Last Updated on August 28, 2026 by Abhijit Divekar
West Bengal is one of the more demanding states to run payroll in, and the reasons are specific rather than general. Professional tax applies and is deducted monthly. The Labour Welfare Fund runs half-yearly at a rate where the employer pays ten times the employee. Minimum wages are split across two zones, so the same job pays differently in Kolkata than in a district town. And West Bengal is currently the only state in the country that has not published rules under any of the four Labour Codes.
The 4 Labour Codes, What Changed (Effective 21 November 2025)
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, dearness allowance and retaining allowance together must be at least 50% of total remuneration. That is 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.
West Bengal has not notified rules under any of the four Codes. Every other state and union territory has at least draft rules published; West Bengal has none. A newly elected state government opened discussions in July 2026 and indicated drafting would begin, but nothing has been issued. Until it is, the central rules apply and the state Acts below continue to operate. This is worth watching if you employ people here, because the position could change with little notice.
West Bengal-Specific Labour Laws
1. West Bengal Professional Tax
West Bengal levies professional tax under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, with rules of the same year. It is deducted monthly against the employee’s monthly salary.
| Monthly salary | Professional tax per month |
|---|---|
| Up to ₹8,500 | Nil |
| ₹8,501 to ₹10,000 | Nil |
| ₹10,001 to ₹15,000 | ₹110 |
| ₹15,001 to ₹25,000 | ₹130 |
| ₹25,001 to ₹40,000 | ₹150 |
| Above ₹40,000 | ₹200 |
The annual return is filed on Form III by 15 May. Registration and filing are online through the state professional tax portal.
If you are running payroll across states, note that the slabs are read against monthly salary here. Some states set their professional tax bands against annual income instead, and applying an annual band to a monthly figure produces a deduction that is 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 ten or more people.
| Contribution | Amount | Frequency |
|---|---|---|
| Employee | ₹3 | Half-yearly |
| Employer | ₹30 | Half-yearly |
| Total per employee | ₹33 | Half-yearly |
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 you have configured a payroll 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.
| Requirement | Position |
|---|---|
| Registration threshold | 20 or more workers |
| Renewal | Every three years. Apply within 30 days after expiry |
| Daily hours | 9 hours |
| Weekly hours | 48 hours |
| Overtime rate | Twice the ordinary rate |
| Weekly off | One day per week |
| Privilege leave | 14 days on full pay, accumulating to 28 days |
| Casual leave | 10 days on full pay, not accumulable |
| Sick leave | 14 days on half pay, accumulating to 56 days |
The leave structure is the part people get wrong. Sick leave here is on half pay, not full pay, and it accumulates to 56 days. Casual leave does not 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 with effect from 1 July 2026. Rates are split across two zones, and the table below covers the shops and establishments schedule.
| Category | Zone A per month | Zone A per day | Zone B per month | Zone B per day |
|---|---|---|---|---|
| Unskilled | ₹10,558 | ₹406.08 | ₹9,760 | ₹375.38 |
| Semi-skilled | ₹11,615 | ₹446.73 | ₹10,733 | ₹412.81 |
| Skilled | ₹12,777 | ₹491.42 | ₹11,807 | ₹454.12 |
| Highly skilled | ₹14,054 | ₹540.54 | ₹12,990 | ₹499.62 |
Two cautions. First, these rates cover shops and establishments. 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 in West Bengal
- Provident fund: 12% employee and 12% employer on basic and dearness allowance, split 3.67% to EPF and 8.33% to EPS, plus administrative charges and EDLI. ECR 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 eight months of the end of the financial year.
- Gratuity: after five 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.
West Bengal Compliance Calendar
| Obligation | Frequency | Due |
|---|---|---|
| Professional tax deduction | Monthly | With payroll |
| Professional tax return (Form III) | Annual | 15 May |
| Labour Welfare Fund | Half-yearly | 15 July and 15 January |
| PF (ECR) | Monthly | 15th of the following month |
| ESIC contribution | Monthly | 15th of the following month |
| TDS on salary | Monthly | 7th of the following month |
| Shops Act registration renewal | Every 3 years | Within 30 days after expiry |
| Bonus payment | Annual | Within 8 months of financial year end |
Kolkata, Howrah and the districts
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 are 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.
FAQs, West Bengal Labour Compliance
Is professional tax applicable in West Bengal?
Yes. It is 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 ten 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 does not 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 ₹10,558 in Zone A and ₹9,760 in Zone B, rising to ₹14,054 and ₹12,990 for highly skilled. Other scheduled employments have their own rates.
Has West Bengal issued rules under the Labour Codes?
No. It is 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 HRTailor handle West Bengal compliance?
We run 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.
West Bengal Compliance Made Easy
If you employ people in West Bengal and are not 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.
About the rates on this page
Last checked August 2026. Professional tax, labour welfare fund and minimum wage figures change by state notification, sometimes mid-year and occasionally with retrospective effect. Treat what you read here as a guide, and confirm the current figure with the relevant state department before you run a payslip, make a deduction or file a return. Ask us to confirm it for your state if you would rather not chase it yourself.