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Labour Law Compliance · Pan-India
State Guide · Andhra Pradesh · South India

Minimum Wages, PF, ESI & Professional Tax in Andhra Pradesh

What an employer in Andhra Pradesh 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 levelAndhra Pradesh (per month)Central sphere rate
Unskilled₹14,249₹20,358
Semi-skilled₹15,249₹22,568
Skilled₹16,249₹24,804
Highly skilled₹16,748₹26,910

The second column is the Central Government (central sphere) rate for the same skill level — 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.

Statutory position in Andhra Pradesh
Professional TaxApplicable — Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987, capped at ₹2,500/year.
Shops & Establishments ActAndhra Pradesh Shops and Establishments Act, 1988.
Labour Welfare FundApplicable — Andhra Pradesh Labour Welfare Fund Act, 1987.
PF (EPFO, central)12% employee / 12% employer (3.67% EPF + 8.33% EPS) on Basic + DA, capped at a ₹15,000/month wage ceiling — 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.
GratuityPayment of Gratuity Act, 1972 — 15 days' wages per completed year after 5 years' service; applies to establishments with 10 or more employees in Andhra Pradesh as elsewhere.

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

Questions employers in Andhra Pradesh ask

What is the minimum wage in Andhra Pradesh in 2026?

As notified with effect from Oct 1, 2025, the monthly minimum wage in Andhra Pradesh is ₹14,249 for unskilled work, ₹15,249 for semi-skilled work and ₹16,249 for skilled work, rising to ₹16,748 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 Andhra Pradesh?

Applicable — Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987, capped at ₹2,500/year.

Which Shops and Establishments Act applies in Andhra Pradesh?

Andhra Pradesh Shops and Establishments Act, 1988.

Is Labour Welfare Fund contribution required in Andhra Pradesh?

Applicable — Andhra Pradesh Labour Welfare Fund Act, 1987.

Do PF and ESI rates change from state to state?

No. EPF at 12% employee and 12% employer on Basic + DA (₹15,000 wage ceiling) and ESI at 0.75% employee and 3.25% employer (gross up to ₹21,000) are central schemes and apply identically in Andhra Pradesh 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 Andhra Pradesh
Run the numbers for Andhra Pradesh
Other states in South India