Payroll in Tamil Nadu
Professional tax, labour welfare fund for employers in Tamil Nadu. These are the figures Flowy's payroll uses: when an employee's work location is in Tamil Nadu, these rules apply to them without anyone configuring them.
Professional tax
Levied on half-yearly income (April to September, October to March) and deducted from the August and January pay bills.
| Half-yearly income | Professional tax a half-year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 to ₹30,000 | ₹180 |
| ₹30,001 to ₹45,000 | ₹425 |
| ₹45,001 to ₹60,000 | ₹930 |
| ₹60,001 to ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
No employee pays more than ₹2,500 in a year across all months.
These are Greater Chennai Corporation’s rates, which the engine applies statewide. Other local bodies may charge differently on half-yearly incomes of ₹21,001 to ₹60,000.
Source: Greater Chennai Corporation half-yearly profession tax from 1 October 2024 (Tamil Nadu Urban Local Bodies Rules 2023, rule 275).
Labour welfare fund
Due in December, from both the employee and the employer.
| Monthly wage | Employee | Employer |
|---|---|---|
| Any wage | ₹20 | ₹40 |
The Act excludes managerial staff, supervisors drawing more than ₹15,000 a month, apprentices and part-time workers, and anyone employed for less than 30 days in the preceding year. Outside factories, plantations and motor transport it applies to establishments of five or more persons. Flowy deducts it from every employee in Tamil Nadu, so check these exclusions against your staff.
Source: G.O.(Ms) No. 161, 2 December 2022.
Minimum wage
Flowy does not publish a Tamil Nadu 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 Tamil Nadu labour department.
Does your salary structure pass the labour codes?
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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What is the professional tax rate in Tamil Nadu?
It depends on the employee's half-yearly income: nil up to ₹21,000; ₹180 a half-year on ₹21,001 to ₹30,000; ₹425 a half-year on ₹30,001 to ₹45,000; ₹930 a half-year on ₹45,001 to ₹60,000; ₹1,025 a half-year on ₹60,001 to ₹75,000; ₹1,250 a half-year from ₹75,001. It is deducted twice a year, from the August and January pay bills. No employee pays more than ₹2,500 in a year.
Who pays professional tax in Tamil Nadu?
Employees whose half-yearly income is ₹21,001 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.
How much labour welfare fund is deducted from salary in Tamil Nadu?
₹20 from the employee and ₹40 from the employer, in 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.