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LABOUR LAW LIBRARYlabor 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).

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.

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, healthier working environment
  • Reduced working hours
  • Improved wages and 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
Form
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 Punjab Labour Welfare Fund Act,1965
rule The Punjab Labour Welfare Fund Rules,1966
applicability Any Employer/Establishment employing one or more employees/persons
frequency Monthly
Form
Labour Welfare Fund Contribution
Category Employee Contribution Employer Contribution Total Contribution Date Of Deduction Last Date Of Submission
Employee drawing salary upto Rupees Fifteen Thousand per month 5 20 25 Last Day Of Month 15th October 15th April
ACT The Punjab Labour Welfare Fund Act,1965
rule The Punjab Labour Welfare Fund Rules,1966
applicability Any Employer/Establishment employing ten or more employees/persons
frequency Monthly
Form
Labour Welfare Fund Contribution
Category Employee Contribution Employer Contribution Total Contribution Date Of Deduction Last Date Of Submission
All employees employed, directly by or through any agency (including a contractor) with or without the knowledge of the principal employer, for remuneration in any factory or establishment to do any work connected with its affairs. Each employee shall contribute to the Fund every month an amount equal to zero point two percent of his salary or wages or any remuneration subject to a limit of rupees thirty one and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee 31 62 93 Every Month (Also being accepted QuarterlyHalf YearlyYearly in certain cases) Last Day Of The Month (Also being accepted QuarterlyHalf YearlyYearly in certain cases)
ACT Andhra Pradesh Labour Welfare Fund Act, 1987
rule The Andhra Pradesh Labour Welfare Fund Rules, 1988
applicability Any Employer/Establishment employing one or more employees/persons
frequency Yearly
Form
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
Form
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
Form
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
Form
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
Form
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
Form
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
Form
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 January
15th October
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
Form
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
Form
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
Form
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
Form
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
Form
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 three thousand and five hundred per month 6 12 18 30th June 15th July
All employees except those working in managerial or supervisory capacity and drawing wages exceeding rupees three thousand and five hundred per month 6 12 18 31st December 15th January
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
Form
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

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.

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.

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.

The uses of the Labour Welfare Fund

In general, the Labour Welfare Fund can be used to cover the following expenses:

  • The fund is used by the educational facilities for the children of the workers.
  • Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families are covered by the welfare fund.
  • Transport facilities to the workers for commuting to work are taken care of.
  • The funds are used on employees with recreational facilities such as music rooms, dance studios, theatres, sports fields, and art galleries to create a holistic work environment.
  • Industrial employees can access loans at lower interest rates through this scheme to facilitate home construction.
  • Trips, guided journeys, and vacation accommodations.
  • Small-scale businesses and secondary jobs cater to women and individuals without employment.
  • Reading rooms and libraries.
  • Vocational training.
  • Nutritious food to children of employees.

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