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.
What this means for Tamil Nadu employers:
- The Codes now sit above many existing Tamil Nadu state laws. Several state acts (Shops & Establishments, Professional Tax administration, Labour Welfare Fund) continue to operate, but increasingly within the framework of the Codes.
- "Wages" is now defined uniformly: basic + DA + retaining allowance must be 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; some Tamil Nadu state-level rules are still being aligned. During this transition, employers should comply with both the existing Tamil Nadu acts and the new Codes, we track both so you stay covered.
Content current as of June 2026. Labour Code rules are evolving; we update these guides as new notifications are issued.
Tamil Nadu-Specific Labour Laws
1. Professional Tax in Tamil Nadu (Greater Chennai Corporation rates)
Important: professional tax in Tamil Nadu is levied by the local body, not by the state. There is no single state-wide Tamil Nadu rate. The slabs below are those of the Greater Chennai Corporation. If your establishment is outside Chennai, confirm the rates with your own municipal corporation, municipality or town panchayat before you deduct, because they differ.
| Half-Yearly Salary | PT per Half-Year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 to ₹30,000 | ₹135 |
| ₹30,001 to ₹45,000 | ₹315 |
| ₹45,001 to ₹60,000 | ₹690 |
| ₹60,001 to ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
- Maximum annual PT: ₹2,500
- Filing frequency: Half-yearly (unlike most states which are monthly)
- Due dates: 30th September (for April-September) and 31st March (for October-March)
2. Tamil Nadu Labour Welfare Fund (TNLWF)
- Employee contribution: ₹20 per year (₹10 per half-year)
- Employer contribution: ₹40 per year per employee (₹20 per half-year)
- Due dates: Unpaid Accumulation Fund, January and July
3. Tamil Nadu Shops and Establishments Act, 1947
- Registration within 30 days
- Working hours: 8 hours/day, 48 hours/week
- Overtime at double the rate
- Weekly holiday mandatory
- Leave provisions per TN Shops Act
- IT/ITES exemptions available on working hours
Central Laws in Tamil Nadu
- EPF: 12%+12% employer/employee
- ESIC: 3.25% + 0.75% for eligible employees
- Payment of Bonus: 8.33% to 20%
- Payment of Gratuity: After 5 years
- Minimum Wages: Tamil Nadu zone-wise rates
Tamil Nadu Compliance Calendar
| Compliance | Frequency | Due Date |
|---|---|---|
| PF Payment | Monthly | 15th of following month |
| ESIC Payment | Monthly | 15th of following month |
| Tamil Nadu PT | Half-yearly | 30th Sep & 31st Mar |
| TDS Payment | Monthly | 7th of following month |
| TNLWF | Half-yearly | Jan & Jul (Unpaid Accumulation) |
Industries Served in Tamil Nadu
- Automotive: Chennai (Detroit of India), Sriperumbudur, Oragadam
- IT & Software: OMR IT Corridor, Tidel Park, SIPCOT IT Park
- Manufacturing: Ambattur, Guindy, Hosur industrial areas
- Textiles: Coimbatore, Tirupur textile clusters
- Healthcare: Chennai's medical tourism corridor
FAQs, Tamil Nadu Labour Compliance
How often is PT filed in Tamil Nadu?
Unlike most states, Tamil Nadu Professional Tax is filed half-yearly, by 30th September (for April-September period) and 31st March (for October-March period). This is unique to Tamil Nadu's PT structure.
What are the TNLWF contribution rates?
Tamil Nadu Labour Welfare Fund requires ₹40/year per employee from the employer and ₹20/year from the employee, paid in two half-yearly instalments.
Do Chennai IT companies get compliance exemptions?
Tamil Nadu provides working hour and night shift exemptions for IT/ITES companies. However, all statutory contributions (PF, ESIC, PT, TDS) remain mandatory.
What is the minimum wage in Tamil Nadu?
Tamil Nadu minimum wages vary by industry and zone. Chennai zone has the highest rates. The state government issues notifications for different scheduled employments.
How does HRTailor handle TN compliance?
HRTailor manages Tamil Nadu's unique half-yearly PT filing, TNLWF contributions, Shops Act compliance, and all central law filings. Our system automatically applies TN-specific rules.
Tamil Nadu Compliance Made Easy
HRTailor manages your complete TN labour law compliance.
Call: +91-22-4896-7640