Labour Welfare Fund – Applicability, Scope and Due date
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Labour Welfare Fund – Applicability, Scope and Due date

Hello, in this post, we will discuss about the Labour Welfare Fund. We will cover the following topics:

Latest update:-

As per Karnataka Labour Welfare Act, it is madatory for factory, plantations, workshops, motor, ominibus services and shops and commercial establishment/ ITBT firms more than 50 employees, charitable trust, registered societies to pay contribution in the ratio of Rs. 20:40 (employees:employers) & remit it online.

Last date is on 15-01-2021 and delay in payment will result in a interest of 12% for 1st 3 months. It will be 18% on the due amount after 3 months.

Maharashtra Labour Welfare Fund has given relaxation to all establishments for the convenience of the online Maharashtra Labour Welfare Fund contribution payment for the period of June 2020. The due date for online payment has been extended till 15th August 2020.

What is the Labour Welfare Fund?

It is a kind of financial aid for labourers to improve their working conditions, social security, and standard of living.

The Labour Welfare Fund Act includes various services, benefits and facilities for the employee by the employer.

Both the employer and the employee contribute towards this fund. But the rate and frequency of contribution and the due date differ from state to state.

In the states of Andhra Pradesh, Haryana, Karnataka, Tamil Nadu and others, it is an annual payment whereas for Gujarat, Madhya Pradesh, Maharashtra etc the payment is in June and December.

For example, in Tamil Nadu, employee contribution is Rs. 14 per annum and employer contribution is Rs. 21 per annum.

From January 2015, the maximum salary limit for this scheme is Rs. 15,000 per month. It applies to any establishment who has employed 5 or more people.

Labour Welfare Fund Applicability

The government has introduced the Labour Welfare Fund Act to provide social security to the workers.

It is implemented only in 15 out of 34 states, including union territories.

It is not applicable to all category of employees, and it depends on the wages earned and the designation of the employee.

The implementation of this Act depends on the total number of employees since its applicability differs based on the state-specific rules.

Scope of LWF Act

LWF Act includes housing, family care and worker’s health service such as giving medical examinations, a clinic for general treatment, infant welfare, women’s education, workers activity facilities, marriage, education, funeral, etc.

States following LWF

The states on which the LWF Act is implemented:

  • Andhra Pradesh
  • Chandigarh
  • Chhattisgarh
  • Delhi
  • Goa
  • Gujarat
  • Haryana
  • Karnataka
  • Kerala
  • Madhya Pradesh
  • Maharashtra
  • Odisha
  • Punjab
  • Tamil Nadu
  • Telangana
  • West Bengal

Labour welfare fund due date

Now let us see in the table below the various due dates for LWF in different states:

State or Union TerritoryContribution FrequencyDue Date
KarnatakaAnnual15 Jan
Tamil NaduAnnual31 Jan
Andhra PradeshAnnual31 Jan
Kerala (For firms under Shops and Establishment Act)Monthly20th
Kerala (For firms under Factories Act)Half Yearly20th
MaharashtraHalf Yearly15 Jul,15 Jan
GoaAnnual31 Jan
DelhiHalf Yearly15 Jul,15 Jan
PunjabMonthly15 Oct,15 Apr
Chandigarh (Union Territory)Monthly15 Oct,15 Apr
HaryanaMonthly31 Dec
Madhya PradeshHalf Yearly15 Jul,15 Jan
ChhattisgarhHalf Yearly31 Jul,31 Jan
GujaratHalf Yearly31 Jul,31 Jan
West BengalHalf Yearly15 Jul,15 Jan
PuducherryNot ApplicableNot Applicable
TelanganaNot Applicable31 Dec – Date of deduction, 31 Jan – Last date for submission
OdishaNot Applicable30 June and 31 Dec – Date of deduction, 15 July and 15 Jan – Last date for submission

With that, we have come to the end of this post on the Labour Welfare Fund.

Do you have any questions? Let us know in the comment section below.

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  • Hi, whether LWF registration is required for a Trust containing 4 employees which holds Voluntary PF registration?

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