Delhi Labour Law Compliance Guide for Employers, 2026 Edition
Delhi labour law compliance centers on the Delhi Shops and Establishments Act, central labour laws like PF, ESIC, bonus, and gratuity, and the notable absence of Professional Tax. This guide covers what employers in Connaught Place, Nehru Place, Okhla Industrial Area, and elsewhere across the NCR need to stay compliant.
Quick answer: Delhi has no Professional Tax. Shops and establishments must register under the Delhi Shops and Establishments Act within 30 days of starting. Minimum wages, in force from 1 April 2025, range from ₹18,456 a month for unskilled workers to ₹24,356 for highly skilled workers. Delhi's Labour Welfare Fund is collected half-yearly; confirm the current amount with the Delhi Labour Welfare Board.
The 4 Labour Codes: What Changed (Effective 21 November 2025)
India's four new Labour Codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health & Working Conditions (OSH) Code, came into force on 21 November 2025, consolidating 29 central labour laws into four.
Here is what this means for Delhi employers:
- The Codes now sit above many existing Delhi state laws. Several state acts, including the Shops & Establishments Act, minimum wage notifications, and the Labour Welfare Fund, continue to operate, but increasingly within the framework of the Codes.
- "Wages" is now defined uniformly: basic pay plus dearness allowance plus retaining allowance must add up to at least 50% of total remuneration, which changes PF, gratuity, and bonus calculations for most salary structures.
- Appointment letters are now mandatory for every employee.
Important: The Codes are in force, and their principal rules were notified in May 2026, but some Delhi state-level rules are still being aligned. During this transition, employers should comply with both the existing Delhi acts and the new Codes. Niyuk tracks both, so you stay covered.
This guide is current as of June 2026. Labour Code rules are still evolving, and Niyuk updates these guides as new notifications are issued.
Delhi-Specific Regulations
1. No Professional Tax in Delhi
Delhi is one of the few states and union territories in India that does not levy Professional Tax, so employers here do not need to deduct PT from employee salaries. That said, if the company has branches in Haryana (Gurgaon) or Uttar Pradesh (Noida), PT may apply under those states' rules.
2. Delhi Shops and Establishments Act, 1954
- Registration: within 30 days of commencement, with the District Labour Commissioner.
- Working hours: maximum 9 hours a day, 48 hours a week for adults.
- Overtime: paid at twice the ordinary rate of wages.
- Rest interval: half an hour after 5 hours of work.
- Opening and closing hours: between 9 AM and 9 PM, extendable to 11 PM with permission.
- Weekly holiday: Sunday, or an alternative day if notified.
- Leave: 15 days of earned leave a year, plus 12 days of sick leave.
- Festival holidays: as per Delhi government notification.
3. Delhi Minimum Wages
Delhi's minimum wages are among the highest in India, categorized by skill level:
| Category | Monthly Minimum Wage (Approx.) |
|---|---|
| Unskilled | ₹18,456 |
| Semi-skilled | ₹20,371 |
| Skilled | ₹22,411 |
| Highly skilled/clerical | ₹24,356 |
These rates have been in force since 1 April 2025 (order dated 15 April 2025), with no later revision notified as of October 2026. Always verify current rates with the Delhi Labour Department.
4. Delhi Labour Welfare Fund
Delhi does operate a Labour Welfare Fund, administered by the Delhi Labour Welfare Board, and establishments registered under the Delhi Shops and Establishments Act, 1954 fall within its scope. Contributions are collected half-yearly, based on the register as on 30 June and 31 December. Published contribution amounts for Delhi vary across sources, so confirm the figure currently in force with the Delhi Labour Welfare Board before deducting or filing.
Central Laws Applicable in Delhi
- EPF: the standard 12% employer plus 12% employee, for eligible establishments.
- ESIC: 3.25% employer plus 0.75% employee.
- Payment of Bonus: 8.33% to 20%.
- Payment of Gratuity: payable after 5 years of continuous service.
- Maternity Benefit Act: 26 weeks of paid leave.
- Code on Wages, 2019, Section 3: equal pay for the same work or work of a similar nature, with no discrimination on the basis of gender.
Delhi Compliance Calendar
| Compliance | Frequency | Due Date |
|---|---|---|
| PF payment | Monthly | 15th of following month |
| ESIC payment | Monthly | 15th of following month |
| TDS payment | Monthly | 7th of following month |
| TDS returns | Quarterly | End of month following quarter |
| Bonus payment | Annual | Within 8 months of FY end |
NCR Multi-State Compliance
Many Delhi-based companies have employees across the NCR region, and each one follows its own state's rules:
| Location | Professional Tax | LWF | Shops Act |
|---|---|---|---|
| Delhi | Not applicable | Delhi LWF, half-yearly | Delhi Shops Act, 1954 |
| Gurgaon (Haryana) | May apply | Haryana LWF | Haryana Shops Act |
| Noida (UP) | Not currently levied | UP LWF | UP Shops Act |
| Faridabad (Haryana) | May apply | Haryana LWF | Haryana Shops Act |
Penalties for Non-Compliance in Delhi
| Violation | Penalty |
|---|---|
| Non-registration under Shops Act | Fine of up to ₹50,000 |
| Minimum wage violation | Fine of up to ₹50,000, plus imprisonment of up to 5 years |
| Late PF payment | 12% p.a. interest, plus damages |
| Working hours violation | Fine as per the Delhi Shops Act |
Need help staying compliant?
Talk to Niyuk's HR experts about Delhi NCR compliance across Shops Act, PF, ESIC, and multi-state rules.
Talk to an HR ExpertDelhi Labour Compliance FAQs
Is Professional Tax applicable in Delhi?
No. Delhi does not levy Professional Tax, which reduces the payroll compliance burden for Delhi employers. That said, if you have employees in Gurgaon (Haryana) or other states, that state's PT rules may apply to them.
What are the Delhi minimum wages?
Delhi has some of the highest minimum wages in India, ranging from approximately ₹18,456 a month for unskilled workers to ₹24,356 for highly skilled workers. Rates are revised periodically by the Delhi government.
Is LWF applicable in Delhi?
Yes. The Delhi Labour Welfare Board administers a Labour Welfare Fund covering establishments registered under the Delhi Shops and Establishments Act, 1954. Contributions are collected half-yearly, based on the register as on 30 June and 31 December. The amount currently in force isn't consistently reported across published sources, so confirm it with the Board before deducting or filing.
What Shops Act registration is needed in Delhi?
All shops and commercial establishments in Delhi must register under the Delhi Shops and Establishments Act, 1954 within 30 days of commencement, with the District Labour Commissioner.
How does Niyuk handle Delhi NCR compliance?
Niyuk manages Delhi compliance, including Shops Act, PF, ESIC, and TDS, along with multi-state compliance for NCR operations, handling the different rules for Delhi, Haryana, and UP employees from a single platform.