West Bengal Labour Law Compliance Guide for Employers, 2026 Edition

Last Updated on November 6, 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. If you are new to the basics, start with what statutory compliance in HR means.

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, and the employer pays the tax deducted within 21 days after each month ends.

The salary slabs changed from 1 October 2026. The State amended the Act in August 2026, and the Finance Department published the new schedule on 18 August 2026 (notifications 1406-F.T. and 1407-F.T.). Salaries for October 2026 onwards use these slabs:

Salaries up to September 2026 used the earlier schedule below. Use it only for arrears or corrections for those months:

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.

Deduction is taken against the register as at 30 June and 31 December, and remitted online by 15 July and 15 January. The current amounts were notified on 19 November 2024 (Kolkata Gazette, 2 December 2024), effective from 1 January 2024. 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.

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.

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.

What counts: compare only the basic wage plus the dearness or special allowance with the minimum. HRA, conveyance, overtime and bonus are paid on top and do not help you meet it.

Worked example: a 10-person team in Kolkata

Six unskilled, three semi-skilled and one skilled employee in Kolkata, all paid exactly the minimum:

For one unskilled employee on ₹10,558: PF ₹1,267 each from employee and employer (12%, wages below the ₹25,000 PF ceiling) and ESIC ₹80 (employee) and ₹344 (employer). That leaves a take-home of about ₹9,211 before professional tax, and costs you about ₹12,169 a month. PF becomes compulsory at 20 employees and ESIC at 10 in notified areas.

Minimum wage rules small employers miss in West Bengal

• 48-hour week: the rates assume an 8-hour day and up to 48 hours a week. Extra hours and rest-day work are paid at twice the ordinary rate.
• Contractors’ staff: workers supplied by a contractor are covered and must get at least the same rate.
• Equal pay: men and women doing the same work must be paid the same wage.

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

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. For salaries from 1 October 2026, tax is nil up to ₹20,000 a month, then ₹100, ₹140 and ₹170, rising to ₹208 a month above ₹1 lakh. The employer pays within 21 days after each month. 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.

How do the 2026 changes affect salary structures in West Bengal?

Two changes matter for payroll. Under the Code on Wages, basic pay, dearness allowance and retaining allowance together must be at least 50% of total remuneration, which changes the base for provident fund, gratuity and bonus. And professional tax uses new monthly slabs for salaries from 1 October 2026: nil up to ₹20,000, then ₹100, ₹140 and ₹170, rising to ₹208 a month above ₹1 lakh.

More guides: Statutory compliance guide library