West Bengal Labour Law Compliance Guide for Employers, 2026 Edition

The four Labour Codes came into force centrally on 21 November 2025. The Code on Wages absorbed the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. The Code on Social Security took in the EPF & MP Act, 1952, the ESI Act, 1948, the Payment of Gratuity Act, 1972, and the Maternity Benefit Act, 1961. The Industrial Relations Code absorbed the Industrial Disputes Act, 1947, and the Standing Orders Act, 1946. The Occupational Safety, Health and Working Conditions Code took in the Factories Act, 1948, and the Contract Labour Act, 1970.

The provision with the widest payroll effect is the definition of wages in Section 2(y) of the Code on Wages. Basic pay, dearness allowance, and retaining allowance together must be at least 50% of total remuneration. That's three components measured against total remuneration, not basic pay measured against CTC. The distinction matters when you restructure a salary, because it changes the base for provident fund, gratuity, and bonus.

1. West Bengal Professional Tax

West Bengal levies Professional Tax under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, and its rules of the same year. It's deducted monthly against the employee's monthly salary.

The annual return is filed on Form III by 15 May. Registration and filing happen online, through the state Professional Tax portal.

If you're running payroll across states, note that these slabs are read against monthly salary. Some states set their Professional Tax bands against annual income instead, and applying an annual band to a monthly figure produces a deduction that's wrong by an order of magnitude.

2. West Bengal Labour Welfare Fund

The fund operates under the West Bengal Labour Welfare Fund Act, 1974, and its 1976 Rules, and applies to establishments employing 10 or more people.

Deduction is taken against the register as at 30 June and 31 December, and remitted by 15 July and 15 January. The employer share is ten times the employee share, which is unusual and easy to get wrong if your payroll is configured on the assumption that the employer pays a small multiple.

The Act excludes people employed in a managerial or supervisory capacity who draw wages above the statutory threshold.

3. West Bengal Shops and Commercial Establishments Act

Registration under the West Bengal Shops and Commercial Establishment Act, 1963 applies at 20 or more workers.

The leave structure is where people get it wrong. Sick leave here is on half pay, not full pay, and it accumulates to 56 days. Casual leave doesn't carry forward at all. A leave policy copied from another state will usually be wrong on both counts.

Renewal is a live obligation. Unlike some states that have moved to a registration valid until cancelled, West Bengal still runs a three-year cycle with a 30-day window after expiry. A lapsed registration is a common finding in inspections.

4. West Bengal Minimum Wages

West Bengal revised minimum rates effective 1 July 2026. Rates are split across two zones, and the table below covers the shops and establishments schedule.

Two cautions. First, these rates cover shops and establishments only; West Bengal notifies separate schedules for other employments, including a distinct set for security services, so check the schedule that matches your activity rather than applying this table across the board. Second, West Bengal revises in January and July, so a July revision is normal, and the next one is due in January.

Central Laws Applicable in West Bengal

• Provident Fund: 12% employee and 12% employer on basic pay and dearness allowance, split 3.67% to EPF and 8.33% to EPS, plus administrative charges and EDLI. The ECR is filed by the 15th of the following month.
• ESIC: 0.75% employee and 3.25% employer, for employees within the wage ceiling, due by the 15th of the following month.
• Bonus: 8.33% to 20%, payable within 8 months of the financial year end.
• Gratuity: after 5 years of continuous service. The one-year rule applies to fixed-term employment, not permanent staff.
• Maternity benefit: 26 weeks for the first two children, 12 weeks thereafter.

The zone split is the practical issue for most employers here. Kolkata and the surrounding urban area sit in the higher zone; district locations sit in the lower one. If you run a Kolkata head office with staff at a plant or branch outside the metropolitan area, you're applying two different minimum wage tables to the same payroll, and the difference is roughly ₹800 to ₹1,000 a month at every skill level.

Professional Tax and the Labour Welfare Fund apply uniformly across the state, so the zone question affects wages only.

If you employ people in West Bengal and aren't certain whether your sick leave is being run on half pay, or whether your branch staff are on the right wage zone, those are the two things worth checking first. Both are common, and both are straightforward to verify.

Is Professional Tax applicable in West Bengal?

Yes. It's deducted monthly, with nil tax up to ₹10,000 a month, rising in bands to ₹200 a month above ₹40,000. The annual return is Form III, due 15 May.

What is the Labour Welfare Fund contribution in West Bengal?

₹3 from the employee and ₹30 from the employer, ₹33 in total per employee, half-yearly. It applies at 10 or more employees, and is taken against the register at 30 June and 31 December.

Does a West Bengal shop registration need renewing?

Yes, every three years, with an application due within 30 days after expiry. This differs from states that have moved to a certificate valid until cancelled.

How much sick leave is required in West Bengal?

14 days on half pay, accumulating to 56 days. Casual leave is 10 days on full pay and doesn't accumulate. Privilege leave is 14 days on full pay, accumulating to 28.

What are the minimum wages in West Bengal?

From 1 July 2026, for shops and establishments: unskilled workers earn ₹10,558 in Zone A and ₹9,760 in Zone B, rising to ₹14,054 and ₹12,990 for highly skilled workers. Other scheduled employments have their own rates.

Has West Bengal issued rules under the Labour Codes?

No. It's currently the only state with no rules published under any of the four Codes. Central rules apply in the meantime, and the position is worth monitoring.

How does Niyuk handle West Bengal compliance?

Niyuk runs the monthly Professional Tax deduction and the Form III return, the half-yearly Labour Welfare Fund remittance, Shops Act registration and its three-year renewal, PF and ESIC filings, and the zone-correct minimum wage check against your salary structure at each revision.