Businesses across Telangana are closely tracking the latest changes under the shop and establishment act telangana, especially with the confirmed 2026 updates now in effect. From revised working hours to mandatory holiday notifications, compliance under the Telangana Shops and Establishments Act has become a critical responsibility for employers, HR teams, and business owners.
For growing organizations, managing labour laws along with salaries is no longer limited to internal HR efforts. Many companies are now opting for outsource payroll services and professional payroll compliance services to stay aligned with statutory requirements, avoid penalties, and ensure smooth employee management under the updated regulations.
In this blog, we break down the confirmed 2026 updates related to the shop and establishment act telangana, including the new 10-hour workday rules, registration requirements, holiday lists, and key compliance obligations every employer must follow.
To avoid legal disputes and heavy penalties, businesses are prioritizing professional compliance management. In this blog, we’ll discuss the confirmed updates for Telangana Shops and Establishments in 2026, covering everything from the new 10-hour workday rules to the latest holiday notifications.
What are the Shops and Establishments Act in Telangana?
The Shops and Establishments Act, 1988 in Telangana are the primary law regulating work conditions in commercial entities. This includes everything from retail shops and restaurants to IT companies and theaters. The Act ensures employees receive fair working hours, timely wages, and necessary leaves, while employers get a clear legal framework to operate within.
Establishments Covered Under the Act:
- Retail shops and wholesale outlets
- IT and ITeS companies
- Hotels, restaurants, and cafes
- Theaters and public entertainment venues
- BPOs and back-office operations
Major 2026 Updates: Working Hours and Flexibility
One of the most significant confirmed updates is the shift in working hour flexibility. Under G.O. Rt. No. 282 (notified in late 2025 and active through 2026), the Government of Telangana has introduced reforms to boost the Ease of Doing Business (EoDB).
The 10-Hour Workday for Commercial Establishments
While the weekly limit remains capped at 48 hours, certain commercial establishments (excluding standard retail shops) are now permitted to extend daily working hours:
- Daily Limit: Up to 10 hours per day (previously 8 hours).
- Rest Intervals: A mandatory rest break of at least 30 minutes must be provided after 6 hours of continuous work.
- Spread-over: The total spread of work, including rest intervals, cannot exceed 12 hours on any given day.
- Overtime Cap: Overtime is permitted up to a maximum of 144 hours per quarter.
Mandatory Holidays for 2026
The Government of Telangana has officially released the list of National and Festival Holidays for 2026 for shops and establishments. Under Section 31 of the Act, employees are entitled to paid holidays. For the 2026 calendar year, some of the key notified holidays include:
| Holiday | Date in 2026 | Day |
|---|---|---|
| Sankranti/Pongal | 15th January | Thursday |
| Republic Day | 26th January | Monday |
| Ramzan (Eid-ul-Fitr) | 21st March | Saturday |
| May Day | 1st May | Friday |
| Telangana Formation Day | 2nd June | Tuesday |
| Independence Day | 15th August | Saturday |
| Gandhi Jayanthi | 2nd October | Friday |
| Next Day of Vijaya Dasami | 21st October | Wednesday |
| Christmas | 25th December | Friday |
Note: Employers must display this holiday list in a prominent place (Form 24) at the main entrance.
Registration and Fee Structure in 2026
Registration is mandatory for all new businesses within 30 days of opening. In Telangana, this process is fully digital through the Labour Department’s Online Service Portal.
Fee Details Based on Employee Count:
- 0 Employees: ₹100
- 1–5 Employees: ₹500
- 6–10 Employees: ₹1,000
- 11–20 Employees: ₹2,000
- 21–50 Employees: ₹5,000
- Above 100 Employees: ₹10,000 + ₹5,000 for every additional 50 persons.
Important: While the registration certificate itself doesn’t expire, an Annual Fee must be paid between November 1st and December 1st to keep it active for the following year.
Statutory Compliance Checklist for Telangana Employers
Staying compliant in 2026 requires being audit-ready at all times. Here is what you need to maintain:
- Form I: Integrated Annual Return (due by April 30, 2026).
- Registers: Maintain accurate Attendance, Wages, and Overtime registers.
- Name Board: Your establishment’s name board must be displayed in Telugu and English (with Telugu being prominent).
- Minimum Wages: Ensure compliance with the revised minimum wages effective from January 1, 2026.
Conclusion
Navigating the Telangana Shops and Establishments Act in 2026 requires a proactive approach. Between the new 10-hour workday flexibility and the updated holiday lists, there’s a lot for HR teams to track. Maintaining compliance isn’t just about avoiding fines; it’s about building a stable environment for your business to thrive.
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