Telangana Labour Law Compliance Guide for Employers, 2026 Edition
Telangana labour law compliance covers state-specific obligations, including Professional Tax, the Telangana Labour Welfare Fund, the Shops and Establishments Act, and central laws, for employers in Hyderabad, Warangal, Nizamabad, and elsewhere across the state.
Quick answer: Employers in Telangana pay Professional Tax of ₹150 a month on salaries from ₹15,001 to ₹20,000, and ₹200 above that, filed by the 10th of the following month. The Labour Welfare Fund is ₹2 from the employee and ₹5 from the employer each year, and shops must register within 30 days. PF and ESIC are due by the 15th of the following month.
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 Telangana employers:
- The Codes now sit above many existing Telangana state laws. Several state acts, including Shops & Establishments, Professional Tax administration, 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 Telangana state-level rules are still being aligned. During this transition, employers should comply with both the existing Telangana acts and the new Codes. Niyuk tracks both, so you stay covered.
A couple of practical notes: state rules under the four Codes are notified state by state, so what has changed in Telangana will not always match what has changed elsewhere. For a worked example of what notified state rules actually change, see Niyuk's Karnataka Labour Law Compliance Guide. And if running payroll and attendance registers in-house isn't the best use of your team's time, a cloud HRMS with an attendance module can keep these records current automatically.
This guide is current as of June 2026. Labour Code rules are still evolving, and Niyuk updates these guides as new notifications are issued.
Telangana-Specific Labour Laws
1. Telangana Professional Tax
| Monthly Salary | PT per Month |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 |
Key points:
- Maximum annual PT is ₹2,500 per employee.
- Filing is monthly with the Telangana Commercial Tax Department.
- Payment is made through the Telangana e-Seva or TGCT portal.
2. Telangana Labour Welfare Fund
- Employee contribution: ₹2 a year.
- Employer contribution: ₹5 a year per employee.
- Due date: 31 January, annually.
3. Telangana Shops and Establishments Act
- Registration: within 30 days of commencement.
- Working hours: maximum 9 hours a day, 48 hours a week.
- Overtime: paid at twice the ordinary rate of wages.
- Leave: 15 days of earned leave a year.
- IT/ITES companies: exemptions on working hours and women's night shifts.
4. Telangana Minimum Wages
The Telangana government sets minimum wages by zone and occupation, with Zone I, Hyderabad and the surrounding areas, carrying the higher rates. Employers need to check current minimum wage notifications to stay compliant.
Central Laws Applicable in Telangana
- EPF: 12% employer plus 12% employee, for establishments with 20 or more employees.
- ESIC: 3.25% employer plus 0.75% employee, for employees earning up to ₹21,000 a month.
- Payment of Bonus: 8.33% to 20%, under Chapter IV of the Code on Wages, 2019.
- Payment of Gratuity: payable after 5 years, for establishments with 10 or more employees.
Telangana Compliance Calendar
| Compliance | Frequency | Due Date |
|---|---|---|
| PF payment | Monthly | 15th of following month |
| ESIC payment | Monthly | 15th of following month |
| Telangana PT | Monthly | 10th of following month |
| TDS payment | Monthly | 7th of following month |
| Telangana LWF | Annual | 31 January |
Penalties for Non-Compliance in Telangana
| Violation | Penalty |
|---|---|
| Late PT filing | 2% per month interest |
| Non-registration under Shops Act | Fine of up to ₹25,000 |
| Late PF payment | 12% p.a. interest, plus damages |
| Minimum wage violation | Fine of up to ₹50,000 |
IT/ITES Exemptions in Telangana
- Flexible working hours for IT/ITES establishments.
- Women employees allowed to work night shifts, with safety and transport provisions in place.
- Modified overtime regulations for project-based work.
- Special provisions under Telangana's IT/ITES policy.
Need help staying compliant?
Talk to Niyuk's HR experts about Telangana PT, Labour Welfare Fund, Shops Act, and PF/ESIC compliance.
Talk to an HR ExpertTelangana Labour Compliance FAQs
What is the PT rate in Telangana?
Telangana PT is ₹200 a month for salaries above ₹20,000, ₹150 for salaries from ₹15,001 to ₹20,000, and nil below ₹15,000. Monthly filing is mandatory by the 10th of the following month.
Is LWF mandatory in Telangana?
Yes. Telangana Labour Welfare Fund contributions are mandatory: ₹5 a year per employee from the employer and ₹2 a year from the employee, payable annually by 31 January.
Do IT companies in Hyderabad get compliance relaxations?
Yes. Telangana provides working-hour and night-shift relaxations for IT/ITES companies. PF, ESIC, PT, and other statutory obligations remain unchanged regardless.
What are the minimum wages in Telangana?
Telangana's minimum wages vary by zone and occupation, with the Hyderabad zone carrying higher rates. Current rates are notified by the Telangana Labour Department and revised periodically.
How does Niyuk handle Telangana compliance?
Niyuk manages Telangana compliance end to end, including PT filing, LWF contributions, Shops Act compliance, PF and ESIC, TDS, and bonus and gratuity calculations, configured for Telangana's specific rules and deadlines.