Updated: 8 May 2026

Multi-State Payroll Dashboard

Build Your Multi-State Payroll Dashboard

Enter the number of employees and average gross monthly salary for each state where you operate. Leave blank for states with no employees. The dashboard computes per-state cost, professional tax, statutory burden, and consolidated employer total — plus state-specific compliance flags.

Per-State Headcount & Average Salary
Per-State Breakdown
State Employees Avg Salary Salary Cost Prof. Tax Statutory* Monthly Total
*Statutory = Employer PF (12% capped at ₹15K basic) + ESI (3.25% if avg salary ≤ ₹21K) + Gratuity (4.81% of basic, basic = 50% of CTC).
Geographic Cost Distribution (Monthly Total)
Compliance Flags & Recommendations
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Professional Tax — State-Wise Slabs

Professional Tax is levied by state governments under Article 276 of the Constitution. Maximum annual PT any state can charge is ₹2,500 per Article 276 cap. Currently 21 states + 1 UT levy PT; 14+ states do not. Multi-state employers must register separately in each PT-applicable state where they have employees.

States That Levy Professional Tax

StateThresholdMonthly PTSpecial Notes
MaharashtraMen: ₹7,500
Women: ₹25,000
₹0 to ₹200
(₹300 in Feb)
Gender-specific. Annual cap ₹2,500.
Karnataka₹25,000 (revised Apr 2025)₹200 (₹300 in Feb)All GST-registered must enroll regardless of headcount.
West Bengal₹10,000₹110 to ₹200
(4 tiers)
Annual payment by 31 July. 1% interest on delay.
Tamil Nadu₹21,000 (half-yearly)Half-yearly slabsPaid in August + January. Compute on 6-month total.
Telangana / AP₹15,000₹150 to ₹200Standard monthly slabs.
Gujarat₹12,000₹150 to ₹200Sliding monthly slabs.
Madhya Pradesh₹15,000₹208/moAbove threshold flat rate.
KeralaHalf-yearly₹150 to ₹208/mo equiv.Half-yearly payment in Aug + Feb.
Odisha₹14,000₹125 to ₹200Sliding monthly slabs.
PunjabIncome-based₹200/mo flatLevied on most salaried employees.

States That Do NOT Levy Professional Tax

Professional Tax is not applicable in: Delhi, Uttar Pradesh, Haryana, Rajasthan, Chhattisgarh, Jharkhand, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Goa, Arunachal Pradesh, and several other northeastern states. Companies headquartered in these states do not deduct PT for local employees but must apply PT for employees working in PT-applicable states.

Watch-out: Delhi NCR spans 3 jurisdictions. Delhi (no PT), Uttar Pradesh — Noida/Greater Noida/Ghaziabad (PT introduced in some districts), Haryana — Gurgaon/Faridabad (no PT). Apply PT based on each employee's actual work location, not the registered office address. Multi-state operators commonly miss this.

State Minimum Wages — 2026 Reference

State minimum wages are notified by state Labour Departments under Section 5 of the Code on Wages 2019. Rates vary by state, industry, and worker skill category. The table below shows indicative monthly minimum wages for unskilled and skilled workers under the Shops & Establishments framework. Verify each state's current notification before payroll application.

StateUnskilled (₹/mo)Semi-Skilled (₹/mo)Skilled (₹/mo)Highly Skilled (₹/mo)
Delhi₹19,846₹21,789₹23,757₹26,143
Maharashtra₹14,000₹15,500₹16,700₹18,250
Karnataka₹13,500₹15,000₹16,000₹18,000
Tamil Nadu₹14,000₹15,500₹17,000₹19,000
Telangana₹13,500₹15,000₹16,000₹17,500
Gujarat₹12,500₹14,000₹15,000₹16,500
Uttar Pradesh₹12,000₹13,000₹14,000₹16,000
Haryana₹14,000₹15,500₹16,500₹18,750
West Bengal₹11,000₹12,500₹13,500₹15,000
Punjab₹11,389₹12,500₹13,500₹14,500

Indicative rates as of early 2026. State rates revised by various Labour Departments at different schedules — verify each state's current notification before relying on these for payroll.

Multi-state minimum wage tracker. States revise rates twice yearly or annually based on CPI movement. A company operating across Delhi + Karnataka + Maharashtra + Gujarat needs four separate revision-tracking processes. Patron's payroll team — staffed by ICAI-empanelled CAs — maintains automated trackers for client portfolios with email alerts on each notification.

Multi-state operations? Patron handles it end-to-end.

Patron's payroll team manages multi-state PT registrations, minimum wage tracking, MLWF contributions, S&E Act compliance, and consolidated payroll processing across 10+ states. Fixed-fee, audit-ready output.

Labour Welfare Fund (LWF) — State-Specific

Labour Welfare Fund is a state-level statutory contribution under each state's Labour Welfare Fund Act. The fund is used by State Labour Welfare Boards to finance welfare schemes — housing, medical, recreation, education for workers' children. Contributions are typically nominal but missing state-specific LWF is a common multi-state compliance gap.

StateEmployer ShareEmployee ShareFrequency
Maharashtra₹12 / 6 months₹6 / 6 monthsBi-annual (Jun, Dec)
Karnataka₹40 / year₹20 / yearAnnual (Jan)
Tamil Nadu₹20 / year₹10 / yearAnnual (Jan)
Andhra Pradesh / Telangana₹30 / year₹2 / yearAnnual (Jan)
Gujarat₹6 / 6 months₹3 / 6 monthsBi-annual
Madhya Pradesh₹30 / 6 months₹10 / 6 monthsBi-annual
Delhi₹2.25 / month₹0.75 / monthMonthly
Punjab₹5 / month₹5 / monthMonthly
Haryana₹25 / month₹10 / monthMonthly
West Bengal₹15 / 6 months₹3 / 6 monthsBi-annual

Many states have additional schemes — building & construction welfare cess, contract labour welfare cess, etc. Verify state-specific applicability based on your industry classification.

Setting Up Multi-State Payroll

Recommended Architecture

Modern best practice is centralized payroll with state-aware logic. Use a single payroll software (Keka, GreytHR, Zoho People, SAP SuccessFactors) configured with state-specific rule sets. The central team manages compliance while location-specific rules apply automatically based on each employee's work location.

Per-State Compliance Footprint

Compliance ItemScopeFrequency
PTRC RegistrationPer state (where PT applicable)One-time + monthly/quarterly returns
S&E Act RegistrationPer state where office locatedOne-time + annual renewal
EPF Sub-CodePer location (if separate)One-time + monthly ECR
ESIC Branch CodePer state with eligible employeesOne-time + monthly contributions
LWF RegistrationPer state (where applicable)One-time + bi-annual/annual contribution
Minimum Wage TrackerPer stateMonitor revisions (2x yearly typical)
State Specific ReturnsPer stateAnnual / bi-annual

Top Pitfalls

  • Wrong state PT applied — applying registered office state PT to employees working in different states
  • Missing PTRC registration when first employee hired in a new state — common during rapid expansion (also impacts CBIC GST place-of-supply assessments)
  • Missing Karnataka February ₹300 / Maharashtra March ₹300 — payroll software defaults to ₹200 for all 12 months
  • Not applying gender-specific exemption for women in Maharashtra (up to ₹25,000 exempt)
  • Outdated minimum wage rates after state notification — typical 6-month lag for unprepared employers
  • Missing Tamil Nadu half-yearly logic — TN PT computed on 6-month gross, not monthly
  • Missing state LWF contributions — small amounts but missing creates audit findings
  • Not deregistering on office closure — keeps liability open until formal closure

Real-world cost. A company operating across 4 states discovered during an early-2026 audit that 2 states had October 2024 rates applied while 2 had October 2025 rates. Total underpayment was ₹4.3 lakh across 28 workers over 6 months — before interest and 10× compensation under Code on Wages Section 56. Multi-state PT or minimum wage drift is the single biggest payroll compliance risk for distributed operations.

Frequently Asked Questions

Professional Tax is a state-level direct tax levied by state governments under Article 276 of the Constitution on salaries and professional income. It is currently applicable in 21 Indian states and one Union Territory including Maharashtra Karnataka Tamil Nadu Telangana Gujarat West Bengal and others. PT is not applicable in Delhi Uttar Pradesh Haryana Rajasthan and several northeastern states. The maximum annual PT any state can charge is twenty-five hundred rupees per Article 276.
Maharashtra has gender-specific Professional Tax slabs. Men earning up to seven thousand five hundred rupees per month are exempt; one hundred seventy-five rupees per month between 7501 and 10000; two hundred per month above ten thousand with three hundred in February to reach annual cap of two thousand five hundred rupees. Women earning up to twenty-five thousand per month are fully exempt. Employers pay PT to Maharashtra State Tax Department monthly.
Karnataka revised its Professional Tax slabs effective 1 April 2025. Employees earning below twenty-five thousand rupees per month are exempt. Above twenty-five thousand rupees the deduction is two hundred rupees per month for eleven months and three hundred rupees in February reaching the annual cap of two thousand five hundred rupees. Karnataka requires PT payment by the twentieth of the succeeding month. Late payment attracts 1.25 percent monthly interest. All GST-registered entities must obtain PTEC enrollment regardless of employee count.
Professional Tax is not applicable in Delhi National Capital Territory. Companies headquartered in Delhi do not deduct PT for Delhi-based employees. However Delhi NCR operations span three different state jurisdictions — Delhi Haryana (Gurgaon Faridabad) and Uttar Pradesh (Noida Greater Noida Ghaziabad). Delhi and Haryana are PT-exempt but Uttar Pradesh introduced PT in some districts. Employers must apply state-specific rules based on actual work location of each employee not the registered office address.
Multi-state employers must obtain separate Professional Tax Registration Certificate in each PT-applicable state where employees work. Each state has its own slab structure deduction periodicity (monthly half-yearly or annual) and remittance deadlines. PT must be applied based on the work location state of each employee not the registered office. Failing to register in a state where employees work attracts late registration penalty plus penalty on all unpaid PT plus interest typically 1 to 1.25 percent per month.
Tamil Nadu Professional Tax is calculated on a half-yearly basis not monthly. Deductions are made twice a year in August (covering April-September) and January (covering October-March). The half-yearly slab is computed on six-month gross total not divided from monthly. Maximum half-yearly PT is twelve hundred fifty rupees totaling twenty-five hundred annually. Verify your payroll software handles the half-yearly slab correctly.
Yes. State minimum wages vary significantly by state, industry, and worker skill category. As of 2026 monthly unskilled worker minimum wages range from approximately eleven thousand rupees in Punjab to nineteen thousand eight hundred forty-six rupees in Delhi. State governments revise rates twice yearly or annually based on Consumer Price Index. Multi-state employers must apply each state rate for that location and revise on each notification. Underpayment attracts ten times compensation under Section 56(1) of Code on Wages plus interest.
Maharashtra Labour Welfare Fund Act 1953 requires employers with five or more employees in Maharashtra to contribute to the State Labour Welfare Fund. Contribution is twelve rupees per employee per six months by the employer plus six rupees by the employee. Payment is bi-annual by 30 June and 31 December. Similar Labour Welfare Fund schemes exist in Karnataka Tamil Nadu Gujarat Madhya Pradesh Punjab and other states with varying amounts.
Yes Provident Fund under EPF Act 1952 and Employee State Insurance under ESI Act 1948 are central acts that apply uniformly across all Indian states. PF is mandatory for employees with basic wages up to fifteen thousand rupees per month with employer and employee both contributing twelve percent. ESI is mandatory for employees earning up to twenty-one thousand per month gross with employer contributing 3.25 percent and employee 0.75 percent.
Shops and Establishments Act registration is a state-level requirement under each state Shops and Establishments Act. Every commercial establishment must register within thirty days of commencing operations in that state. Each state has its own Act with different working hour limits leave entitlements overtime rules and inspection provisions. Multi-state employers need separate registration in each state where they have offices. Failure to register attracts state-specific penalties typically ranging from five to twenty-five thousand rupees plus per-day continuing fine.
Track state Labour Department websites for notification updates. Most states revise minimum wages twice yearly typically on 1 April and 1 October based on CPI movement though revision schedules vary. Subscribe to state Labour Department email alerts and engage a labour-law compliance partner who tracks revisions across all relevant states. Multi-state operators commonly miss revisions resulting in retrospective compliance gaps. The Patron Accounting payroll team maintains a multi-state minimum wage tracker for client portfolios.
Modern best practice is centralized payroll with state-aware logic. Use a single payroll software (Keka GreytHR Zoho People SAP SuccessFactors) configured with state-specific rule sets for PT slabs minimum wages MLWF and S&E Act provisions. The central team manages compliance while location-specific rules apply automatically based on each employee work location. Decentralized payroll with state-specific local processors increases coordination overhead and creates audit reconciliation challenges. Centralized with state-aware logic is the standard for companies above twenty employees.
Common multi-state payroll risks include applying registered office state PT to employees working in different states (back-payment plus interest), missing PTRC registration when first employee hired in new state (late registration penalty), using outdated minimum wage rates after state notification (10x compensation under Code on Wages), missing state-specific Labour Welfare Fund contributions (per-day fine), and inconsistent leave entitlements across states. Multi-state operators should run quarterly compliance audits and engage labour law specialists for new state expansion.
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