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Labour Welfare Fund in India and its Rates(LWF)

The Labour Welfare Fund (LWF) is a statutory contribution established by various states in India to promote the welfare and improve the living standards of labourers within those states. Managed by individual State Labour Welfare Boards, it is primarily funded by contributions from both employers and employees. The fund is used to support a variety of social and welfare initiatives aimed at benefiting the workforce.

Key Points about Labour Welfare Fund (LWF):

It is a mandatory contribution applicable in certain states and is governed by the respective State Labour Welfare Board.
The contribution rates, periodicity, and applicability vary from state to state.
Some states mandate annual contributions, while others may require half-yearly or monthly remittances.
The contributions collected are used to fund welfare activities for labourers, which may include:
Sports Clubs: Employees and their families can access these facilities free of charge.
Educational and Social Centres: This includes community centres, reading rooms, and libraries.
Excursions and Holiday Homes: For recreation and relaxation.
Entertainment and Recreation: Programs for the social and recreational well-being of the workers.
Corporate Social Activities: Events and initiatives for social interaction and improvement of worker morale.

Sports Clubs: Employees and their families can access these facilities free of charge.
Educational and Social Centres: This includes community centres, reading rooms, and libraries.
Excursions and Holiday Homes: For recreation and relaxation.
Entertainment and Recreation: Programs for the social and recreational well-being of the workers.
Corporate Social Activities: Events and initiatives for social interaction and improvement of worker morale.

Registration is mandatory when an establishment reaches the employee count threshold set by the respective state' s rules.
LWF is only applicable in certain states, and the thresholds for applicability can depend on the number of employees.
If a company opens a new branch in a state where LWF is applicable, separate registration for that state is required. However, within the same state, additional registration for new branches is not necessary.
The registration process for LWF differs from state to state.
Many states have implemented online registration processes, while others still require manual intervention and the submission of physical documents to the authorities.
The process may involve submitting various documents, and the complexity can vary depending on the state.

The registration process for LWF differs from state to state.
Many states have implemented online registration processes, while others still require manual intervention and the submission of physical documents to the authorities.
The process may involve submitting various documents, and the complexity can vary depending on the state.

The LWF deduction is divided into two parts: Employee Contribution and Employer Contribution.
The amount to be deducted from an employee's salary is determined by the state-specific rules, which could vary by salary range or designation.
Deductions may be carried out monthly, half-yearly, or annually, depending on the state's regulations.

Some states have implemented online payment systems through employer logins.
For states where online payments are not available, employers need to file manual challans and forms as per the state's prescribed procedure.

In states where online payment is available, a detailed list of employees eligible for LWF contributions needs to be uploaded. The system will then generate a payment challan based on the active employee count.
In states that still rely on manual challan submissions, there is no requirement to file separate returns.

Conclusion:

The LWF is a state-specific contribution meant to support the welfare of employees and promote their quality of life. It is important for employers to understand the specific requirements and processes of their state to ensure compliance, including registration, deduction, payment, and returns filing.

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

Labour Welfare Fund and rates in India

State	Andra Pradesh
Website	https://www.aplabourwelfarefund.org/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing fifty or more persons/employee
Cateogories of Employee covered	Effective December 2020 all employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Yearly
Employee Contribution	Rs 20
Employer Contribution	Rs 40
Total Contribution	Rs 60
When to deduct	December Salary
When and how to pay	15th January, Offline

State	Chandigarh
Website	http://chandigarh.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing one or more persons/employee
Cateogories of Employee covered	All Employees who draws salary upto Rs 15,000 per month
Frequency of Contribution	Monthly
Employee Contribution	Rs 5
Employer Contribution	Rs 20
Total Contribution	Rs 25
When to deduct	From Monlthy Salary
When and how to pay	15th October & 15th April, offline

State	Chhattisgarh
Website	http://cglabour.nic.in
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing ten or more persons/employee
Cateogories of Employee covered	All employees except those above managerial or supervisory capacity drawing salary above Rs 10,000 per month
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 15
Employer Contribution	Rs 45
Total Contribution	Rs 60
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January, offline

State	Delhi
Website	https://delhi.gov.in
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing five or more persons/employee
Cateogories of Employee covered	All employees except those above managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 0.75
Employer Contribution	Rs 2.25
Total Contribution	Rs 3.00
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January. Offline, chequre or DD in favour of "Delhi Labour Welfare Fund"

State	Goa
Website	http://labour.goa.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing five or more persons/employee
Cateogories of Employee covered	All employees except those above managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 60
Employer Contribution	Rs 180
Total Contribution	Rs 240
When to deduct	From June and December Salary
When and how to pay	31st July & 31st January. Offline, chequre or DD in favour of "The Secretary, Goa Labour Welfare Fund"

State	Gujarat
Website	https://glwb.gujarat.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing five or more persons/employee
Cateogories of Employee covered	All employees except those above managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 6
Employer Contribution	Rs 12
Total Contribution	Rs 18
When to deduct	From June and December Salary
When and how to pay	31st July & 31st January, Online

State	Haryana
Website	https://hrylabour.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing ten or more persons/employee
Cateogories of Employee covered	All employees are covered
Frequency of Contribution	Monthly
Employee Contribution	0.2% or Maximum Rs 31/- of monthly salary
Employer Contribution	Maximum Rs 62/- or double the contribution of employee
Total Contribution	Maximum to Rs 93/- or employee plus employer contribution
When to deduct	From Montly Salary
When and how to pay	Monthly to Pay. Online payment

State	Karnataka
Website	https://labouronline.kar.nic.in
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing fifty or more persons/employee
Cateogories of Employee covered	Effective December 2020 all employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Yearly
Employee Contribution	Rs 20
Employer Contribution	Rs 40
Total Contribution	Rs 60
When to deduct	December Salary
When and how to pay	15th January, Offline

State	Kerala
Website	http://peedika.kerala.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing one or more persons/employee
Cateogories of Employee covered	All employees are covered
Frequency of Contribution	Monthly
Employee Contribution	Rs 50
Employer Contribution	Rs 50
Total Contribution	Rs 100
When to deduct	Monthly Salary
When and how to pay	5th of every month, Offline

State	Madhya Pradesh
Website	http://shramsewa.mp.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing one or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity and drawing salary exceeding Rs 10,000 per month
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 10
Employer Contribution	Rs 30
Total Contribution	Rs 40
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January, Offline

State	Maharashtra
Website	https://public.mlwb.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing five or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 25
Employer Contribution	Rs 75
Total Contribution	Rs 100
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January, Online

State	Odisha
Website	https://labdirodisha.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing twenty or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 10
Employer Contribution	Rs 20
Total Contribution	Rs 30
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January, Offline

State	Punjab
Website	http://pblabour.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing twenty or more persons/employee
Cateogories of Employee covered	All employees are covered
Frequency of Contribution	Monthly
Employee Contribution	Rs 5
Employer Contribution	Rs 20
Total Contribution	Rs 25
When to deduct	From Monthly Salary
When and how to pay	15th April & 15th October, Offline

State	Tamil Nadu
Website	https://www.tn.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing five or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity and drawing salary exceeding Rs 15,000 per month
Frequency of Contribution	Yearly
Employee Contribution	Rs 20
Employer Contribution	Rs 40
Total Contribution	Rs 60
When to deduct	December Salary
When and how to pay	31th January, Offline

State	Telangana
Website	https://labour.telangana.gov.in/
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing twenty or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Yearly
Employee Contribution	Rs 2
Employer Contribution	Rs 5
Total Contribution	Rs 7
When to deduct	December Salary
When and how to pay	31th January, Online

State	West Bengal
Website	lwf.wblabour.gov.in
Employer Applicability	The Provisions of the Act shall be restricted to any Employer/Establishment employing ten or more persons/employee
Cateogories of Employee covered	All employees except those working in the managerial or supervisory capacity
Frequency of Contribution	Half Yearly
Employee Contribution	Rs 3
Employer Contribution	Rs 15
Total Contribution	Rs 18
When to deduct	From June and December Salary
When and how to pay	15th July & 15th January, Online

Key Takeaways:

Stay Updated: Each state has its own set of rules for Professional Tax, so it's important to regularly review the applicable laws.
Track Due Dates: Employers should carefully track the due dates for both payments and returns to avoid penalties and interest.
First-Time Compliance: Companies that register for Professional Tax for the first time must adhere to the monthly filing requirement, as missing these deadlines can lead to financial repercussions.
Understand Exemptions: Be aware of the exemptions under state laws to avoid unnecessary payments for individuals who are not required to pay Professional Tax.

This comprehensive understanding of Professional Tax applicability, payment schedules, and compliance will help employers and professionals stay compliant with state-specific laws.

Labour Welfare Fund not applicable states in India

Andaman and Nicobar Islands

Arunachal Pradesh

Assam

Bihar

Dadra and Nagar Haveli

Daman and Diu

Himachal Pradesh

Jammu Kashmri

Jharkhand

Ladakh

Lakshadweep

Manipur

Meghalaya

Mizoram

Nagaland

Puducherry

Rajasthan

Sikkim

Tripura

Uttar Pradesh

Uttarakhand

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