The Labour Welfare Fund (LWF) is a statutory contribution-based scheme regulated by the state governments in India. It was introduced under the provisions of the Industrial Disputes Act of 1947 with the objective of improving the living and working conditions of employees in various sectors.

The scheme provides workers with essential welfare services  ..

Labour Welfare Fund (LWF) Applicability

The Labour Welfare Fund Act does not apply to all categories of workers working in an establishment. The applicability of the LWF differs depending upon the respective state’s Labour Welfare Fund Act. Its applicability is based on the number of employees or workers, their designation and wages earned. 

Generally, the LWF applies to factory workers earning a specific wage, establishments covered under the Shop and Establishment Act, transport services establishments, plantation workers, societies, etc.

List of states with Labour Welfare Fund

• Andhra Pradesh
• Chandigarh
• Chattisgarh
• Delhi
• Goa, Diu and Daman
• Gujarat
• Haryana
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Odisha
• Punjab
• Tamil Nadu
• Telangana
• West Bengal

Labour Welfare Fund (LWF) benefits

Generally, workers can utilise the money or contributions made to the LWF for the following purposes:

• Educational facilities for children
• Medical facilities for the workers and their families
• Transport facilities for commuting to work
• Lonas for housing facilities for constructing houses at concessional rates
• Establish home industries and subsidiary occupations for unemployed workers and women
• Vocational training
• Provide nutritious food to children

• LWF contribution

  As per the provisions of the Labour Welfare Fund Act, the employer and the worker or employee must contribute towards the Labour Welfare Fund. In most cases, the employer contributes on behalf of the workers from their salaries or wages. The contributions to the LWF are made annually, half-yearly or monthly. 

  The frequency, contribution date, and contribution amount to the Labour Welfare Fund differ from state to state. The employer needs to make the contribution by submitting it to the Labour Welfare Fund Board in the prescribed form before the due date. 

  LWF deduction

  The state-wise deduction or contribution amount towards LWF and the frequency are mentioned below:

  State	Frequency of deduction	Employee deduction (Rs.)	Employer deduction (Rs.)	Total contribution (Rs.)
  Andhra Pradesh	Yearly	30	70	100
  Chandigarh	Monthly	5	20	25
  Chattisgarh	Half-yearly	15	45	60
  Delhi	Half-yearly	0.75	2.25	3
  Goa, Diu and Daman	Half-yearly	60	180	240
  Gujarat	Half-yearly	6	12	18
  Haryana	Monthly	31	62	93
  Karnataka	Yearly	20	40	60
  Kerala (For firms under the Shops and Establishment Act)	Monthly	50	50	100
  Kerala (For firms under the Factories Act)	Half-yearly	4	8	12
  Madhya Pradesh	Half-yearly	10	30	40
  Maharashtra (Salary up to Rs.3,000 per month)	Half-yearly	6	18	24
  Maharashtra (Salary more than Rs.3,000 per month)	Half-yearly	12	36	48
  Odisha	Half-yearly	10	20	30
  Punjab	Monthly	5	20	25
  Tamil Nadu	Yearly	20	40	60
  Telangana	Yearly	2	5	7
  West Bengal	Half-yearly	3	15	18