—Guide
Labour Welfare Fund Contributions: State-by-State Guide for Employers
What Labour Welfare Fund contributions are, which states require them, how contribution frequency and amounts vary, and how employers with multi-state teams stay compliant.
Labour Welfare Fund (LWF) contributions are small payments by employers and employees in states that have Labour Welfare Fund laws. The money funds welfare schemes for workers — education, health, housing and recreation. The amounts are small, but they're often missed.
Which States Have LWF
States with Labour Welfare Fund laws include Telangana, Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Kerala, Gujarat, Madhya Pradesh, Punjab, Haryana, West Bengal, Goa, Odisha, Chhattisgarh and Delhi, among others. Coverage and rules differ in each.
How It Varies
- Frequency — some states collect annually, others half-yearly or monthly.
- Amounts — fixed amounts per employee, with the employer usually paying more than the employee.
- Coverage — thresholds based on establishment type, headcount or employee wages.
- Due dates — often in January or July, depending on the state and period.
What Employers Do
- Check whether each location is covered.
- Register with the state's Labour Welfare Board where required.
- Deduct the employee share and add the employer share.
- Pay by the state's due date and file the return.
Unclaimed Wages
In some states, unpaid wages, fines and unclaimed amounts must also be paid into the Labour Welfare Fund.
Staying on Top of It
Add LWF to the compliance calendar for each state, with the correct periods and due dates, and build deductions into payroll.
Getting Help
Think Filing manages Labour Welfare Fund compliance for employers with staff in one or several states.