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Labour Law Compliance · Pan-India
State Guide · Chandigarh · North India

Minimum Wages, PF, ESI & Professional Tax in Chandigarh

What an employer in Chandigarh actually has to pay and file in 2026 — the notified minimum wage by skill level, Professional Tax, Labour Welfare Fund, the Shops & Establishments Act that applies here, and the central PF and ESI rules that do not change by state.

Minimum wage · in force from Oct 1, 2025 · page updated 28 August 2026
Skill levelChandigarh (per month)Central sphere rate
Unskilled₹14,562₹21,840
Semi-skilled₹15,012₹24,258
Skilled₹15,237₹26,624
Highly skilled₹15,637₹28,886

The second column is the Central Government (central sphere) rate for the same skill level (Area A, construction, sweeping and loading; Labour Bureau orders of 30-09-2026, in force 1 October 2026 to 31 March 2027) — what applies to establishments under central authority such as railways, mines, ports, banking and oilfields. A state establishment pays the state figure; the two are shown side by side because contractors working on central-sphere sites in this state are paid on the central rate. Figures are read from the state's own notification and re-checked as each revision is published.

Under verification: Legacy CTC calculator had ₹200/month entered for Chandigarh; Chandigarh does not levy Professional Tax, so this is treated as a data-entry error pending verification — confirm no UT-level tax has since been introduced before trusting either figure.

Statutory position in Chandigarh
Professional TaxNot applicable — not levied in this Union Territory.
Shops & Establishments ActPunjab Shops and Commercial Establishments Act, 1958 (as extended to Chandigarh).
Labour Welfare FundNo state-wide Labour Welfare Fund Act in force.
PF (EPFO, central)12% employee / 12% employer (3.67% EPF + 8.33% EPS) on Basic + DA, capped at a ₹25,000/month wage ceiling from 17 September 2026 (S.O. 5109(E); ₹15,000 before that) — identical in every state.
ESI (ESIC, central)0.75% employee / 3.25% employer where gross wages are ₹21,000/month or less — identical in every state.
GratuityCode on Social Security, 2020, Chapter V (in force from 21 November 2025; it replaced the Payment of Gratuity Act, 1972) — 15 days' wages per completed year after 5 years' continuous service; a fixed-term employee is paid pro rata after one year. Wages are counted on the Code's definition, so allowances above 50% of pay are added back. Applies to establishments with 10 or more employees in Chandigarh as elsewhere.

Stated under the four Labour Codes and this Union Territory's own legislation. Official portals for registration and filing are listed below.

Questions employers in Chandigarh ask

What is the minimum wage in Chandigarh in 2026?

As notified with effect from Oct 1, 2025, the monthly minimum wage in Chandigarh is ₹14,562 for unskilled work, ₹15,012 for semi-skilled work and ₹15,237 for skilled work, rising to ₹15,637 for highly skilled work. Rates are revised twice a year in most states when the variable dearness allowance is refixed.

Is Professional Tax payable in Chandigarh?

Not applicable — not levied in this Union Territory.

Which Shops and Establishments Act applies in Chandigarh?

Punjab Shops and Commercial Establishments Act, 1958 (as extended to Chandigarh).

Is Labour Welfare Fund contribution required in Chandigarh?

No state-wide Labour Welfare Fund Act in force.

Do PF and ESI rates change from state to state?

No. EPF at 12% employee and 12% employer on Basic + DA (₹25,000 wage ceiling from 17 September 2026 under S.O. 5109(E); ₹15,000 before that) and ESI at 0.75% employee and 3.25% employer (gross up to ₹21,000) are central schemes and apply identically in Chandigarh and in every other state. Only minimum wages, Professional Tax, Labour Welfare Fund and the Shops and Establishments Act differ by state.

Official portals for Chandigarh
Run the numbers for Chandigarh
Other states in North India