Hello, in this post, we will discuss about the Labour Welfare Fund. We will cover the following topics:
Latest update:-
As per Karnataka Labour Welfare Act, it is madatory for factory, plantations, workshops, motor, ominibus services and shops and commercial establishment/ ITBT firms more than 50 employees, charitable trust, registered societies to pay contribution in the ratio of Rs. 20:40 (employees:employers) & remit it online.
Last date is on 15-01-2021 and delay in payment will result in a interest of 12% for 1st 3 months. It will be 18% on the due amount after 3 months.
Maharashtra Labour Welfare Fund has given relaxation to all establishments for the convenience of the online Maharashtra Labour Welfare Fund contribution payment for the period of June 2020. The due date for online payment has been extended till 15th August 2020.
- What is the Labour Welfare Fund?
- Labour Welfare Fund Applicability
- Scope of LWF Act
- States following LWF
- Labour welfare fund due date
- Expenditure of labour welfare fund
- How does the process work
What is the Labour Welfare Fund?
It is a kind of financial aid for labourers to improve their working conditions, social security, and standard of living.
The Labour Welfare Fund Act includes various services, benefits and facilities for the employee by the employer.
Both the employer and the employee contribute towards this fund. But the rate and frequency of contribution and the due date differ from state to state.
In the states of Andhra Pradesh, Haryana, Karnataka, Tamil Nadu and others, it is an annual payment whereas for Gujarat, Madhya Pradesh, Maharashtra etc the payment is in June and December.
For example, in Tamil Nadu, employee contribution is Rs. 14 per annum and employer contribution is Rs. 21 per annum.
From January 2015, the maximum salary limit for this scheme is Rs. 15,000 per month. It applies to any establishment who has employed 5 or more people.
Labour Welfare Fund Applicability
The government has introduced the Labour Welfare Fund Act to provide social security to the workers.
It is implemented only in 15 out of 34 states, including union territories.
It is not applicable to all category of employees, and it depends on the wages earned and the designation of the employee.
The implementation of this Act depends on the total number of employees since its applicability differs based on the state-specific rules.
Scope of LWF Act
LWF Act includes housing, family care and worker’s health service such as giving medical examinations, a clinic for general treatment, infant welfare, women’s education, workers activity facilities, marriage, education, funeral, etc.
States following LWF
The states on which the LWF Act is implemented:
- Andhra Pradesh
- Chandigarh
- Chhattisgarh
- Delhi
- Goa
- Gujarat
- Haryana
- Karnataka
- Kerala
- Madhya Pradesh
- Maharashtra
- Odisha
- Punjab
- Tamil Nadu
- Telangana
- West Bengal
Not Applicable States
|
Andaman and Nicobar Islands |
Dadra and Nagar Haveli | Jharkhand | Mizoram | Sikkim |
| Arunachal Pradesh | Daman and Diu | Lakshadweep | Nagaland |
Tripura |
|
Assam |
Himachal Pradesh | Manipur | Pondicherry | Uttar Pradesh |
| Bihar | Jammu and Kashmir | Meghalaya |
Rajasthan |
Labour welfare fund due date
Now let us see in the table below the various due dates and contribution for LWF in different states:
| State or Union Territory | Contribution Frequency | Due Date |
|---|---|---|
| Karnataka | Annual | 15 Jan |
| Tamil Nadu | Annual | 31 Jan |
| Andhra Pradesh | Annual | 31 Jan |
| Kerala (For firms under Shops and Establishment Act) | Monthly | 5th |
| Kerala (For firms under Factories Act) | Half Yearly | 20th |
| Maharashtra | Half Yearly | 15 Jul,15 Jan |
| Goa | Annual | 31 Jan |
| Delhi | Half Yearly | 15 Jul,15 Jan |
| Punjab | Monthly | 15 Oct,15 Apr |
| Chandigarh (Union Territory) | Monthly | 15 Oct,15 Apr |
| Haryana | Monthly | 31 Dec |
| Madhya Pradesh | Half Yearly | 15 Jul,15 Jan |
| Chhattisgarh | Half Yearly | 31 Jul,31 Jan |
| Gujarat | Half Yearly | 31 Jul,31 Jan |
| West Bengal | Half Yearly | 15 Jul,15 Jan |
| Puducherry | Not Applicable | Not Applicable |
| Telangana | Annually | 31 Dec – Date of deduction, 31 Jan – Last date for submission |
| Odisha | Half yearly | 30 June and 31 Dec – Date of deduction, 15 July and 15 Jan – Last date for submission |
|
State and Union Territory |
Contribution
Regularity |
Contribution
Month(s) |
Employee
Contribution |
Employer
Contribution |
Total
Contribution |
Return | Due Date |
Specific Rules |
| Karnataka | Annual | Dec | 20 | 40 | 60 | Form D | 15 Jan | Applicable for Contract Labor also. |
| Tamil Nadu | Annual | Dec | 20 | 40 | 60 | Form A | 31 Jan | Employees in the managerial capacity are exempted.
Employees in a supervisory capacity with wages above Rs.3500 per month are exempted. |
| Andhra Pradesh | Annual | 31st Dec | 30 | 70 | 100 | Form F | 31 Jan | Employees in the managerial capacity are exempted.
An employee in a supervisory capacity with wages exceeding Rs.1600 per month is exempted. Applicable for Contract Labor also. |
| Kerala (For firms under Shops and Establishment Act) | Monthly | Jan-Dec | 50 | 50 | 100 | Form A | 5th of every month | Applicable for Contract Labor also. |
| Kerala (For firms under Factories Act) | Half Yearly | Jan-Dec | 4 | 8 | 12 | Form A | 20th | Applicable for Contract Labor also. |
| Maharashtra | Half Yearly | June, Dec | 6/12 | 18/36 | 24/48 | Form A1cum Return | 30th June to 15th July
31st Dec to 15th Jan |
Employees in the managerial capacity are exempted.
Employees in a supervisory capacity with wages more than Rs.3000 per month are exempted. Applicable for Contract Labor also. Contribution amount differs for employees with wages exceeding up to 3000 per month (24) and those with wages more than 3000 per month (48). |
| Goa | Half yearly | 31st Dec | 120 | 360 | 480 | Form B | 31 Jan | Employees in the managerial capacity are exempted.
Employees in the supervisory capacity and wages above Rs.3500 per month are exempted. Applicable for Contract Labor also. Last amended 6 Aug 2015 |
| Delhi | Half Yearly | June, Dec | 0.75 | 2.25 | 3 | Form A | 15 Jul,
15 Jan |
Employees in the managerial capacity are exempted.
Employees in a supervisory capacity and drawing wages above Rs.2500 per month are exempted. |
| Punjab | Monthly | Apr-Mar | 5 | 20 | 25 | Nil | 15 Oct,
15 Apr |
Apr-Sept & Oct-Mar are the half years.
Employee shall mean an employee whose name is there in the register of an establishment on the last working day of the month. |
| Chandigarh (Union Territory) | Monthly | Apr-Mar | 5 | 20 | 25 | Nil | 15 Oct,
15 Apr |
Apr-Sept & Oct-Mar are the half years.
Employee shall mean an employee whose name is there in the register of an establishment on the last working day of the month. |
| Haryana | Monthly | Jan-Dec | 25 | 50 | 75 | Nil | 31 Dec | All employee Applicable for all employees including Contract Labor also. |
| Madhya Pradesh | Half Yearly | June, Dec | 10 | 30 | 40 | Nil | 15 Jul,
15 Jan |
Employees drawing wages exceeding Rs.10000 per month are exempted.
Applicable for Contract Labor also. |
| Chhattisgarh | Half Yearly | June, Dec | 15 | 45 | 60 | Form A | 31 Jul,
31 Jan |
Employees in the managerial capacity are exempted.
Employees in the supervisory capacity and wages above Rs.3500 per month are exempted. Applicable for Contract Labor also. |
| Gujarat | Half Yearly | June, Dec | 6 | 12 | 18 | Form A1 | 31 Jul,
31 Jan |
Employees in the managerial capacity are exempted.
Employees in supervisory capacity and wages above Rs.3500 per month are exempted. Applicable for Contract Labor also. |
| West Bengal | Half Yearly | June, Dec | 3 | 15 | 18 | Form D | 15 Jul,
15 Jan |
Employees in the managerial capacity are exempted.
Employees in supervisory capacity and wages above Rs.1600 per month are exempted. |
| Telangana | yearly | December | 2 | 5 | 7 | Form F | 31 Dec – Date of deduction
31 Jan – Last date for submission |
All Employees except those working in the managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred per month |
| Odisha | Half yearly | June
December |
20 | 40 | 60 | Form F | 30 June and 31 Dec – Date of deduction
15 July and 15 Jan – Last date for submission |
All employees except those working in the managerial or supervisory capacity and who is employed as an apprentice or on a part-time basis |
Expenditure of labour welfare fund –
The amount of the labour welfare fund can be used by the labour welfare board to cover the following expenditure of the employees.
- Vocational training
- Libraries
- Nutritious food for children
- Transport facilities for workers
- Educational facilities for children
- Medical facilities for employees and dependents (it is applicable for both sector, private and public sectors)
- entertainment facilities for workers, such as – music, sports, and other art forms.
- Vacation facilities for employees and their families.
- Subsidiaries occupational for women and unemployed persons.
How does the process work?
The contribution of the labour welfare fund can be made annually, monthly and half-yearly. But, regularity can be different because it depends on the particular states. So, employers have to make the deduction from the salary of the employee and submit it to the board in the prescribed form before the due date.
With that, we have come to the end of this post on the Labour Welfare Fund.
Do you have any questions? Let us know in the comment section below. Also, you can go through our related posts.
Understanding Statutory Compliance in Payroll
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34 Comments
how to register lwf madhya pradesh and pls share website link lwf for madhya pradesh.
Please visit the link – http://shramsewa.mp.gov.in/labourwelfareboard/en-us/
We have registered office in Maharashtra and we carry out our business in other states also. How to pay LWF of other state. Is it ok that we pay all workers under Maharashtra registered number.
No, you have pay LWF as per the state where the business and employees are stationed
We have a third party manpower (1 employee) at Gujarat location and agency thorough he is been engaged is in Maharashtra, so LWF deduction will be applicable as per which state?
It will be applicable as per Maharashtra state
Hi, whether LWF registration is required for a Trust containing 4 employees which holds Voluntary PF registration?
Hi,
Kindly let me know:
1. Do we need to contribute LWF for Employees who are in the supervisory or managerial capacity or drawing more than Rs.15,000/-
2. If an employee working in Delhi do we have to register in Delhi or we can pay in the state we are registered
1. Yes, the contribution has to be given
2. LWF is state-wise, hence has to be registered in the particular state
Hi, The below are my quires as per Andhra Pradesh Labour Welfare Fund Act 1987.
1. Currently we are in 2020, so LWF for which we need to pay is it for 2020 or 2021.
2. Shoud we maintain any register for LWF
3. Once we pay the LWF should we submit a copy to Labour Department? If Yes any format for the same.
1. for 2020
2. Yes, we have to
3. Yes, FORM F which can be got from the AP labour welfare department website
hi
In Kerala LWF is done on 2 types…one for factories and another for Shops act.
The shops payment is 20 each employee and employer
For factories it is ₹.45 each as per amendment (2020)
Is it right?
Yes, and the contribution period for Factories is Half Yearly.
In Maharashtra the payment is being accepted online and the payment is to be made slab wise and if the website is catching highest slab automatically , what is the solution?
Please contact the Maharashtra Labour Welfare Department for any technical issues in the portal.
ours is a newly started IT related Services Company located in Hyderabad, Telangana. what is the due date for us. because i was trying to pay LWF through online but it is saying INVALID CONTENT. and not accepting payment.
Please clarify.
Thanks & Regards,
Krishna
For Telangana, the contribution periodicity is yearly. Hence, the deduction date is 31st Dec and submission due is by 31st Jan.
HOW MANY EMPLOYEES REQUIRED TO ELIGIBLE FOR LWF PAYMENT
Sir, this is state specific. For Karnataka, it is any Employer employing fifty or more employees.
I am confused. In due date for Haryana you have mentioned 31 dec. Above the table also annual contribution is mentioned. But in the table in frequency it is written monthly. So when do we deposit annual or monthly for Haryana. And what about returns?
Even if the contribution period is monthly, the due date for the payment is 31st Dec of the pertaining month. For eg. Year 2019, the due date is 31st Dec 2019 for whole year
Hi Team,
Thanks for this blog. I am a user of saral pay pack (Replyon)
I missed to submit return / payment of Feb 2020 and March 2020. Kindly advise if I can file it in April 2020. I did not find any option in LWF portal.
Kindly help.
Yes, you can file.
Hi Team,
Can we also get the contribution column next to due date column as per respective states mentioned above.
We’ll look into adding it, thank you for suggesting.
I always found good and valuable for me thaks to salarypay blog i wish you continue this service as long as we need
Dear Team,
Wanted to know that LWF registration and half yearly payment is applicable to Private unaided schools in Maharashtra or not ?
Many consultants are unaware about it. Labour welfare commissioner is saying it is not. But it is not mentioned. Please help me to find out the answer of this query.
Vinayak (8308869067)
what is the contribution eligibility for labour welfare fund in tamilnadu..?
Rs. 10 as Employee Contribution and Rs. 20 as Employer Contribution per year – 2015 Onwards.
How can online payment to be done pl explain the procedure.
Very good blog provide more information on relevant topics of HR
Thank you for reading and commenting. We are glad this blog was useful to you.
Very good article
Thank you for reading and commenting. We are glad this blog was useful to you.