What an employer in Tamil Nadu 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.
| Skill level | Tamil Nadu (per month) | Central sphere rate |
|---|---|---|
| Unskilled | ₹13,500 | ₹21,840 |
| Semi-skilled | ₹15,100 | ₹24,258 |
| Skilled | ₹16,600 | ₹26,624 |
| Highly skilled | ₹18,600 | ₹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.
| Professional Tax | Applicable — levied by local municipal bodies/corporations under state municipal law, capped at ₹2,500/year, collected half-yearly. |
| Shops & Establishments Act | Tamil Nadu Shops and Establishments Act, 1947. |
| Labour Welfare Fund | Applicable — Tamil Nadu Labour Welfare Fund Act, 1972. |
| 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. |
| Gratuity | Code 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 Tamil Nadu as elsewhere. |
Stated under the four Labour Codes and this state's own legislation. Official portals for registration and filing are listed below.
As notified with effect from Apr 1, 2025, the monthly minimum wage in Tamil Nadu is ₹13,500 for unskilled work, ₹15,100 for semi-skilled work and ₹16,600 for skilled work, rising to ₹18,600 for highly skilled work. Rates are revised twice a year in most states when the variable dearness allowance is refixed.
Applicable — levied by local municipal bodies/corporations under state municipal law, capped at ₹2,500/year, collected half-yearly.
Tamil Nadu Shops and Establishments Act, 1947.
Applicable — Tamil Nadu Labour Welfare Fund Act, 1972.
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 Tamil Nadu and in every other state. Only minimum wages, Professional Tax, Labour Welfare Fund and the Shops and Establishments Act differ by state.
