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Labour Welfare Fund

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Labour Welfare Fund:

Labor Welfare Fund (LWF) is a statutory contribution managed by individual state governments in India, aimed at improving the working conditions, providing social security, and improving the living standards of workers. The applicability, contribution rates, and periodicity of the LWF vary from state to state. Below is a summary of the Labor Welfare Fund regulations across various Indian states:

Maharashtra

  1. Applicability: Factories, shops, and commercial establishments.
  2. Employee Contribution: ₹6 per employee every six months.
  3. Employer Contribution: ₹18 per employee every six months.
  4. Due Date: 30th June and 31st December.

Karnataka

  • Applicability: Factories, motor transport undertakings, plantation, shops, and commercial establishments.
  • Employee Contribution: ₹20 per employee annually.
  • Employer Contribution: ₹40 per employee annually.
  • Due Date: 15th January.

Gujarat

  • Applicability: Factories, shops, and commercial establishments.
  • Employee Contribution: ₹6 per employee every six months.
  • Employer Contribution: ₹12 per employee every six months.
  • Due Date: 15th July and 15th January.

Tamil Nadu

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹10 per employee every six months.
  • Employer Contribution: ₹20 per employee every six months.
  • Due Date: 31st January and 31st July.

Andhra Pradesh

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹6 per employee every six months.
  • Employer Contribution: ₹12 per employee every six months.
  • Due Date: 30th June and 31st December.

Telangana

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹6 per employee every six months.
  • Employer Contribution: ₹12 per employee every six months.
  • Due Date: 30th June and 31st December.

Haryana

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹10 per employee every month.
  • Employer Contribution: ₹20 per employee every month.
  • Due Date: 15th of the following month.

Punjab

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹5 per employee every month.
  • Employer Contribution: ₹10 per employee every month.
  • Due Date: 15th of the following month.

West Bengal

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹3 per employee every six months.
  • Employer Contribution: ₹15 per employee every six months.
  • Due Date: 30th June and 31st December.

Kerala

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹20 per employee annually.
  • Employer Contribution: ₹40 per employee annually.
  • Due Date: 31st December.

Madhya Pradesh

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹6 per employee every six months.
  • Employer Contribution: ₹12 per employee every six months.
  • Due Date: 15th January and 15th July.

Rajasthan

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹20 per employee annually.
  • Employer Contribution: ₹40 per employee annually.
  • Due Date: 15th January.

Odisha

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹5 per employee every six months.
  • Employer Contribution: ₹10 per employee every six months.
  • Due Date: 30th June and 31st December.

Assam

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹3 per employee every month.
  • Employer Contribution: ₹6 per employee every month.
  • Due Date: 15th of the following month.

Bihar

  • Applicability: Factories, motor transport undertakings, plantations, shops, and commercial establishments.
  • Employee Contribution: ₹3 per employee every month.
  • Employer Contribution: ₹6 per employee every month.
  • Due Date: 15th of the following month.

Key Points to Remember:


Registration: Employers must register their establishments under the respective state Labor Welfare Fund Act.
Contribution: Both employers and employees are required to contribute to the fund as per the specified rates.
Due Dates: Adhere to the due dates for remitting the contributions to avoid penalties.
Exemptions: Some states may have specific exemptions based on the type of establishment or the income of employees.