How does the Labour Welfare Fund (LWF) work in India?

The Labour Welfare Fund is a State-level statutory fund that finances welfare measures for workers (housing, recreation, education, medical assistance). 16 States and Union Territories operate an LWF, each under its own State LWF Act, with separate employee and employer contributions, contribution frequency (monthly, half-yearly or annual) and applicability thresholds. The employer deducts the employee's share, adds the employer's share, and remits the total to the State Labour Welfare Board within the prescribed period. Returns are filed half-yearly or annually depending on the State.

Welfare framework

Labour Welfare Fund

The Labour Welfare Fund is a state subject. Each State Welfare Fund Act sets up a State Labour Welfare Board, prescribes the employer and employee contribution and the frequency of contribution. This page sets out the framework, the notifying authority for each public state and the latest state notification on file.

Why we do not publish live rate tables: LWF contribution rates and contribution cycles are revised by individual State Welfare Boards. The latest notification PDF for each state is the only authoritative source.

Framework

Statutory basis

State-specific Labour Welfare Fund Acts and Rules. There is no central LWF statute; coverage, contribution rates and the contribution cycle vary by state.

Coverage

Generally applicable to employees of factories, motor transport undertakings and shops & establishments engaged in commercial work, subject to the wage/coverage thresholds and exclusions of the specific State Act.

Contributions

Both employer and employee contribute; the employer contribution is typically a higher multiple of the employee contribution. Contribution cycle is half-yearly in most states (June and December), monthly in a few.

Use of the Fund

The Board uses the Fund for welfare activities: educational scholarships, medical aid, recreation, housing, vocational training and other welfare measures notified by the State Government.

Notifying authority by state

Tamil Nadu
Labour & Employment Department, Government of Tamil Nadu (Welfare Fund Commissioner)
Tamil Nadu Labour Welfare Fund Act, 1972
No notification on file
Karnataka
Karnataka Labour Welfare Board, Department of Labour, Government of Karnataka
Karnataka Labour Welfare Fund Act, 1965
No notification on file
Maharashtra
Maharashtra Labour Welfare Board, Industries, Energy and Labour Department
Maharashtra Labour Welfare Fund Act, 1953
No notification on file
Delhi
Delhi Labour Welfare Board, Labour Department, Government of NCT of Delhi
Bombay Labour Welfare Fund Act, 1953 as extended to the NCT of Delhi (Delhi Labour Welfare Fund)
No notification on file
Telangana
Telangana Labour Welfare Board, Labour Department, Government of Telangana
Telangana Labour Welfare Fund Act, 1987
No notification on file

See the Recent updates feed for the full notification trail, or the Downloads hub for source PDFs.