Labour Welfare Fund – Applicability, Scope and Due date
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Labour Welfare Fund – Applicability, Scope and Due date

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?

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

Labour welfare fund due date

Now let us see in the table below the various due dates 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 20th
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 Not Applicable 31 Dec – Date of deduction, 31 Jan – Last date for submission
Odisha Not Applicable 30 June and 31 Dec – Date of deduction, 15 July and 15 Jan – Last date for submission

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.

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28 Comments

  • Very good article

    • Thank you for reading and commenting. We are glad this blog was useful to you.

  • 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.

  • 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.

  • 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)

  • I always found good and valuable for me thaks to salarypay blog i wish you continue this service as long as we need

  • 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.

  • 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.

  • 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

  • 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.

  • 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.

  • 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.

  • 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.

  • 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,
    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, whether LWF registration is required for a Trust containing 4 employees which holds Voluntary PF registration?

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