State-wise LWF contribution rates for employees and employers, payment frequency, applicable acts and due dates. Know exactly how much to deduct and when to remit.
The Labour Welfare Fund is a statutory contribution maintained by State Governments under their respective Labour Welfare Fund Acts. It is one of India's oldest social security mechanisms for organised-sector workers, predating the national minimum wages framework in several states.
LWF is governed by Entry 23 of the State List (Seventh Schedule) of the Constitution of India, which empowers state governments to enact legislation relating to social security and labour welfare in factories, mines and other establishments.
Contributions are made by both the employee and employer. The employer's share is typically twice the employee's contribution, and the fund is remitted to the state Labour Welfare Board at prescribed intervals.
LWF is not governed by one common national law. Every state that levies LWF has its own Act, Rules, Contribution Rates, Due Dates, and Welfare Board.
| State | Status | Employee (₹) | Employer (₹) | Total (₹) | Frequency | Payment Due | Applicable Act |
|---|---|---|---|---|---|---|---|
| Andhra Pradesh | Applicable | ₹20 | ₹40 | ₹60 × 2 | Half-Yearly | 30 Jun & 31 Dec | AP Labour Welfare Fund Act, 1987 |
| Chhattisgarh | Applicable | ₹20 | ₹60 | ₹80 × 2 | Half-Yearly | 30 Jun & 31 Dec | CG Labour Welfare Fund Act, 1990 |
| Delhi | Applicable | ₹0.75/month | ₹2.25/month | ₹36/year | Yearly | 15 February | Delhi Labour Welfare Fund Act, 1997 |
| Goa | Applicable | ₹60/year | ₹120/year | ₹180/year | Yearly | 31 December | Goa Labour Welfare Fund Act, 1986 |
| Gujarat | Applicable | ₹6/month | ₹12/month | ₹54 × 2 | Half-Yearly | 15 Apr & 15 Oct | Gujarat Labour Welfare Fund Act, 1953 |
| Haryana | Applicable | ₹25 | ₹50 | ₹75 × 2 | Half-Yearly | 15 Jan & 15 Jul | Haryana Labour Welfare Fund Act, 1965 |
| Jharkhand | Applicable | ₹25 | ₹50 | ₹75 × 2 | Half-Yearly | 30 Jun & 31 Dec | Jharkhand Labour Welfare Fund Act, 1996 |
| Karnataka | Applicable | ₹50/year | ₹100/year | ₹150/year | Yearly | 31 December Revised 2025: threshold reduced from 50 to 10 employees | Karnataka Labour Welfare Fund (Amendment) Act, 2025 |
| Kerala | Applicable | ₹20 | ₹40 | ₹60 × 2 | Half-Yearly | 30 Jun & 31 Dec | Kerala Labour Welfare Fund Act, 1975 |
| Madhya Pradesh | Applicable | ₹15/month | ₹45/month | ₹180 × 2 | Half-Yearly | 30 Jun & 31 Dec | MP Labour Welfare Fund Act, 1982 |
| Maharashtra | Applicable | ₹25 | ₹50 | ₹75 × 2 | Half-Yearly | 30 Jun & 31 Dec | Maharashtra Labour Welfare Fund Act, 1953 |
| Odisha | Applicable | ₹20 | ₹40 | ₹60 × 2 | Half-Yearly | 30 Jun & 31 Dec | Odisha Labour Welfare Fund Act, 1996 |
| Punjab | Applicable | ₹10/month | ₹20/month | ₹360/year | Monthly | 15th of each month | Punjab Labour Welfare Fund Act, 1965 |
| Tamil Nadu | Applicable | ₹20 | ₹40 | ₹60 × 2 | Half-Yearly | 30 Jun & 31 Dec | TN Labour Welfare Fund Act, 1972 |
| Telangana | Applicable | ₹20 | ₹40 | ₹60 × 2 | Half-Yearly | 30 Jun & 31 Dec | TS Labour Welfare Fund Act, 1987 |
| West Bengal | Applicable | ₹3/month | ₹6/month | ₹108/year | Yearly | 31 December | WB Labour Welfare Fund Act, 1974 |
| Feature | Half-Yearly States | Yearly States | Monthly States |
|---|---|---|---|
| Remittance Cycle | Every 6 months | Once a year | Every month |
| Examples | Maharashtra, Tamil Nadu, Kerala | West Bengal, Karnataka, Goa | Punjab |
| Primary Due Date | 30 Jun & 31 Dec | 31 December | 15th of month |
| Payroll Complexity | Moderate | Lower | Higher |
LWF Registration & Remittance
Establishments covered by a state's LWF Act must register with the Labour Welfare Board and remit contributions by the prescribed due date. LWF is deducted from the last working day's salary of the period. Non-payment attracts penal interest of 12–18% p.a. plus prosecution in some states. LWF is NOT applicable to employees drawing above the state threshold (usually ₹15,000–₹25,000/month). Our Payroll team handles LWF for you →
The LWF collection model follows a broadly similar pattern across all applicable states.
Each state enacts its own complete legal framework governing the fund:
Karnataka revised its LWF Act in 2025, significantly widening the applicability net. The employee threshold was reduced from 50 to just 10, bringing thousands of smaller establishments under the LWF compliance umbrella.
We manage LWF registration, timely contribution deductions and semi-annual remittances across all your operating states.