State-by-state guide
Labour Welfare Fund contributions by state
The Labour Welfare Fund is a small contribution from employees and employers to a state's welfare board, usually paid once or twice a year. Amounts and dates differ by state. These are the states we have checked on official websites.
Next LWF due dates
- 31 DecHaryanaMonthly contributions, paid togetherin 70 days
- 15 JanKarnataka₹50 employee, ₹100 employerin 85 days
- 15 JanMaharashtra₹25 employee, ₹75 employerin 85 days
- 15 JanWest Bengal₹3 employee, ₹30 employerin 85 days
Dates from each state's Act or welfare board. Karnataka's is for the calendar year just ended.
The fund
What the Labour Welfare Fund pays for
Several states run a Labour Welfare Fund under their own Act. A board collects small contributions from employees, employers and, in several states, the government, and spends them on welfare schemes for workers and their families.
Set by each state's Act
There is no central LWF law. Each state that has one fixes the amount, how often it is paid and the date, so a company in four states can have four different LWF calendars.
Fixed amounts per employee
Every state on this page except Haryana charges a flat sum for each employee, not a percentage of wages. In Karnataka it is ₹50 from the employee and ₹100 from the employer each year.
Deducted in set months only
The employee's share can be deducted only from the wages the Act names, such as December in Karnataka, or June and December in Maharashtra. The employer's share is never recovered from wages.
Spent on workers' welfare
In Karnataka the board's schemes include educational assistance for workers' children, medical and accident assistance, maternity benefit for women workers and help with funeral costs.
The LWF year
When each state collects
Most states collect twice a year, on June and December wages, or once after the year closes. Haryana, Punjab and Chandigarh count it on every month's wages. The ruler shows which wages carry the deduction and when payment is due.
Twice a year6 states
Maharashtra
Maharashtra: deducted from June and December wages. Due 15 July; Due 15 January.
West Bengal
West Bengal: deducted from June and December wages. Due 15 July; Due 15 January.
Gujarat
Gujarat: deducted from June and December wages. Due 15 July; Due 15 January.
Delhi
Delhi: deducted from June and December wages. Due 15 July; Due 15 January.
Madhya Pradesh
Madhya Pradesh: deducted from wages. Due 15 July; Due 15 January.
Odisha
Odisha: deducted from June and December wages. Due 15 January; Due 15 July.
Once a year4 states
Karnataka
Karnataka: deducted from December wages. Due 15 January.
Tamil Nadu
Tamil Nadu: deducted from December wages. Due 31 January.
Andhra Pradesh
Andhra Pradesh: deducted from December wages. Due 31 January.
Telangana
Telangana: deducted from December wages. Due 31 January.
Every month3 states
Haryana
Haryana: deducted every month. Due 31 December.
Punjab
Punjab: deducted every month. Due 15 October; Due 15 April.
Chandigarh
Chandigarh: deducted every month. Due 15 October; Due 15 April.
Contributions
What employees and employers pay, by state
Amounts per employee, as the board or the Act states them. Karnataka first, then the other states we have checked, each with its source.
Karnataka
Karnataka Labour Welfare Fund Act, 1965
₹50
a year, per employee
₹100
a year, per employee
- 15 January, for each employee on the register on 31 December
Covers factories, plantations, workshops, motor transport and contract labour establishments, and shops, commercial and IT establishments with 10 or more workers (lowered from 50 by Act 05 of 2026, from 7 January 2026). The state adds ₹50 for each employee.
Online only. Late payment carries penal interest of 12% for the first three months and 18% after that.
Maharashtra
Maharashtra Labour Welfare Fund Act, 1953
₹25
each half-year, per employee
₹75
each half-year, per employee
- 15 July, for employees on the register on 30 June
- 15 January, for employees on the register on 31 December
The employer pays three times the employee's share, from the 2024 amendment. Managerial staff, and supervisors earning over ₹3,500 a month, are outside the Act.
Online, through the board's establishment login.
Tamil Nadu
Tamil Nadu Labour Welfare Fund Act, 1972
₹20
a year, per employee
₹40
a year, per employee
- 31 January, deducted on 31 December
Rates from G.O. 161 of 2 December 2022. The state adds ₹20. Managerial staff and supervisors earning over ₹15,000 a month are excluded.
Online, with Form A, on the board's portal.
Andhra Pradesh
Andhra Pradesh Labour Welfare Fund Act, 1987
₹30
a year, per employee
₹70
a year, per employee
- 31 January, for employees on the register on 31 December, with Form F
The 2020 order applies the fund to any employer with one or more employees. The Act's text on the board's site still says 20 or more for shops and establishments.
Online only, from G.O. Ms. No. 9 of 7 December 2020.
Telangana
Telangana Labour Welfare Fund Act, 1987
₹2
a year, per employee
₹5
a year, per employee
- 31 January, deducted on 31 December
The amounts in section 10 of the Act as published by the Labour Department, which also puts the fund's contribution at ₹7 per worker a year.
West Bengal
West Bengal Labour Welfare Fund Act, 1974
₹3
each half-year, per employee
₹30
each half-year, per employee
- 15 July, for the half-year ending 30 June
- 15 January, for the half-year ending 31 December
The employer's ₹30 applies from 1 January 2024. Covers shops and commercial establishments with 10 or more persons, factories and motor transport.
Online, on the Labour Department's LWF portal.
Gujarat
Gujarat Labour Welfare Fund Act, 1953
₹6
each half-year, per employee
₹12
each half-year, per employee
- 15 July, for the half-year ending 30 June
- 15 January, for the half-year ending 31 December
Rates in force from December 2016. Covers shops and establishments with 10 or more employees.
Online only, since June 2022.
Delhi
Bombay Labour Welfare Fund Act, 1953, as extended to Delhi
₹0.75
each half-year, per employee
₹2.25
each half-year, per employee
- 15 July, for employees on the register on 30 June
- 15 January, for employees on the register on 31 December
Establishments with five or more persons. The Delhi government adds ₹1.50 for each employee.
Madhya Pradesh
Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
₹10
each half-year, per employee
₹50
each half-year, per employee
- 15 July, for the half-year to June
- 15 January, for the half-year to December
The employer pays ₹50 under an amendment notified on 28 January 2025, with a minimum of ₹2,500 a half-year. Covers factories and establishments with more than 9 workers.
Online, on the board's portal, with Form A.
Odisha
Odisha Labour Welfare Fund Act, 1996, and Rules, 2015
₹10
each half-year, per employee
₹20
each half-year, per employee
- 15 January, for employees on the register on 31 December
- 15 July, for employees on the register on 30 June
₹20 and ₹40 a year in all, paid in two halves. Covers factories, motor transport, and shops and establishments with 20 or more persons.
With Form F, through the Pareshram portal.
Haryana
Punjab Labour Welfare Fund Act, 1965, as amended for Haryana
0.2% of pay, up to ₹35
a month, per employee
Twice the employee's, up to ₹70
a month, per employee
- Before 31 December, for the year's contributions, paid online
The ₹35 cap applies from 1 January 2026 and is indexed to consumer prices each January. Covers factories, and shops and commercial establishments with 10 or more employees.
Interest of 12% a year applies if payment is more than a month late.
Punjab
Punjab Labour Welfare Fund Act, 1965
₹5
a month, per employee
₹20
a month, per employee
- 15 October, for April to September
- 15 April, for October to March
Rates from Punjab Act 32 of 2014. An amendment passed by the Vidhan Sabha in July 2025 raises them to ₹10 and ₹40 a month; we have not found it notified in the Gazette.
Online, on the Labour Department's e-Labour portal.
Chandigarh
Punjab Labour Welfare Fund Act, 1965, as extended to Chandigarh
₹5
a month, per employee
₹20
a month, per employee
- 15 October, for April to September
- 15 April, for October to March
Rates in force from April 2018.
Online, through the Labour Department's application.
Other states not yet checked here
A state appears in the table only once we have read its contribution on the board's or the department's own website. Until then, ask us for the current figures.
- Goa. ₹60 from the employee and ₹180 from the employer each half-year, due by 31 July and 31 January.
- Kerala. Shops and offices pay monthly to the Kerala Shops and Commercial Establishments Workers' Welfare Fund Board: ₹50 from the worker and ₹50 from the employer. The board says this will rise to ₹100.
- Chhattisgarh. ₹15 from the employee and ₹45 from the employer each half-year, due by 15 July and 15 January.
How we handle it
LWF on each state's calendar
LWF is part of the payroll compliance we run every month, along with PF, ESI and Professional Tax. Each state's dates sit on one calendar.
- 01
Which locations are covered
We start with the laws that apply to each of your locations. For LWF that means which establishments fall under a state's Act, and for which employees.
- 02
Deducted from the right month's wages
When we run your payroll, the employee's share is deducted only in the months the state collects, and your share is worked out with it.
- 03
Paid to each board on its own date
Contributions are remitted to each state's Labour Welfare Board by its due date, and the receipts are filed with your payroll records for any inspection.
- 04
Contractors checked as well
For contractors working at your sites, our contractor and vendor compliance service checks that their EPF, ESIC and LWF payments are made on time.
FAQ
Questions about the Labour Welfare Fund
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
What is the Labour Welfare Fund?
A fund set up under a state's Labour Welfare Fund Act and run by a welfare board. Employees and employers, and in several states the government, pay small fixed contributions, which the board spends on welfare schemes for workers. In Karnataka and Maharashtra, fines deducted from wages and wages left unpaid for three years also go to the board.
How much is the LWF contribution in Karnataka?
₹50 from the employee and ₹100 from the employer each year, for every employee on the register on 31 December, and the state adds ₹50. The employee's share comes out of December wages, and both are paid online to the Karnataka Labour Welfare Board by 15 January. These amounts apply from Karnataka Act 05 of 2025.
Is LWF deducted every month?
In most states, no. Maharashtra, West Bengal, Gujarat and Delhi deduct from June and December wages and collect twice a year, while Karnataka and Andhra Pradesh collect once a year. Haryana, Punjab and Chandigarh count a contribution for every month but collect it once or twice a year.
Which states have a Labour Welfare Fund?
This page covers the states whose contributions we have read on an official source. They are Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana, West Bengal, Gujarat, Delhi, Madhya Pradesh, Odisha, Haryana, Punjab and Chandigarh. Goa, Kerala and Chhattisgarh also have welfare funds, listed below the table until we confirm their current figures. If you have staff in another state, ask us whether a fund applies there.
What happens if LWF is paid late?
In Karnataka, late payment carries penal interest of 12% for the first three months and 18% after that. The Welfare Commissioner or labour officers can also inspect and start legal proceedings. Haryana charges interest of 12% a year once payment is more than a month late. Other states set their own interest and penalties.
Does every employee have to contribute?
Not always. Each Act defines who counts as an employee. Most leave out managerial staff and supervisors above a set wage, such as ₹3,500 a month in Maharashtra and Gujarat. Coverage also depends on the size of the establishment: in Karnataka, shops and commercial establishments are covered from 10 workers.
Do you handle LWF along with payroll?
Yes. LWF is part of the payroll compliance we run. We check which of your locations are covered, deduct the employee's share in the months the state collects, and pay each board by its due date. For a quote, send us an enquiry with your states and headcount.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
