Payroll in Telangana

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

Professional tax

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

Monthly gross salaryProfessional tax a month
Up to ₹15,000Nil
₹15,001 to ₹20,000₹150
Above ₹20,000₹200

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

Source: Telangana Tax on Professions, Trades, Callings and Employments Act 1987, Schedule.

Labour welfare fund

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

Monthly wageEmployeeEmployer
Any wage₹2₹5

The Act excludes managerial staff, supervisors drawing more than ₹1,600 a month, apprentices and part-time workers, and anyone employed for less than 30 days in the year. Outside factories it applies to establishments of 20 or more persons. Flowy deducts it from every employee in Telangana, so check these exclusions against your staff.

Source: Telangana Labour Welfare Fund Act 1987, s.10.

Minimum wage

Flowy does not publish a Telangana 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 Telangana 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.

Run the free Payroll Health Check

Questions

What is the professional tax rate in Telangana?

It depends on the employee's monthly gross salary: nil up to ₹15,000; ₹150 a month on ₹15,001 to ₹20,000; ₹200 a month from ₹20,001. No employee pays more than ₹2,500 in a year.

Who pays professional tax in Telangana?

Employees whose monthly gross salary is ₹15,001 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 Telangana?

₹2 from the employee and ₹5 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.

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