Haryana Labour Welfare Fund & Professional Tax: Employer Payroll Guide
Haryana does not levy Professional Tax on salary, but that does not mean there is no state labour deduction. This guide covers the Haryana Labour Welfare Fund rate from 1 January 2026, who is covered, how the contribution is calculated, and what payroll teams should verify before the next salary run.
MicroPlesk Regulatory & Hardware Engineering Team
Statutory VerifiedReviewed against Indian Labour Codes, EPFO & ESIC Official Circulars (2026)
Editorial Standards:Our guides and payroll formulas are compiled by Indian payroll practitioners and hardware systems engineers. Every formula incorporates the latest statutory notifications from the Employees' Provident Fund Organisation (EPFO), Employees' State Insurance Corporation (ESIC), state Professional Tax acts, and the Factories Act, 1948.
Disclaimer: This guide is published for informational and operational workforce management purposes. While verified against 2026 statutory rules, organizations should consult their designated chartered accountant or legal counsel for entity-specific audits.
Quick answer
From 1 January 2026, the Haryana LWF employee contribution is 0.2% of wages, capped at ₹35 per month. The employer contributes twice that amount, capped at ₹70. The maximum combined contribution is ₹105 per employee per month. Haryana Professional Tax on salary is nil.
Haryana LWF at a glance
| Governing law | Punjab Labour Welfare Fund Act, 1965, as applied in Haryana |
|---|---|
| Coverage | Factories, and shops or commercial establishments with 10 or more employees. The Act's establishment definition uses employment on any day or during the preceding 12 months. |
| Employee share | 0.2% of salary or wages, capped at ₹35 per month from 1 January 2026 |
| Employer share | Twice the employee share, capped at ₹70 per month |
| Maximum combined | ₹105 per employee per month |
| Payment | Calculated monthly. The Act requires payment of both shares to the Fund before 31 December each year through online mode. Confirm the current monthly remittance schedule on the Board portal. |
| Professional Tax | Nil on salary; no PTRC, PTEC or PT return for Haryana employees |
Source: Haryana Labour Welfare Board, Labour Department Haryana, and the Punjab Labour Welfare Fund Act, 1965. Rates shown are effective 1 January 2026.
Who is covered by Haryana LWF?
The Act's definition of establishment includes a factory and any premises where an industry is carried on. It also includes a shop or commercial establishment covered by the Punjab Shops and Commercial Establishments Act, 1958, in which ten or more employees are employed on any day or were employed during the preceding twelve months.
The definition of employee is broad. It includes a person employed directly or through an agency, including a contractor, for remuneration in a factory or establishment to do work connected with its affairs. Payroll teams should therefore reconcile permanent staff and contract labour separately rather than assuming LWF applies only to direct employees.
Practical check:confirm your establishment's coverage and registration status with the Haryana Labour Welfare Board. The 10-employee threshold is in the Act's establishment definition, but coverage can depend on the type of establishment and the applicable notification.
How the contribution is calculated
The employee contribution is 0.2% of salary or wages, subject to the monthly cap. The employer contribution is twice the employee contribution. Both shares are remitted together, but only the employee share is deducted from the employee's salary.
| Monthly wages | 0.2% of wages | Employee share (capped ₹35) | Employer share (2×) | Total |
|---|---|---|---|---|
| ₹12,000 | ₹24 | ₹24 | ₹48 | ₹72 |
| ₹18,000 | ₹36 | ₹35 (cap) | ₹70 | ₹105 |
| ₹40,000 | ₹80 | ₹35 (cap) | ₹70 | ₹105 |
Illustrative examples only. Use the wage definition in the Act and your payroll records; do not assume the cap applies to a component other than the wage base the Act covers.
Due date, payment and late deposit
The Act requires every employer to pay both its own contribution and the employee contribution to the Fund before 31 December of every year through online mode. The contribution itself is calculated every month, and many payroll teams remit monthly. Treat 31 December as the statutory outer deadline, not as an instruction to delay the monthly deduction.
If the contribution is not paid within one month from the date specified under the Act, the employer is liable to pay interest at 12% per annum until the amount is deposited. Keep the challan, payment reference and employee-wise working in the payroll file so a later inspection or reconciliation does not depend on memory.
Haryana Professional Tax: why the deduction is zero
Haryana does not levy Professional Tax on salaried employees, professionals or businesses. That means a Gurgaon or Manesar employer does not need a Professional Tax Registration Certificate (PTRC), a Professional Tax Enrolment Certificate (PTEC) or a monthly PT return for Haryana-based employees.
Because no PT is paid, there is no Professional Tax amount to claim as a deduction under Section 16(iii) of the Income-tax Act for Haryana salary income. This is different from states such as Maharashtra, Karnataka, Tamil Nadu, Telangana, Gujarat and West Bengal, where PT applies on the applicable slabs.
Do not confuse zero PT with zero state compliance. Haryana employers still need to handle EPF, ESI, TDS, Haryana Labour Welfare Fund and applicable labour-law records.
Where Haryana LWF appears in payroll
- Employee deduction: the capped employee share reduces take-home pay and appears on the payslip and salary register.
- Employer cost: the employer share is an additional business cost and should appear in the CTC or employer-cost sheet, not as an employee deduction.
- Remittance: both shares are paid together to the Fund, with the employee-wise working retained for reconciliation.
- Last working day: the Act defines an employee for this purpose as a person on the register of the establishment on the last working day of the month. Check joiners and leavers against that rule before finalising the month.
Month-end Haryana payroll checklist
- Finalise attendance, paid days and wage base for each employee.
- Identify employees on the register on the last working day of the month.
- Calculate 0.2% of wages, apply the ₹35 employee cap, and double it for the employer share.
- Deduct only the employee share from salary; keep the employer share in the employer cost.
- Reconcile the employee-wise LWF working with the salary register and payslips.
- Remit both shares through the Board's online mode and retain the challan and working.
- Check that Haryana PT is zero and that EPF, ESI and TDS have been handled separately.
Multi-state payroll: Haryana plus PT states
If you have employees in Haryana and in a state that levies Professional Tax, apply the rules by the employee's work location. A Haryana employee should not have PT deducted merely because the company is registered in another state. Conversely, an employee based in a PT state may need PT even if the company's head office is in Gurgaon.
Labour Welfare Fund rules are also state-specific. Haryana's percentage-based LWF is different from the fixed half-yearly or annual contributions used in several other states. Keep the state-wise deduction, employer cost and remittance working separate in the payroll system.
Run Haryana payroll with LWF and zero PT in one system
MicroPlesk supports Haryana Labour Welfare Fund in payroll and applies zero Professional Tax for Haryana employees. Attendance can come from the mobile app/PWA, your existing eSSL/ZKTeco biometric devices, or both, so the salary run and the attendance register stay together.
MicroPlesk is payroll software, not a law firm. Verify the current statute, notifications and portal instructions with the Haryana Labour Welfare Board or your compliance adviser.
Related guides
Official sources
- Haryana Labour Welfare Board — contribution rates and Board information
- Punjab Labour Welfare Fund Act, 1965 (official PDF)
- Labour Department Haryana
Last updated: 21 October 2026. Rates and portal rules can change; check the official source before filing.
Frequently asked questions
Is Professional Tax applicable in Haryana?
No. Haryana does not levy Professional Tax on salaried employees or professionals. Employers with Haryana-based staff do not need a PTRC, PTEC or monthly PT return for those employees. Other deductions such as EPF, ESI, TDS and Haryana Labour Welfare Fund still apply where the rules make them applicable.
What is the Haryana LWF contribution rate in 2026?
From 1 January 2026, each employee contributes 0.2% of salary or wages, capped at ₹35 per month. The employer contributes twice the employee share, capped at ₹70 per month. The maximum combined contribution is therefore ₹105 per employee per month.
Is Haryana LWF paid monthly or yearly?
The contribution is calculated every month. The Act requires the employer to pay both the employee and employer shares to the Fund before 31 December each year through online mode. Many payroll teams remit monthly, so confirm the current monthly schedule on the Haryana Labour Welfare Board portal before filing.
Who contributes to Haryana LWF — employee, employer, or both?
Both contribute. The employee share is deducted from wages. The employer pays its own share, which is twice the employee share, and remits both amounts together. The employer share is a business cost and should not be deducted from the employee's salary.
Does Haryana LWF apply to contract labour?
The Act's definition of employee includes a person employed directly or through an agency, including a contractor. Establishments covered by the Act should therefore keep contractor-wise attendance and wage records and confirm how LWF is handled in contractor invoices and returns.
Can payroll software calculate Haryana LWF automatically?
MicroPlesk supports Haryana LWF in payroll, including the employee deduction, employer contribution, payslip and salary register entries. It also applies zero Professional Tax for Haryana employees while supporting PT for employees based in states that levy it. Always verify the current rate and payment schedule with the Haryana Labour Welfare Board.