AN OVERVIEW ON LABOUR WELFARE FUND

AN OVERVIEW ON LABOUR WELFARE FUND

By Advocate Siddharth Macker
The Labour Welfare Fund (LWF) is a noble initiative and scheme
that was introduced by the Government of India to aid and assist,
and in turn provide a framework of social security in the
unorganised sector.
Labour Welfare Fund is applicable across the country in states
specified hereunder and mandates certain services, benefits and
other facilities which are offered by an employer to his employees.
This social security scheme takes effect in the form of contributions
from the employer and the employee. Labour Welfare Fund differs
from state to state and hereunder are the states for which LWF is
applicable:
• Andhra Pradesh
• Chandigarh
• Chattisgarh
• Delhi
• Goa, Diu and Daman
• Gujarat
• Haryana
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Odisha
• Punjab
• Tamil Nadu
• Telangana
• West Bengal

State Rules :
The scheme is managed and regulated by individual states, thereby
the rules framed also vary from state-to-state. Thus, any
establishment having multiple offices in different states, shall be
well informed and updated with the rules, regulations and
amendments that are privy to the scheme

Periodicity of Remittance:
The State Labour Welfare Board of each state is entrusted with the
responsibility of deciding the rate of contribution and the frequency
at which such contribution has to be remitted.
The contribution to the Labour Welfare Fund may occur
• Annually
• Half-Yearly
• Monthly
Benefits Extended to Beneficiaries:

• Improved social security
• Education of the children of the workers.
• Under the housing amenities, loans are offered to industrial
workers for the construction of houses at discounted rates.
• Subsidiary occupations and home industries for women and
unemployed persons.
• Vocational training.
• Nutritious food to the children of employees.
• Scholarship for children of workers.
• Provide medical facilities

LWF Rules in some States:
1. Maharashtra
• Any establishment registered in Maharashtra, having 5 or
more employees
• LWF in Maharashtra is contributed bi-annually.

• The contribution is to be made for Jan-to-June and July-to-
December.

2. Kerala
• Any establishment that is registered in Kerala and has 2 or
more employees
• LWF in Kerala is to be contributed every month.
• The amount deducted from one month must be paid before the
5th day of the next.

3. Gujrat
• Any Establishment employing ten (10) or more employees/
persons.
• LWF in Gujarat is contributed Bi-Anually.

• The contribution is to be made for Jan-to-June and July-to-
December.

4. Delhi
• Any Establishment employing 5 or more employees/persons.
• LWF in Delhi is contributed Bi-Anually.

• The contribution is to be made for Jan-to-June and July-to-
December.

5. Haryana
• All employees employed, directly by or through any agency
(including a contractor) with or without the knowledge of the
principal employer, for remuneration in any factory or
establishment to do any work connected with its affairs.
• Data can be uploaded on the portal on a monthly basis.
• Provision to make payment is made towards the end of year