Labour Welfare Fund in India and its Rates(LWF)

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What is Labour Welfare Fund?

Labour welfare fund is a mandatory contribution managed by individual state authorities. The State Labour Welfare Board sets the applicability limits, rates and frequency of the contribution for any establishments.

The contribution and periodicity of remittance differ from state to state. In some states, the periodicity is yearly and in some states, it is contributed on a half-yearly based. The detailed list of applicable states along with rates and slab is listed below.

What is the benefit of LWF contribution?

This act was introduced to fund the activities to promote welfare and standard of living among the labour in the state, like ;
a) Sport Club, so employees and their family member can avail the facilities with free of cost,
b) Community and social education centres including reading rooms and libraries,
c) Excursions, tours and holiday homes,
d) Entertainments and other forms of recreation,
e) Corporate activities of a social nature,

LWF's Applicability?

Registration is mandatory once the total number of employees count as per applicability as defined under state-specific rules. LWF is applicable to only a few states in India which is listed below based on employee count.

When a new branch office is opened in any other states, and where the LWF act is applicable, then registration is mandatory as per state applicability limit. But if this branch is in the same state then no separate registration is required

How to register for LWF?

The Registration process differs from state to state. It happens online without any physical document submission, but for a few state manual intervention with concern authorities is still required.

The LWF manual registration process is a bit complicated where the document requirement dealing with LWF officer varies statewide.

How to deduct LWF from salary?

LWF deduction is based on the rates as per applicable under state rules, which is listed below. LWF deduction is managed into two parts, 'LWF Employee Contribution' and 'LWF Employer Contribution'. The employee part is deducted from salary. The deduction will be monthly, on half yearly, or annual based on state act.

The deductions in some states are based on salary range or designation of employees, which is listed below.

How to make LWF Payment?

The payment process is online for some states which are done through registered employer login. For those where no option of online payment is available, it should be managed manually filled challan and forms as per state prescribed.

How to file LWF Returns?

States where manual challan is required, return filing is not applicable for any establishments, but states where the online process is applicable, there the detailed list of the applicable employees should be uploaded first and then the payment challan is generated based on active employee count with the portal.

Consequences if Labour Welfare Fund registration is not taken and liability is not paid?

Will be liable to a penalty and interest for the period during which remains unregistered and unpaid
The officials have the power to recover such amount along with applicable penalty and interest from the assets of such defaulter. Moreover, they can attach a bank account. In serious cases, the prosecution case also can be filed

LWF applicable states in India and its Rates

Click on the buttons inside the tab menu:..........Slabs last updated on 01/07/2023 - Haryana Slab changed wef 01-01-2023

Labour Welfare Fund not applicable states in India

1. Andaman and Nicobar Islands

2. Arunachal Pradesh

3. Assam

4. Bihar

5. Dadra and Nagar Haveli

6. Daman and Diu

7. Himachal Pradesh

8. Jammu Kashmri

9. Jharkhand

10. Ladakh

11. Lakshadweep

12. Manipur

13. Meghalaya

14. Mizoram

15. Nagaland

16. Puducherry

17. Rajasthan

18. Sikkim

19. Tripura

20. Uttar Pradesh

21. Uttarakhand

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