The Labour Welfare Fund (LWF) is a statutory employee-welfare contribution framework in India. Unlike some central labour laws, LWF is primarily governed by state-specific Labour Welfare Fund Acts and Rules. Therefore, applicability, contribution amounts, employee/employer eligibility, payment frequency, and filing requirements can differ from one state to another.
Key Areas Covered
| Particular | Details |
|---|---|
| Purpose | Employee welfare and social-benefit activities |
| Governing law | State-specific Labour Welfare Fund Act/Rules |
| Applicability | Depends on the state and establishment category |
| Contributors | Generally employee and employer; some states also involve government contributions |
| Contribution | Varies by state |
| Payment frequency | Monthly, half-yearly, annual, or as prescribed by the respective state |
| Employer responsibility | Deduct employee contribution, add employer contribution, deposit within the prescribed time and maintain records |
| Coverage | Depends on the applicable state legislation and establishment/employee category |
Labour Welfare Fund – State-wise Compliance
There is no single uniform LWF contribution applicable throughout India. Employers should check the relevant state’s:
- Labour Welfare Fund Act
- Labour Welfare Fund Rules
- Applicability/coverage provisions
- Employee and employer contribution rates
- Deduction and deposit dates
- Registration requirements
- Returns and prescribed forms
- Penalties for delayed payment/non-compliance
Common Compliance Process
Employee eligibility → Calculate contribution → Deduct employee share → Add employer share → Deposit LWF → File return, where applicable → Maintain records
If you’re creating this for a payroll/compliance website, a useful structure would be:
“Labour Welfare Fund Act in India: State-wise LWF Rates, Applicability, Due Dates & Compliance Guide”
I can also prepare the complete state-wise Labour Welfare Fund Act table for all Indian states, including Act name, contribution amount, applicability, due date, return/form and official notification links.
Labour Welfare Fund act state wise shared the detail
Yes. Below is a state-wise Labour Welfare Fund (LWF) guide for India, covering the states/UTs where a standalone LWF contribution is currently reported. LWF is largely state-specific, so the Act, applicability threshold, contribution, deduction cycle and due date can differ significantly. The Ministry of Labour also recognizes state welfare funds such as those created under the Bombay/Maharashtra Labour Welfare Fund legislation.
Important: LWF rates and applicability can be amended by state notifications. The table below is a 2026 working reference and should be checked against the latest state notification before payroll processing.
Labour Welfare Fund – State-wise Details
| State / UT | Governing LWF law / framework | Employee contribution | Employer contribution | Frequency |
|---|---|---|---|---|
| Andhra Pradesh | Andhra Pradesh Labour Welfare Fund Act | ₹30/year | ₹70/year | Annual |
| Chandigarh | Punjab Labour Welfare Fund framework | ₹5/month | ₹20/month | Monthly |
| Chhattisgarh | Chhattisgarh Labour Welfare Fund Act | ₹15 | ₹45 | Half-yearly |
| Delhi | Delhi Labour Welfare Fund Act | ₹0.75 | ₹2.25 | Half-yearly |
| Goa | Goa Labour Welfare Fund Act | ₹60 | ₹180 | Half-yearly |
| Gujarat | Gujarat Labour Welfare Fund Act | ₹6 | ₹12 | Half-yearly |
| Haryana | Punjab Labour Welfare Fund framework as applicable in Haryana / state rules | ₹34/month* | ₹68/month* | Monthly |
| Karnataka | Karnataka Labour Welfare Fund Act, 1965 | ₹50/year | ₹100/year | Annual |
| Kerala | Kerala Labour Welfare Fund Act, 1975 | ₹50/month for shops & establishments; ₹45/half-year for other establishments | Matching contribution | Monthly / half-yearly |
| Madhya Pradesh | Madhya Pradesh Labour Welfare Fund Act | ₹10 | ₹30 | Half-yearly |
| Maharashtra | Maharashtra Labour Welfare Fund Act, 1953 | ₹25 | ₹75 | Half-yearly |
| Odisha | Odisha Labour Welfare Fund Act | ₹20 | ₹40 | Half-yearly |
| Punjab | Punjab Labour Welfare Fund Act | ₹5/month | ₹20/month | Monthly |
| Tamil Nadu | Tamil Nadu Labour Welfare Fund Act, 1972 | ₹20/year | ₹40/year | Annual |
| Telangana | Telangana Labour Welfare Fund Act / applicable state framework | ₹2/year | ₹5/year | Annual |
| West Bengal | West Bengal Labour Welfare Fund Act | ₹3 | ₹30* | Half-yearly |
*Rates and structures can vary according to the applicable state rules/notifications and establishment category. The 2026 consolidated remittance schedule reports these figures and applicability thresholds.
States where standalone LWF is generally reported as not applicable
The following states/UTs are currently reported as having no operative standalone LWF contribution for ordinary private establishments:
Arunachal Pradesh, Assam, Bihar, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Ladakh, Lakshadweep, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Rajasthan, Sikkim, Tripura, Uttar Pradesh and Uttarakhand, as well as Andaman & Nicobar Islands and Dadra & Nagar Haveli and Daman & Diu. This does not mean that employers have no other labour-welfare or social-security obligations in those jurisdictions.
Important State-wise Notes
1. Maharashtra
The applicable legislation is the Maharashtra Labour Welfare Fund Act, 1953. The Maharashtra Labour Department lists the Act in its current legislation repository.
The currently reported contribution is:
- Employee: ₹25
- Employer: ₹75
- Total: ₹100
- Contribution cycle: June and December
- Remittance: generally by 15 July and 15 January for the respective periods.
2. Tamil Nadu
Tamil Nadu has the Tamil Nadu Labour Welfare Fund Act, 1972. The Tamil Nadu Labour Welfare Board was constituted under this Act. The state’s Labour Department states that employees contribute ₹20 per worker per year, employers ₹40, and the Government contributes ₹20 per worker per year.
For payroll purposes:
- Employee: ₹20/year
- Employer: ₹40/year
- Government: ₹20/year
- Employee + employer: ₹60/year
- Deduction: 31 December
- Remittance: generally 31 January.
3. Karnataka
For Karnataka, the 2026 schedule reports:
- Employee: ₹50/year
- Employer: ₹100/year
- Total: ₹150/year
- Deduction: 31 December
- Remittance: 15 January.
4. Kerala
Kerala requires special attention because the contribution depends on the establishment category.
For shops and establishments, the reported contribution is:
- Employee: ₹50/month
- Employer: ₹50/month
For certain other establishments:
- Employee: ₹45/half-year
- Employer: ₹45/half-year
The applicable periodicity therefore needs to be determined from the establishment’s classification before payroll processing.
5. Andhra Pradesh
The current consolidated schedule reports:
- Employee: ₹30/year
- Employer: ₹70/year
- Total: ₹100/year
- Deduction: 31 December
- Remittance: 31 January.
6. Telangana
The reported 2026 contribution is:
- Employee: ₹2/year
- Employer: ₹5/year
- Total: ₹7/year
- Deduction: 31 December
- Remittance: 31 January.
LWF Compliance Process for Employers
A typical LWF compliance workflow is:
1. Identify the employee’s work location
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2. Identify the applicable State LWF Act/Rules
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3. Check establishment applicability and employee coverage
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4. Calculate employee contribution
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5. Deduct employee contribution from payroll
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6. Add employer contribution
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7. Deposit the combined contribution with the Labour Welfare Board
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8. File the prescribed return/form, where applicable
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9. Maintain payroll and LWF records
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10. Track amendments and revised contribution rates
For a Payroll Compliance Software
If you’re preparing this content for a payroll/statutory compliance platform, I recommend maintaining these fields for every state:
| Compliance field | Example |
|---|---|
| State | Tamil Nadu |
| LWF Act | Tamil Nadu Labour Welfare Fund Act, 1972 |
| Applicability | Establishment/employee based |
| Employee contribution | ₹20/year |
| Employer contribution | ₹40/year |
| Government contribution | ₹20/year |
| Deduction frequency | Annual |
| Deduction date | 31 December |
| Remittance due date | 31 January |
| Return/Form | State-prescribed form |
| Authority | State Labour Welfare Board |
| Penalty | As prescribed under applicable Act/Rules |
| Latest notification | Track state notification |
| Payroll automation | Deduction + challan + return + due-date tracking |
Note: There are conflicting figures in some online LWF tables—for example, rates for Haryana, Kerala, Maharashtra, Telangana and West Bengal—because different sources appear to reflect different amendments, establishment categories or historical rates. For a production payroll system, the latest state government notification should take precedence over secondary compliance websites.
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