We use cookies. Under India's DPDP Act 2023 your data is processed only with consent. Privacy Policy | Cookie Policy

Iztty — AI Statutory Compliance Platform
Login Book a Demo
E-Library — 2025

Labour Welfare Fund (LWF) India 2025: State-wise Contribution Rates, Due Dates & Applicability

The Labour Welfare Fund (LWF) is a statutory contribution levied by 16 Indian state governments to support worker welfare — covering housing, education, medical facilities, and recreational amenities for employees. Both employers and employees contribute to the LWF. Contribution amounts, payment cycles, and applicability thresholds vary significantly by state.

16
States with LWF — contribution rates vary by state
3
Payment cycles — Monthly, Half-yearly, Annual
₹6
Lowest employee contribution (Gujarat, Maharashtra — per 6 months)
₹10
Highest monthly employee contribution (Kerala)

Employer Liability: The employer is responsible for: (1) collecting the employee's LWF share by deducting it from wages on the last working day of the remittance period; (2) adding the employer's own contribution; and (3) depositing the combined amount with the State Labour Welfare Board within the prescribed due date. Late payment attracts interest. Some states (Haryana, Punjab, Karnataka) also require annual returns to the Board.

All 16 States — Complete Reference

State-wise LWF Contribution Rates, Frequency & Due Dates

Every LWF-applicable Indian state in one consolidated table — employee share, employer share, total contribution, payment cycle, due dates, and applicability threshold.

StateApplicable Act Employee Share Employer Share Total / PeriodCycleDue Date(s)Applicability
Andhra Pradesh AP Labour Welfare Fund Act, 1987 ₹2/month ₹5/month ₹7/month Monthly 10th of following month All establishments with 5+ employees
Chandigarh Punjab Labour Welfare Fund Act, 1965 (extended to Chandigarh) ₹5/6 months ₹10/6 months ₹15/6 months Half-yearly 31 Jan & 31 Jul All establishments with 5+ employees
Chhattisgarh CG Labour Welfare Fund Act, 1958 ₹10/6 months ₹30/6 months ₹40/6 months Half-yearly 31 Jan & 31 Jul Establishments with 10+ employees
Delhi Delhi Labour Welfare Fund Act, 1997 ₹5/6 months ₹20/6 months ₹25/6 months Half-yearly 15 Jan & 15 Jul All establishments with 5+ employees
Goa Goa Labour Welfare Fund Act, 1986 ₹20/6 months ₹60/6 months ₹80/6 months Half-yearly 31 Jan & 31 Jul All establishments
Gujarat Gujarat Labour Welfare Fund Act, 1953 ₹6/6 months ₹12/6 months ₹18/6 months Half-yearly 30 Jun & 31 Dec All establishments with 10+ employees
Haryana Punjab Labour Welfare Fund Act, 1965 (extended to Haryana) ₹25/6 months ₹50/6 months ₹75/6 months Half-yearly 31 Jan & 31 Jul All establishments with 10+ employees
Karnataka Karnataka Labour Welfare Fund Act, 1965 ₹20/6 months ₹40/6 months ₹60/6 months Half-yearly 31 Jan & 31 Jul All establishments with 50+ employees
Kerala Kerala Shops & Commercial Establishments Workers Welfare Fund Act, 2006 ₹10/month ₹30/month ₹40/month Monthly 5th of following month Shops & commercial establishments
Madhya Pradesh MP Labour Welfare Fund Act, 1982 ₹10/6 months ₹30/6 months ₹40/6 months Half-yearly 31 Jan & 31 Jul Establishments with 10+ employees
Maharashtra Maharashtra Labour Welfare Fund Act, 1953 ₹6/6 months ₹12/6 months ₹18/6 months Half-yearly 15 Jun & 15 Dec Establishments with 5+ employees
Odisha Orissa Labour Welfare Fund Act, 1996 ₹10/year ₹30/year ₹40/year Annual 31 December Establishments with 5+ employees
Punjab Punjab Labour Welfare Fund Act, 1965 ₹25/6 months ₹50/6 months ₹75/6 months Half-yearly 31 Jan & 31 Jul All establishments with 10+ employees
Rajasthan Rajasthan Labour Welfare Fund Act, 2014 ₹10/6 months ₹30/6 months ₹40/6 months Half-yearly 31 Jan & 31 Jul Establishments with 5+ employees
Tamil Nadu Tamil Nadu Labour Welfare Fund Act, 1972 ₹10/6 months ₹20/6 months ₹30/6 months Half-yearly 30 Jun & 31 Dec All establishments with 5+ employees
Telangana Telangana Labour Welfare Fund Act, 1987 ₹2/month ₹5/month ₹7/month Monthly 10th of following month All establishments with 5+ employees

ⓘ Rates current as of 2025. Verify against latest state government Labour Welfare Board notifications before remittance.

Employer obligations

LWF Compliance Steps for Every Employer

LWF compliance involves registration with the State Labour Welfare Board, periodic deductions, remittance, and — in several states — annual return filing. The obligations apply separately for each state in which you have covered employees.

1

Register with State Labour Welfare Board

Each establishment must register with the Labour Welfare Board of every applicable state. Registration is required before the first LWF remittance. The Board issues a Registration Certificate with a unique LWF code.

2

Deduct Employee LWF Share from Wages

On the last working day of the contribution period (last day of the month for monthly states, or last working day of June/December for half-yearly states), deduct the prescribed LWF amount from each covered employee's wages.

3

Remit Combined Contribution by Due Date

Pay the employee deduction + employer share to the State Labour Welfare Board within the prescribed due date. Most states now have online payment portals. Delhi, Maharashtra, and Karnataka have active enforcement.

4

Maintain LWF Contribution Register

Maintain a register showing each employee's name, wages, LWF deduction, and remittance date for each contribution period. This register must be produced during Board inspections.

5

File Annual Returns Where Required

States like Haryana, Punjab, Karnataka, and Tamil Nadu require annual returns to be filed with the Labour Welfare Board summarising annual contributions. Verify applicability for your state.

States Where LWF Does Not Apply

The following major states do not have a State Labour Welfare Fund Act or have not yet operationalised their LWF provisions:

Andaman & NicobarArunachal PradeshAssamBiharHimachal PradeshJammu & KashmirJharkhandKerala (Factories)ManipurMeghalayaMizoramNagalandSikkimTripuraUttar PradeshUttarakhand

Note: Kerala has a specific LWF Act for shops and commercial establishments (not factories). Always verify applicability for your specific establishment type and state.

Multi-location employers must register and contribute to the Labour Welfare Fund separately in each applicable state where they have employees. A manufacturing company with plants in Maharashtra, Karnataka, and Haryana has three separate LWF obligations — different rates, different due dates, different boards.

LWF FAQs

Labour Welfare Fund — Frequently Asked Questions

Is LWF applicable to contract workers on third-party payrolls?

Yes — LWF applies to the immediate employer (the contractor or labour supply agency) whose payroll the contract worker is on. The contractor is responsible for deducting and remitting LWF for their employees. However, under some state Labour Welfare Fund Acts (particularly those modelled on the CLRA framework), if a contractor fails to make LWF contributions, the principal employer may be held liable. This is one reason vendor compliance monitoring should include LWF challan verification alongside EPF and ESIC.

What is the LWF contribution rate in Delhi?

Under the Delhi Labour Welfare Fund Act, 1997, the LWF contribution is: Employee share ₹5 per half-year; Employer share ₹20 per half-year; Total ₹25 per employee per half-year. Contributions are due by 15 January (for the July–December period) and 15 July (for the January–June period). The contribution is collected on the last working day of the half-year period and remitted to the Delhi Labour Welfare Board.

Which LWF-applicable states have the highest employer contribution?

On a per-half-year basis, the highest employer LWF contributions are: Haryana and Punjab (₹50 per employee per 6 months), Karnataka (₹40 per employee per 6 months), and Goa (₹60 per employee per 6 months). On a monthly basis, Kerala has the highest contribution with an employer share of ₹30 per employee per month. For annual contributors, the comparison is more complex — Goa's ₹120/year employer share (₹60 × 2 half-years) is among the highest in absolute terms.

How is LWF different from EPF and ESIC?

EPF (Employees' Provident Fund) and ESIC (Employees' State Insurance) are Central government schemes covering all eligible establishments across India — mandatory under the EPF Act 1952 and ESI Act 1948 respectively. LWF is a state-level contribution that operates independently. The key differences: (1) LWF contribution amounts are very small (₹5–₹40 per employee per period) compared to EPF (12% of basic + DA) and ESIC (1.75% + 4.75% of gross wages); (2) LWF is administered by State Labour Welfare Boards; EPF by EPFO and ESIC by ESIC Corporation; (3) LWF funds are used for worker welfare activities; EPF is a retirement savings scheme; ESIC provides health and social security benefits.

Track LWF Contributions Across All 16 States Automatically

Iztty tracks LWF applicability, contribution amounts, and due dates for every branch across all applicable states — ensuring no LWF obligation is missed and every contribution is documented for inspection readiness.

Book a Demo