What is the professional tax slab in Gujarat?
Professional tax in Gujarat comes under the Gujarat State Tax on Professions, Trades, Callings and Employment Act, 1976. Within Ahmedabad city limits, the Amdavad Municipal Corporation (AMC) collects it on behalf of the state. Rates for salaried employees, in force since 1 April 2022:
| Monthly salary | Professional tax per month |
|---|---|
| Below ₹12,000 | Nil |
| ₹12,000 and above | ₹200 |
The employer deducts it from salary each month and pays it to the AMC (or the state, outside municipal limits). Separately, companies, factory owners and partnership firms in Ahmedabad pay their own professional tax of ₹2,000 a year, due before 30 September.
How much is the Gujarat Labour Welfare Fund?
The Gujarat Labour Welfare Fund is collected every six months. Since December 2016, each employee pays ₹6 and the employer pays ₹12 per collection, so ₹18 in total per employee.
What are the PF contribution rates?
Provident Fund applies to establishments with 20 or more employees.
- Employee
- 12% of basic wage plus dearness allowance (DA)
- Employer
- 12% of basic wage plus DA, split into 8.33% to the pension scheme (EPS) and 3.67% to the provident fund (EPF)
- Extra employer charges
- 0.5% admin charge and 0.5% for EDLI insurance
- Wage ceiling
- ₹15,000 a month for mandatory coverage
What are the ESI contribution rates?
ESI covers employees earning up to ₹21,000 a month (₹25,000 for persons with disabilities).
- Employee
- 0.75% of wages
- Employer
- 3.25% of wages
Worked example: an employee in Ahmedabad earning ₹18,000 a month
Assume gross wages of ₹18,000, basic wage of ₹10,000, and that the employer is covered by PF and ESI.
| Deduction | Employee pays | Employer pays |
|---|---|---|
| Professional tax | ₹200 | — |
| PF (12% of ₹10,000) | ₹1,200 | ₹1,200 |
| ESI (on ₹18,000) | ₹135 | ₹585 |
| Gujarat LWF (only in the collection months) | ₹6 | ₹12 |
PF admin and EDLI charges (0.5% each) are extra for the employer.
How Starcore helps
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FAQ
Is professional tax deducted for salaries below ₹12,000 in Gujarat?
No. It is nil below ₹12,000 a month.
How often is Gujarat LWF paid?
Twice a year.
Does PF apply to a company with 12 employees?
The PF Act applies to establishments with 20 or more employees; smaller ones may still register voluntarily.
Disclaimer — rates change. This guide is for information only and is not legal or tax advice; confirm with your CA or the official portals before filing.
Last updated 8 October 2026 · Verified against AMC, Gujarat Labour Welfare Board, ESIC and EPFO.Sources
Verified 7 October 2026 against official pages: PT slab and the AMC employer rate (AMC), LWF amounts (Gujarat Labour Welfare Board), ESI rates and wage ceiling (ESIC), PF rates and wage ceiling (EPFO).