Labor Welfare Fund
Labour welfare fund is a statutory contribution managed by individual state authorities. The state labour welfare board determines the amount and frequency of the contribution. The contribution and periodicity of remittance differs with every state. In some states the periodicity is annual (Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc) and in some states it is to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra etc).
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Manage by the Every State Government Authority
Labour Welfare Fund (LWF) is a statutory fund managed by state governments in India to provide financial aid and welfare facilities to workers. It is funded by contributions from employers and employees, and in some states, the government.
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Benefits of Labour Welfare Fund Act across states
With the Labor Board managing the Labor Welfare Fund, it consistently delivers a wide range of initiatives to improve the well-being of workers and their dependents. As a founder and employer, it’s vital to be well-informed about how the government utilizes your contributions and the positive impact it has on those in need.
Better Work Conditions- Safer and healthier working environment
- Reduced working hours
- Improved wages and employee benefits
- Increased job security
applicability of the act
| ACT | The Punjab Labour Welfare Fund Act,1965 |
|---|---|
| rule | The Punjab Labour Welfare Fund Rules 1966 |
| applicability | Any Employer/Establishment employing twenty or more employees/persons |
| frequency | Monthly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
Any person who is employed | 5 | 20 | 25 | Last Day Of Month | 15th April 15th October |
| ACT | The Chandigarh Labour Welfare Fund Act,1965 |
|---|---|
| rule | The Chandigarh Labour Welfare Fund Rules 1966 |
| applicability | Any Employer/Establishment employing twenty or more employees/persons |
| frequency | Monthly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment | 5 | 20 | 25 | Last Day Of Month | 15th April 15th October |
| ACT | The Andra Pradesh Labour Welfare Fund Act,1965 |
|---|---|
| rule | The Andra Pradesh Labour Welfare Fund Rules 1966 |
| applicability | Any Employer/Establishment employing twenty or more employees/persons |
| frequency | Monthly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Employed Mainly In A Managerial Capacity Or Who Is Employed As An Apprentice Or On Part-Time Basis | 30 | 70 | 100 | 31st December | 31st January |
| ACT | The Kerala Shops And Commercial Establishments Workers Welfare Fund Act,2006 |
|---|---|
| Rule | The Kerala Shops And Commercial Establishments Workers Welfare Fund Scheme, 2007 |
| Applicability | Any Employer/Establishment Employing One Or More Employees/Persons |
| Frequency | Monthly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Under The Purview Of The Kerala Shops And Commercial Establishments Act, 1960 | 50 | 50 | 100 | Monthly | 5th Of Every Month |
| ACT | The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 |
|---|---|
| Rule | The Madhya Pradesh Shram Kalyan Nidhi Rules, 1984 |
| Applicability | Any Employer/Establishment Employing One Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Ten Thousand Only Per Month | 10 | 30 | 40 | 30th June | 15th July |
| ACT | The Maharashtra Labour Welfare Fund Act, 1953 |
|---|---|
| Rule | The Maharashtra Labour Welfare Fund Rules, 1953 |
| Applicability | Any Employer/Establishment Employing Five Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Upto Rupees Three Thousand Only Per Month | 6 | 18 | 24 | 30th June | 15th July |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Upto Rupees Three Thousand Only Per Month | 6 | 18 | 24 | 31st December | 15th January |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Three Thousand Only Per Month | 12 | 36 | 48 | 30th June | 15th July |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Three Thousand Only Per Month | 12 | 36 | 48 | 31st December | 15th January |
| ACT | The Odisha Labour Welfare Fund Act, 1996 |
|---|---|
| Rule | The Odisha Labour Welfare Fund Rules, 2015 |
| Applicability | Any Employer/Establishment Employing Twenty Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Who Is Employed As An Apprentice Or On Part-Time Basis | 10 | 20 | 30 | 30th June | 15th July |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Who Is Employed As An Apprentice Or On Part-Time Basis | 10 | 20 | 30 | 31st December | 15th January |
| ACT | The Tamil Nadu Labour Welfare Fund Act, 1972 |
|---|---|
| Rule | The Tamil Nadu Labour Welfare Fund Rules, 1973 |
| Applicability | Any Employer/Establishment Employing Five Or More Employees/Persons |
| Frequency | Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Fifteen Thousand Per Month Or Who Is Employed As An Apprentice Or On Part-Time Basis | 20 | 40 | 60 | 31st December | 31st January |
| ACT | Telangana Labour Welfare Fund Act, 1987 |
|---|---|
| Rule | Telangana Labour Welfare Fund Rules, 1988 |
| Applicability | Any Employer/Establishment Employing Twenty Or More Employees/Persons |
| Frequency | Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees One Thousand Six Hundred Per Month | 2 | 5 | 7 | 31st December | 31st Ja |
| ACT | The West Bengal Labour Welfare Fund Act, 1974 |
|---|---|
| Rule | The West Bengal Labour Welfare Fund Rules, 1976 |
| Applicability | Any Employer/Establishment Employing Ten Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Thousand Six Hundred Per Month | 3 | 15 | 18 | 30th June | 15th July |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Thousand Six Hundred Per Month | 3 | 15 | 18 | 31st December | 15th January |
| ACT | The Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982 |
|---|---|
| Rule | The Chhattisgarh Pradesh Shram Kalyan Nidhi Rules, 1984 |
| Applicability | Any Employer/Establishment Employing One Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In Managerial Or Administrative Capacity Or Employed In A Supervisory Capacity Drawing Wages Exceeding Ten Thousand Per Month | 15 | 45 | 60 | 30th June | 15th July |
| All Employees Except Those Working In Managerial Or Administrative Capacity Or Employed In A Supervisory Capacity Drawing Wages Exceeding Ten Thousand Per Month | 15 | 45 | 60 | 31st December | 15th January |
| ACT | The Bombay Labour Welfare Fund Act, 1953 |
|---|---|
| Rule | The Delhi Labour Welfare Fund Rules, 1997 |
| Applicability | Any Employer/Establishment Employing Five Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Two Thousand Five Hundred Only Per Month | 0.75 | 2.25 | 3 | 30th June | 15th July |
| All Employees Except Those Working In The Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees Two Thousand Five Hundred Only Per Month | 0.75 | 2.25 | 3 | 31st December | 15th January |
| ACT | The Goa Labour Welfare Fund Act, 1986 |
|---|---|
| Rule | Goa Labour Welfare Fund, Rules 1990 |
| Applicability | Any Employer/Establishment Employing One Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Except Those Working In Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees One Thousand Six Hundred Only Per Month | 60 | 180 | 240 | 30th June | 31st July |
| All Employees Except Those Working In Managerial Or Supervisory Capacity And Drawing Wages Exceeding Rupees One Thousand Six Hundred Only Per Month | 60 | 180 | 240 | 31st December | 31st January |
| ACT | The Gujarat Labour Welfare Fund Act, 1953 |
|---|---|
| Rule | The Labour Welfare Fund (Gujarat) Rules, 1962 |
| Applicability | Any Employer/Establishment Employing Ten Or More Employees/Persons |
| Frequency | Half Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment | 5 | 20 | 25 | Last Day Of Month | 15th April 15th October |
| ACT | The Karnataka Labour Welfare Fund Act, 1965 |
|---|---|
| Rule | The Karnataka Labour Welfare Fund Rules, 1968 |
| Applicability | Any Employer/Establishment Employing Fifty Or More Employees/Persons |
| Frequency | Yearly |
Labour Welfare Fund Contribution
| Category | Employee Contribution | Employer Contribution | Total Contribution | Date Of Deduction | Last Date Of Submission |
|---|---|---|---|---|---|
| All Employees Who Are Employed For Wages To Do Any Work Skilled Or Unskilled, Manual Or Clerical, In An Establishment | 20 | 40 | 60 | 31st December | 15th January |
non-applicable states
- 01 Central
- 05 Chhattisgarh
- 09 Goa
- 13 Ladakh
- 02 Andaman Nicobar Island
- 06 Dadra and Nagar Haveli
- 10 Haryana
- 14 Lakshadweep
- 03 Arunachal Pradesh
- 07 Daman and Diu
- 11 Himachal Pradesh
- 15 Rajasthan
- 04 Chandigarh
- 08 Delhi
- 12 Jammu and Kashmir
- 16 Uttar Pradesh
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Scope for Welfare Labour Fund
The Labor Welfare Fund Act has a broad scope that covers housing, family care, and the health of workers. It includes provisions for medical examinations, general treatment clinics, support for infants, education for women, facilities for workers’ activities, financial assistance for marriages, educational support, and funeral benefits. These funds are typically funded through contributions from both employers and employees, with some states also receiving contributions from the government.
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Applicability of the Act
Start: To ensure the welfare of workers and offer social security, the government has enacted the Labour Welfare Fund Act. It is worth noting that this act is currently enforced in 16 out of 37 states, including union territories.
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How Does the Labour Welfare Fund Contribution Process Work?
The Labour Welfare Fund (LWF) contribution can be made on a yearly basis, depending on the state-specific Act. If the contribution is yearly, the employer must divide the deduction period into two consecutive periods, as specified in the state-specific Act. The employer then deducts the LWF contribution from the employee’s salary and submits it to the LWF board in the prescribed form by the due date.
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The uses of the Labour Welfare Fund
In general, the Labour Welfare Fund can be used to cover the following expenses:
- Educational facilities for the children of workers
- Medical facilities for workers and their families (private and public sector)
- Transport facilities for employees commuting to work
- Recreational facilities such as music rooms, dance studios, theatres, sports fields, and art galleries
- Low-interest loans for industrial employees to support home construction
- Trips, guided journeys, and vacation accommodation facilities
- Support for small-scale businesses and secondary employment for women and unemployed individuals
- Reading rooms and libraries
- Vocational training programs
- Nutritious food facilities for children of employees