024, published 18 March 2024.

Minimum wage

Monthly minimum wages including variable dearness allowance, effective 2026-01-01, for Municipal corporation areas. Rates are notified per scheduled employment and zone; other zones are lower.

Employmentunskilledsemi-skilledskilledhighly-skilled
shops and commercial establishments₹15,900₹16,900₹17,900₹19,100

Source: Maharashtra Labour Department minimum wage notification.

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State rules are half of it. The other half is whether PF and gratuity are calculated on the wages the codes define.

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Questions

What is the professional tax rate in Maharashtra?

It depends on the employee's monthly gross salary, and for women on a higher threshold: men, nil up to ₹7,500; ₹175 a month on ₹7,501 to ₹10,000; ₹200 a month from ₹10,001 (₹300 in February); women, nil up to ₹25,000; ₹200 a month from ₹25,001 (₹300 in February). No employee pays more than ₹2,500 in a year.

Who pays professional tax in Maharashtra?

Men whose monthly gross salary is ₹7,501 or more, and women from ₹25,001. 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.

Do women pay professional tax in Maharashtra?

Not up to ₹25,000 a month. Above that, ₹200 a month from ₹25,001 (₹300 in February), the same as men above ₹7,500. The exemption for women dates from 1 April 2023.

Why is professional tax ₹300 in February in Maharashtra?

The amount is ₹200 a month, and ₹300 in February, so the year comes to ₹2,500. The Constitution caps professional tax at ₹2,500 a year.

How much labour welfare fund is deducted from salary in Maharashtra?

₹25 from the employee and ₹75 from the employer, in June and December.

Running payroll in more than one state?

Book a 10-minute Health Check. Bring three salary grades, anonymised, and the states you pay in.

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