Telangana Labour Law Compliance Guide for Employers, 2026 Edition
Telangana labour law compliance covers state-specific obligations including Professional Tax, Telangana Labour Welfare Fund, Shops and Establishments Act, and central laws for employers in Hyderabad, Warangal, Nizamabad, and across the state. This guide helps businesses navigate Telangana's regulatory framework to ensure full compliance and avoid penalties. If you are new to the basics, start with what statutory compliance in HR means.
Documents list, checklist and deadline calendar for Telangana employers.
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- Professional Tax: nil up to ₹15,000 a month, ₹150 or ₹200 a month above that, ₹2,500 a year at most
- Labour Welfare Fund: ₹2 from the employee and ₹5 from the employer a year, due 31 January
- Shops and Establishments: register within 30 days of starting
- Working hours: 48 hours a week; up to 8 hours a day in shops, and up to 10 hours a day in other commercial establishments since July 2025
On this page: Labour Code rules | State laws | Calendar | FAQs
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 Telangana employers:
- The Codes now sit above many existing Telangana 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 the Central Rules under them were notified on 8 May 2026. Telangana’s own State Rules can differ in detail, so check the latest Telangana notification before relying on a state-specific rule. During this transition, employers should comply with both the existing Telangana acts and the new Codes, we track both so you stay covered.
Two practical notes. State rules under the four codes are notified state by state; for a worked example of what notified rules change, see our Karnataka Labour Code state rules guide. And if you would rather not run payroll and attendance registers in-house, compare the top payroll outsourcing companies in India, or move to a cloud HRMS with an attendance module that keeps these records current automatically.
Last updated: 21 October 2026. Labour Code rules are evolving; we update these guides as new notifications are issued.
Telangana Labour Code Rules 2026: What Changes for Employers
The four Labour Codes apply across India, but each state notifies its own rules under them. For employers in Telangana, that means checking two things: the central Codes and the Telangana rules under each Code.
- Code on Wages: state rules on minimum wages, wage payment and bonus.
- OSH Code: state rules on registration, licences, working hours and welfare facilities.
- Industrial Relations Code: state rules on standing orders, layoffs and disputes.
- Social Security Code: state rules on social security schemes and welfare boards.
What to do now: review your payroll, contracts and registers against the Telangana rules as they are notified, and keep following the existing state acts until they are fully replaced. IT and ITES companies in Hyderabad should also check whether their existing exemptions continue under the new rules.
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 |
- Maximum annual PT: ₹2,500
- Monthly filing with Telangana Commercial Tax Department
- Payment through Telangana e-Seva or TGCT portal
2. Telangana Labour Welfare Fund
- Employee contribution: ₹2 per year
- Employer contribution: ₹5 per year per employee
- Due date: 31 January, annually
3. Telangana Shops and Establishments Act
- Registration within 30 days of commencement
- Working hours: 48 hours/week; 8 hours/day in shops, up to 10 hours/day in other commercial establishments (G.O.Rt.No.282, 5 July 2025)
- Overtime: Double the ordinary wage rate
- Leave: 15 days earned leave per year
- IT/ITES companies: Exemptions on working hours and women's night shifts
4. Telangana Minimum Wages
Telangana government sets minimum wages by zone and occupation. Zone I (Hyderabad and surrounding areas) has higher rates. Employers must ensure compliance with current minimum wage notifications.
Leave policy as per the Telangana Shops and Establishments Act
The Telangana Shops and Establishments Act, 1988 sets the minimum leave and working-hour rules for shops and commercial establishments in Telangana:
| Rule | Telangana Shops Act, 1988 |
|---|---|
| Earned leave | 15 days a year after 240 days of service in 12 months |
| Carry forward | Earned leave can be accumulated up to 60 days |
| Encashment | Every employee can encash 8 days of earned leave every year. Unused earned leave must be paid if the employee is discharged before taking it, or if leave applied for was refused and the employee then quits |
| Sick leave | Up to 12 days a year |
| Casual leave | Up to 12 days a year |
| Working hours | Up to 8 hours a day and 48 hours a week in shops (section 9). Commercial establishments other than shops may work up to 10 hours a day within 48 hours a week, under G.O.Rt.No.282 of 5 July 2025 |
| Overtime | Twice the ordinary rate of wages. In shops, overtime is limited to 6 hours a week, plus up to 24 hours a year for stock-taking and accounts with prior intimation to the Inspector. In other commercial establishments, up to 144 hours a quarter under the July 2025 order, with a rest break after 6 hours and a spread-over of no more than 12 hours a day |
These are the figures in the Act. The Telangana government has issued orders over the years that relax some rules for certain sectors, so check any order that applies to your business.
Central Laws in Telangana
- EPF: 12% + 12% for establishments with 20+ employees
- ESIC: 3.25% employer + 0.75% employee (employees ≤₹21,000/month)
- Bonus: 8.33% to 20% under Chapter IV of the Code on Wages 2019
- Gratuity: After 5 years, for establishments with 10+ 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
| Violation | Penalty |
|---|---|
| Late PT filing | 2% per month interest |
| Non-registration Shops Act | Fine up to ₹25,000 |
| Late PF payment | 12% p.a. interest + damages |
| Minimum wage violation | Fine up to ₹50,000 |
IT/ITES Exemptions in Telangana
- Flexible working hours for IT/ITES establishments
- Women night shift allowed with safety and transport provisions
- Overtime regulations modified for project-based work
- Special provisions under Telangana IT/ITES policy
FAQs, Telangana Labour Compliance
What is the PT rate in Telangana?
Telangana PT is ₹200/month for salaries above ₹20,000, ₹150 for ₹15,001-₹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 per year per employee (employer) and ₹2 per year (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. However, PF, ESIC, PT, and other statutory obligations remain the same.
What are the minimum wages in Telangana?
Telangana minimum wages vary by zone and occupation. The Hyderabad zone has higher rates. Current rates are notified by the Telangana Labour Department and revised periodically.
How does HRTailor handle Telangana compliance?
HRTailor manages complete Telangana compliance, PT filing, LWF contributions, Shops Act compliance, PF/ESIC, TDS, and bonus/gratuity. Our systems are configured for Telangana-specific rules and deadlines.
When do the new labour codes apply in Telangana?
The four Labour Codes have applied across India since 21 November 2025. Each state also notifies its own rules under the Codes, so Telangana employers must follow both the Codes and the state rules as they are notified. HRTailor tracks every Telangana notification and updates your compliance as rules change.
When is Telangana LWF payment due?
Telangana Labour Welfare Fund is paid once a year, by 31 January. The employee pays ₹2 and the employer pays ₹5 for each employee. HRTailor pays LWF on time as part of payroll.
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