The Labour Welfare Fund (LWF) is an Indian statutory contributing fund that is managed by the respective state government agencies. The frequency and amount of the LWF contribution are set by the state Labour Welfare Board. States vary in this regard.
Employers and employees both make contributions to the LWF on behalf of their employees. The LWF receives an annual contribution from some states and a half-yearly contribution from others.
What is the Labour Welfare Fund (LWF)?
Social security and employee welfare are guaranteed by the Labour Welfare Fund (LWF) program. The LWF was established to raise the living and working circumstances of laborers under the Industrial Disputes Act of 1947. By offering suitable workers and their dependents access to healthcare, housing, education, wholesome food, and recreational opportunities, it achieves this goal.
Since this statute is state-specific, the relevant state government entities are in charge of administering it. According to the rules in each state, the deduction cycle may be monthly, half-yearly, or annual. This fund is funded by contributions from both the employer and the employee. State legislatures decide on the contribution rates.
Applicability of the Labour Welfare Fund
The Act concerning the Labour Welfare Fund does not apply to every type of employee in a company. The Labour Welfare Fund Act of each state determines whether the LWF is applicable or not. The number of employees or workers, their titles, and the wages they make determine its application.
Generally, the LWF applies to factory workers earning a specific wage, establishments covered under the Shop and Establishment Act, transport services establishments, plantation workers, societies, etc.
Every state has its own regulations and some states do not even collect LWF. You may see a summary of the states that collect and those that don’t collect LWF.
List of States that do not collect LWF:
| Arunachal Pradesh | Andaman and Nicobar Island | Dadra and Nagar Haveli | Jammu and Kashmir |
| Assam | Bihar | Jharkhand | Ladakh |
| Lakshadweep | Manipur | Meghalaya | Mizoram |
| Nagaland | Puducherry | Rajasthan | Sikkim |
| Himachal Pradesh | Tripura | Uttar Pradesh | Uttarakhand |
List of States that collect LWF:
| Andhra Pradesh | Goa, Diu and Daman | Madhya Pradesh | Punjab |
| Chandigarh | Kerala | Karnataka | Tamil Nadu |
| Chhattisgarh | Gujarat | Maharashtra | Telangana |
| Delhi | Haryana | Odisha | West Bengal |
LWF Scheme in different states
The state governments oversee the Labour Welfare Fund, each state has different deduction periods. The amount that will be deducted for the half-yearly deduction cycles depends on each employee's wage threshold.
This is a comprehensive list of the deductions that are unique to each state, the employees who qualify, how often they are taken out, when the payments are due to the government, and the documents needed to file returns.
- Andhra Pradesh
Applicable employees: All employees except those who are employed in a managerial capacity and part-time position.
Employee contribution: Rs.30Employer contribution: Rs. 70
| Deduction frequency | Deduction date | Submission deadline |
| Annual | 31st December | 31st January |
- Chandigarh
Applicable employees: All employees earning up to Rs. 15,000 per month.
Employee contribution: Rs.5
Employer contribution: Rs. 20
| Deduction frequency | Deduction date | Submission deadline |
| Monthly | Last day of each month | 15th October and 15th April |
- Chhattisgarh
Applicable employees: All employees except those working in a managerial or administrative capacity or employed in a supervisory capacity earning more than Rs. 10,000 per month.
Employee contribution: Rs.15
Employer contribution: Rs. 45
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Delhi
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 2,500 per month.
Employee contribution: Rs.0.75
Employer contribution: Rs. 2.25
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Goa, Diu & Daman
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 1,600 per month.
Employee contribution: Rs.60
Employer contribution: Rs.180
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Gujarat
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 3,500.
Employee contribution: Rs.6
Employer contribution: Rs.12
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Haryana
Applicable employees: All employees employed directly by the principal employer, including contractors. Each employee shall contribute an amount equal to 0.2% of their salary or Rs. 25 to the fund every month. The employer will contribute twice as much as the employee does.
Employee contribution: Rs.31
Employer contribution: Rs.62
| Deduction frequency | Deduction date | Submission deadline |
| Monthly | Last date of each month | 15th October and 15th April |
- Karnataka
Applicable employees: All employees who are employed for salary to do any work, skilled or unskilled, manual or clerical, in an organization.
Employee contribution: Rs.20
Employer contribution: Rs.40
| Deduction frequency | Deduction date | Submission deadline |
| Monthly | Last date of each month | 15th October and 15th April |
- Kerala
Applicable employees: All employees under the purview of the Kerala for firms under the Shops and Establishment Act
Employee contribution: Rs.50
Employer contribution: Rs.50
| Deduction frequency | Deduction date | Submission deadline |
| Monthly | Last date of each month | 5th of every month |
Applicable employees: All employees under the purview of the Kerala for all other establishments
Employee contribution: Rs.45
Employer contribution: Rs.45
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Madhya Pradesh
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 10,000 every month.
Employee contribution: Rs.10
Employer contribution: Rs.30
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Maharashtra
Applicable employees: All employees except those working in a managerial or supervisory capacity earning up to Rs. 3,000 per month.
Employee contribution: Rs.10
Employer contribution: Rs.30
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 3,000 per month.
Employee contribution: Rs.12
Employer contribution: Rs.36
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Odisha
Applicable employees: All employees except those working in a managerial or supervisory capacity within an organization.
Employee contribution: Rs.10
Employer contribution: Rs.20
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Punjab
Applicable employees: Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment.
Employee contribution: Rs.5
Employer contribution: Rs.20
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
- Tamil Nadu
Applicable employees: All employees except those working in a managerial or supervisory capacity earning above Rs. 15,000 per month.
Employee contribution: Rs.10
Employer contribution: Rs.30
| Deduction frequency | Deduction date | Submission deadline |
| Yearly | 31st December | 31st January |
- Telangana
Applicable employees: All employees except those working in a managerial or supervisory capacity earning up to Rs. 1,600 per month.
Employee contribution: Rs.2
Employer contribution: Rs.5
| Deduction frequency | Deduction date | Submission deadline |
| Yearly | 31st December | 31st January |
- West Bengal
Applicable employees: All employees except those working in a managerial or supervisory capacity earning more than Rs. 1,600.
Employee contribution: Rs.3
Employer contribution: Rs.15
| Deduction frequency | Deduction date | Submission deadline |
| Half-yearly | 30th June and 31st December | 15th July and 15th January |
No Comments