The Labour Welfare Fund is a provision of the government to ensure some basic and necessary services, amenities and facilities to the workers. This Act is to ensure the better life and standard of living of the employees. There are separate (State) Labour Welfare Fund Act and (State) Labour Welfare Fund Rule for different states & Union Territories. Accordingly, separate Labour Welfare Board is created for each different States and UTs and different rate of Contribution for Employer and Employee. The Labour Welfare Fund is created to ensure the extended support for the social assistance for workers in the certain sectors.
The LWF is applicable in 16 states of India. Please find the details below:
|
State |
Employee Contribution |
Employer Contribution |
Total Contribution |
Frequency of Contribution |
|
Andhra Pradesh |
30 |
70 |
100 |
Annual |
|
Chandigarh (Union Territory) |
5 |
20 |
25 |
Monthly |
|
Chhattisgarh |
15 |
45 |
60 |
Half Yearly |
|
Delhi |
0.75 |
2.25 |
3 |
Half Yearly |
|
Goa |
120 |
360 |
480 |
Annual |
|
Gujarat |
6 |
12 |
18 |
Half Yearly |
|
Haryana |
0.2% of salary of employee or wages or any remuneration subject to a limit of Rs. 25/- |
Twice the amount contributed by such employee |
- |
Monthly |
|
Karnataka |
20 |
40 |
60 |
Annual |
|
Kerala |
20 |
20 |
40 |
Monthly |
|
Kerala |
4 |
8 |
12 |
Half Yearly |
|
Madhya Pradesh |
10 |
30 |
40 |
Half Yearly |
|
Maharashtra |
6/12 |
18/36 |
24/48 |
Half Yearly |
|
Odisha |
20 |
40 |
60 |
Not Applicable |
|
Punjab |
5 |
20 |
25 |
Monthly |
|
Tamil Nadu |
10 |
20 |
30 |
Annual |
|
Telangana |
2 |
5 |
7 |
Not Applicable |
|
West Bengal |
3 |
6 |
9 |
Half Yearly |
Under the Labor Welfare act, a laborer must be provided with all the facilities to improve their working condition and raise their standard of living.
The state government has introduced the Labor Welfare Fund Act to help laborers working in various sectors across the country.
In India, most laborers work in unorganized sectors, which makes job availability uncertain for them. So the government came up with the Labor Welfare Fund.
It is a fund in which both the employer and employee welfare fund contribution money annually or monthly (as decided by the state).
It is believed that this act will help improve the working conditions, social security, and the standard of living of the labor. The laborers can now fight for their welfare acts and rights if they do not provide the minimum.
Under this act, the employer is entitled to provide a list of benefits to their services. This will help in making their jobs more secure and will also improve their overall standard of living. The employer needs to make monthly labor welfare fund deductions with the help of PionHR.
Labour Welfare Fund Applicability
The Labour Welfare Fund applicability varies; not every employee comes under the labor welfare act. The primary criteria that need to be satisfied are
Labour Welfare Fund was put in place so that the employees could be taken care of. The LWF includes all housing, family care, and medical services such as free medical treatment, Women and Children’s welfare, Education to all children, and many more.
The employee is entitled to spend the deposited money to the Labour Welfare Fund on:
Companies should have an efficient payroll management system. Payroll management is an integral part of any company. Without a well-managed payroll software India, a company cannot function efficiently.
If you are looking for an experienced payroll Outsourcing company in Delhi in this field, do check out PionHR. They are the best in this field.
PionHR is one of India’s leading independent payroll management company. If you need a reliable and efficient company to handle your Labour Welfare Fund deductions always choose PionHR. We ensure hassle-free operation and inform and update you about any minor or major changes regularly. Our main aim is to satisfy and reduce the burden of our clients. Do check out PionHR website to know more about us.
