Gujarat Professional Tax
| Monthly salary | PT a month |
|---|---|
| Below ₹12,000 | Nil |
| ₹12,000 and above | ₹200 |
PT is deducted from salary and paid to the state by the employer.
Gujarat Labour Welfare Fund
| Contribution | Amount | When |
|---|---|---|
| Employee | ₹6 | June and December |
| Employer | ₹12 | June and December |
Over a year, each employee pays ₹12 and the employer pays ₹24 for each employee.
Worked example
| Monthly salary | PT a month | PT a year |
|---|---|---|
| ₹11,500 | Nil | Nil |
| ₹12,000 | ₹200 | ₹2,400 |
| ₹35,000 | ₹200 | ₹2,400 |
Gujarat PT has one slab, so anyone at ₹12,000 or more pays the same ₹200. For LWF, take a company with 40 employees, all covered: in June it deducts ₹240 from employees (40 × ₹6) and adds ₹480 of its own (40 × ₹12), ₹720 in all. December is the same.
Common mistakes
- Deducting PT from salaries below ₹12,000.
- Deducting LWF every month instead of only in June and December.
- Deducting the employee's ₹6 and forgetting the employer's ₹12.
- Using the company's state for an employee whose PT and LWF follow another state. Set the state per employee where needed.
How HR Bingo handles it
Set the company's state in payroll settings (and per employee where needed). HR Bingo applies the PT slab on monthly gross and deducts LWF in June and December. Rates are kept with effective dates, so a change in slab applies from the right month.
Sources
Frequently asked questions
What is Professional Tax in Gujarat?
₹200 a month for monthly salary of ₹12,000 or more; nil below ₹12,000.
When is Gujarat LWF deducted?
Twice a year, in June and December: ₹6 from the employee and ₹12 from the employer.
How much Gujarat PT does an employee pay in a year?
₹2,400 (₹200 × 12) if their monthly salary is ₹12,000 or more every month.
How much LWF does an employer pay in Gujarat in a year?
₹24 for each employee: ₹12 in June and ₹12 in December.