Salary calculation in Uttar Pradesh follows the four national Labour Codes, with three things specific to the state: Uttar Pradesh charges no Professional Tax, its minimum wages differ for Noida–Ghaziabad, municipal corporation areas and other districts, and its own Labour Code rules are still in draft. This guide shows how a compliant salary structure is built for a private-sector employee in Uttar Pradesh in 2026 — Basic, allowances, PF on the new ₹25,000 ceiling, ESI and Gratuity — with a worked example you can reproduce in the salary breakup calculator.
To use it as an Uttar Pradesh salary calculator for your own pay, open the salary breakup calculator and select Uttar Pradesh as the state. It leaves out Professional Tax, checks your structure against the Labour Code 50% wage rule, and lets you download the result as a salary annexure. If you only need the final take-home figure, use the in-hand salary calculator.
Uttar Pradesh Salary Calculation at a Glance (2026)
| Item | Rule in Uttar Pradesh | Calculated on |
|---|---|---|
| Professional Tax | Not levied in Uttar Pradesh | — |
| Provident Fund | 12% employee + 12% employer; mandatory up to ₹25,000 wages | Wages |
| ESI | 0.75% employee + 3.25% employer, where wages are ₹21,000 or less | Wages |
| Gratuity | 4.81% of wages a month as an employer cost | Wages |
| Statutory bonus | 8.33%–20%, where wages are ₹21,000 or less | Wages (subject to the bonus ceiling) |
| Minimum wage | ₹12,356 to ₹16,868 a month by area and skill, from 1 April 2026 | Basic + DA |
| Income tax | National FY 2026-27 slabs; all UP cities at 40% for HRA in the old regime | Taxable salary |
How Salary Is Structured in Uttar Pradesh
Since the Labour Codes came into force on 21 November 2025, one definition of "wages" decides PF, ESI, Gratuity and bonus everywhere in India, including Uttar Pradesh. Wages are all your pay except the items the Code on Wages excludes — HRA, conveyance, employer PF, bonus, overtime, commission and a few others. If those exclusions add up to more than 50% of your total pay, the excess is added back to wages.
Core Salary Components
| Component | Purpose | Counts as wages? |
|---|---|---|
| Basic Salary | Foundation of the structure | Yes |
| Dearness Allowance (DA) | Cost-of-living adjustment | Yes |
| HRA | House rent support | No — excluded, but tested against the 50% limit |
| Conveyance allowance | Travel support | No — excluded, but tested against the 50% limit |
| Special / other allowance | Balancing component | Yes, unless it falls on the exclusion list |
| Gross Salary | Total earnings before deductions | Base for income tax only (no PT in UP) |
To see exactly how your own components split into wages and exclusions, run them through the salary breakup calculator; its "Total Statutory Wages" line shows the figure after any 50% add-back.
No Professional Tax in Uttar Pradesh
Uttar Pradesh does not levy Professional Tax on salaries. Unlike Maharashtra, Karnataka, Gujarat or Andhra Pradesh, there is no monthly PT deduction on a UP payslip. If one appears, check whether your payroll is set to another state — for example, a company registered in Maharashtra paying an employee who works in Noida.
Uttar Pradesh Minimum Wages 2026
Basic + DA must not fall below Uttar Pradesh's notified minimum wage for your area and skill category. The state's interim revision effective 1 April 2026 set three area tiers:
| Area | Unskilled (₹/month) | Semi-skilled (₹/month) | Skilled (₹/month) |
|---|---|---|---|
| Noida (Gautam Buddha Nagar) and Ghaziabad | 13,690 | 15,059 | 16,868 |
| Municipal corporation areas | 13,006 | 14,306 | 16,025 |
| Other districts | 12,356 | 13,591 | 15,224 |
The state described this as an interim increase, with a wage board expected to set long-term rates, so check the Uttar Pradesh Labour Department for any later revision before relying on these figures. Enter the applicable figure in the calculator's "State Min Wage" field so the structure is tested against it.
Provident Fund for Uttar Pradesh Employees
- Rate: 12% of wages from the employee and 12% from the employer; of the employer's share, 8.33% goes to the Employees' Pension Scheme and 3.67% to EPF.
- Ceiling: the EPF wage ceiling rose from ₹15,000 to ₹25,000 a month on 17 September 2026. Where the employer caps PF at the ceiling, the contribution is now up to ₹3,000 a month on each side.
- Coverage: employees with wages up to ₹25,000 in covered establishments now fall under mandatory PF, subject to the scheme's conditions.
- Base: wages under the Labour Codes — not Basic alone — so allowances above the 50% limit raise the PF base.
ESI in Uttar Pradesh
ESI applies where your wages are ₹21,000 a month or below (₹25,000 for employees with disabilities). The test is on statutory wages, not gross salary, so an employee with a higher gross can still be covered if their wages fall below the limit.
| Contribution | Rate (of wages) |
|---|---|
| Employee | 0.75% |
| Employer | 3.25% |
Coverage is fixed for each six-month contribution period (April–September and October–March), so a mid-period raise above the limit does not stop ESI until the period ends.
Statutory Bonus and Gratuity
- Statutory bonus is governed by the Code on Wages, 2019. It applies in establishments with 20 or more employees to those with wages of ₹21,000 a month or less, at 8.33% to 20%. Where the accounting year ends on 31 March, bonus for FY 2025-26 is due by 30 November 2026.
- Gratuity is provided at 4.81% of wages a month as an employer cost inside CTC. It is paid on leaving after five years of continuous service, or after one year, pro rata, for fixed-term employees.
Uttar Pradesh Salary Breakup Example — ₹50,000 Gross
Figures from the salary breakup calculator with the pay base set to Gross, its default structure and PF on the ₹25,000 ceiling. Uttar Pradesh adds no Professional Tax:
| Component | Monthly (₹) |
|---|---|
| Basic + DA | 26,500 |
| HRA | 13,250 |
| Conveyance allowance | 10,250 |
| Gross salary | 50,000 |
| Employer PF | 3,000 |
| Gratuity | 1,275 |
| CTC | 54,275 |
| Employee PF | − 3,000 |
| Professional Tax | Nil (not levied in UP) |
| Income tax (new regime) | Nil |
| In-hand salary | 47,000 |
Three Uttar Pradesh checks pass here. Basic + DA of ₹26,500 is well above the highest minimum wage of ₹16,868 (skilled, Noida–Ghaziabad). There is no Professional Tax, so in-hand is ₹200 higher than the same salary in a ₹200-PT state. And income tax is nil in the new regime, because annual taxable income of ₹5,25,000 (₹6,00,000 gross minus the ₹75,000 standard deduction) is inside the Section 87A rebate. ESI and statutory bonus do not apply, because wages of ₹26,500 are above ₹21,000.
HRA and Income Tax for Uttar Pradesh Employees
Income-tax slabs are national: FY 2026-27 slabs are unchanged under the Income-tax Act, 2025, which uses "Tax Year" and replaces Form 16 with Form 130 for this year's salary TDS certificate. For HRA exemption in the old regime, every Uttar Pradesh city is treated at 40% of Basic — including Noida and Ghaziabad. Being in the NCR does not make them metros for HRA; only Delhi itself is at 50%. HRA exemption is not available in the new regime.
Labour Code Rules in Uttar Pradesh
The Labour Codes have been in force nationally since 21 November 2025 and the central rules since 8 May 2026. At the state level, Uttar Pradesh had published draft rules under all four Codes but not final ones at our last check. The Centre expects every state to finish by 31 October 2026; until Uttar Pradesh notifies its final rules, existing state rules continue for state-level matters such as registers and minimum wage administration.
Step-by-Step: Calculating a UP Salary
- Fix Basic + DA at or above the Uttar Pradesh minimum wage for your area and skill.
- Add allowances to reach gross salary.
- Test the 50% rule: if HRA, conveyance and other exclusions exceed half of total pay, add the excess to wages.
- Calculate PF (12% of wages, capped at ₹25,000 if that is the policy), ESI and bonus where wages are ₹21,000 or less, and Gratuity at 4.81% of wages.
- Skip Professional Tax — Uttar Pradesh does not levy it.
- Deduct employee PF, ESI and income tax to reach in-hand salary.
- Add employer PF, ESI, bonus and Gratuity to gross to reach CTC.
The salary breakup calculator runs all seven steps at once and exports the result as an Excel or PDF salary annexure.
FAQ
How is salary calculated in Uttar Pradesh?
Basic + DA is set at or above the Uttar Pradesh minimum wage, allowances are added to reach gross salary, and PF, ESI, Gratuity and bonus are calculated on statutory wages under the Labour Codes. Income tax is then deducted to reach in-hand salary; there is no Professional Tax in Uttar Pradesh.
Is professional tax deducted in Uttar Pradesh?
No. Uttar Pradesh does not levy Professional Tax on salaries, so there is no PT deduction on a UP payslip.
What is the minimum wage in Uttar Pradesh in 2026?
From 1 April 2026, it ranges from ₹12,356 a month (unskilled, other districts) to ₹16,868 a month (skilled, Noida and Ghaziabad), with a middle tier for municipal corporation areas. The state described this as an interim revision, so check for later notifications.
Is Noida a metro city for HRA?
No. Noida, Ghaziabad, Lucknow and every other Uttar Pradesh city are treated at 40% of Basic for HRA exemption in the old regime. Only Delhi, among NCR cities, is at 50%.
Does every employee in Uttar Pradesh get PF and ESI?
PF is mandatory in covered establishments for employees with wages up to ₹25,000 a month, and optional above that. ESI applies where wages are ₹21,000 a month or less (₹25,000 for employees with disabilities). Both are tested on statutory wages, not gross salary.
Is this page about UP government or teacher salaries?
No. It covers private-sector salary structure under the Labour Codes. UP Government employees, including government teachers, are paid on the UP pay matrix; work out that pay with the UP government salary calculator.