The Labour Welfare Fund (LWF) is a statutory contribution collected from employers and employees to promote the welfare of workers in various industries. The fund is governed by state-specific Labour Welfare Fund Acts and is used for the benefit of workers through healthcare, education, housing, and financial aid schemes.
Labour Welfare Fund applies to businesses with a minimum number of employees (varies by state) and covers sectors such as factories, plantations, shops, and commercial establishments. Employers must deduct the prescribed amount from employee salaries and contribute their share to the Labour Welfare Board.
Each state government has its own Labour Welfare Fund scheme. Some key state-wise variations include:
1. Maharashtra Labour Welfare Fund (MLWF)
o Contributions: Employee ₹6, Employer ₹18, Government ₹3 (Half-yearly)
2. Tamil Nadu Labour Welfare Fund (TNLWF)
o Contributions: Employee ₹10, Employer ₹20 (Annually)
3. Karnataka Labour Welfare Fund (KLWF)
o Contributions: Employee ₹20, Employer ₹40 (Annually)
4. Delhi Labour Welfare Fund (DLWF)
o Contributions: Employee ₹0.75, Employer ₹2.25 (Monthly)
The Labour Welfare Fund applies to:
• Factories, shops, commercial establishments, and motor transport undertakings.
• Employers with a minimum number of employees, varying from 5 to 50 employees, depending on the state.
• Employees earning wages below the prescribed limit under the respective state’s LWF Act.
• Employers must deduct the LWF contribution from eligible employees and contribute their share.
• Financial Assistance: Grants, loans, and subsidies for workers.
• Medical Benefits: Healthcare support, maternity aid, and hospital assistance.
• Education & Scholarships: Support for employees’ children’s education.
• Housing Assistance: Low-interest loans for housing and accommodation.
• Skill Development: Vocational training programs for employees.
• Pension & Retirement Benefits: Assistance for aged and retired workers.
• Employer’s Registration Certificate (Shops & Establishment Act, Factories Act, etc.)
• List of employees and their salaries
• Details of contributions (Employee & Employer share)
• PAN and GST details of the employer
• Bank details for fund remittance
• Proof of previous LWF contributions (if applicable)
Step 1: Employer Registration
• Employers must register with the State Labour Welfare Board through the official state portal.
• Submit business details, employee data, and proof of eligibility.
Step 2: Employee Contribution Deduction
• Employers deduct the LWF contribution from eligible employees’ salaries.
Step 3: Employer Contribution Calculation
• Employers must match or contribute a higher share as per state norms.
Step 4: Payment to Labour Welfare Fund Board
• The combined employee and employer contributions are deposited into the respective state’s LWF account.
• Payment is made annually, half-yearly, or monthly, based on the state’s regulations.
Step 5: Filing Compliance Returns
• Employers must file LWF returns with the Labour Welfare Board within the due date.
• State-Specific Compliance: Guidance on Labour Welfare Fund rules and rates for each state.
• Hassle-Free Registration: Assistance with LWF registration and employer compliance.
• Timely Payment Processing: Help with deductions, calculations, and payment submissions.
• Return Filing Support: Ensuring accurate and timely submission of LWF returns.
