Professional tax and labour welfare fund in Karnataka
The slabs, when employers have to pay, and the labour welfare fund, for anyone paying staff in Karnataka. Figures checked on 7 October 2026.
Recent change. From 1 April 2025, under the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025, salaries below ₹25,000 a month are exempt, and the February deduction rose to ₹300, making ₹2,500 a year.
Professional tax slabs
| Monthly salary | Tax a month |
|---|---|
| Below ₹25,000 | Nil |
| ₹25,000 and above | ₹200₹300 in February |
Paying and filing
- Employers deduct professional tax each month and pay it by the 20th of the following month.
- Employers register with the Commercial Taxes Department and file returns online.
Work it out
Gross salary for the month.
₹150 per employee, a year.
Deducted from December salary and paid to the Karnataka Labour Welfare Board by 15 January.
- Employee pays
- ₹50 a year
- Employer pays
- ₹100 a year
- Deducted from
- December salary
- Due by
- 15 January
Applies to establishments with 10 or more employees, from 7 January 2026.
Recent changes
- From 1 April 2025, under the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025, salaries below ₹25,000 a month are exempt, and the February deduction rose to ₹300, making ₹2,500 a year.
- From 7 January 2026, the labour welfare fund applies to establishments with 10 or more employees, down from more than 50.
Questions about Karnataka.
Employees earning ₹25,000 a month or more. The employer deducts it from salary and pays it to the state.
It depends on the slab, up to ₹2,500 a year at the highest salaries. The deduction is higher in February, which brings the year to exactly ₹2,500. No state can charge more than ₹2,500 a year.
Employers deduct professional tax each month and pay it by the 20th of the following month.
₹50 from the employee and ₹100 from the employer a year, deducted from December salary and paid by 15 January. Applies to establishments with 10 or more employees, from 7 January 2026.
Under the old regime, yes: professional tax paid is deducted from salary income, up to ₹2,500 a year. The new regime does not allow it.
Sources
Checked on 7 October 2026. Rates change by notification, so confirm before you file.
Other states
Every state's rules, applied for you.
PayLoom holds statutory rules per state with effective dates. Professional tax reads each employee's work location and that state's slabs, and the welfare fund is deducted in the right months without anyone remembering it.
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