Labour Welfare Fund in India: State-Wise Rates
The Labour Welfare Fund (LWF) is a state-level joint contribution from employers and employees that funds worker welfare measures. Only 16 states levy it, and the amount, periodicity, and applicability all differ by state. Find your state below for the exact rate and filing schedule.
Updated: 01 August 2026LWF Contribution Rates by State
| State | Contribution | Periodicity |
|---|---|---|
| Andhra Pradesh | ₹30/year (employee) + ₹70/year (employer) | annual |
| Chandigarh | ₹5/month (employee) + ₹20/month (employer) | monthly |
| Chhattisgarh | ₹15/half-year (employee) + ₹45/half-year (employer) | half-yearly |
| Delhi (NCT) | ₹0.75/half-year (employee) + ₹2.25/half-year (employer) | half-yearly |
| Goa | ₹60/half-year (employee) + ₹180/half-year (employer) | half-yearly |
| Gujarat | ₹6/half-year (employee) + ₹12/half-year (employer) | half-yearly |
| Haryana | 0.2% of wages (employee, capped ₹34/month) + 2x employee share (employer, capped ₹68/month) | monthly |
| Karnataka | ₹50/year (employee) + ₹100/year (employer) + ₹50/year (state government) | annual |
| Kerala | Shops/commercial: ₹50/month each. Other establishments: ₹45/half-year each. | monthly (shops/commercial establishments); half-yearly (other establishments) |
| Madhya Pradesh | ₹10/half-year (employee) + ₹30/half-year (employer) | half-yearly |
| Maharashtra | ₹25/half-year (employee) + ₹75/half-year (employer) | half-yearly |
| Odisha | ₹20/half-year (employee) + ₹40/half-year (employer) | half-yearly |
| Punjab | ₹5/month (employee) + ₹20/month (employer) | monthly |
| Tamil Nadu | ₹20/year (employee) + ₹40/year (employer) | annual |
| Telangana | ₹2/year (employee) + ₹5/year (employer) | annual |
| West Bengal | ₹3/half-year (employee) + ₹15/half-year (employer) | half-yearly |
* Rates are set by each state's Labour Welfare Board and revised periodically. Click through to a state for applicability, due dates, registration, and exemptions. Always verify against the official state notification before filing.
What Is the Labour Welfare Fund?
The Labour Welfare Fund is a statutory, state-administered corpus that funds welfare measures for workers, such as medical care, housing, education, and recreational facilities. Unlike ESI or PF, it is a state subject: only 16 states and union territories currently levy it, and each sets its own Act, contribution amount, and collection schedule.
Both the employer and employee contribute. The employer's share is typically higher, and the employer is responsible for deducting the employee's portion and remitting the combined amount to the state Labour Welfare Board, monthly, half-yearly, or annually depending on the state.
Who Has to Pay
Employees of establishments covered under the applicable state Act (factories, shops, motor transport undertakings, and others) once the state's minimum-headcount threshold is met. Managerial and supervisory staff above a state-specific wage cutoff are usually exempt.
Common Exemptions
- Managerial and supervisory employees above the state's wage threshold
- Apprentices under the Apprentices Act, 1961
- Part-time employees (in several states)
- Establishments below the state's minimum-employee threshold
Registration
Employers register with their state's Labour Welfare Board, usually online, submitting establishment details, licenses, and employee counts. Registration is separate for every state an employer operates in; one registration does not cover multi-state operations.
Periodicity Varies Widely
Haryana, Punjab, and Chandigarh collect monthly; most other states collect half-yearly (June and December); Andhra Pradesh, Karnataka, Tamil Nadu, and Telangana collect annually. Kerala uses different schedules for different establishment types.
Frequently Asked Questions
What is the Labour Welfare Fund (LWF)?
Is LWF applicable in every state?
How often is LWF deducted?
Who contributes to LWF: employer, employee, or both?
Is there a minimum headcount for LWF to apply?
What happens if LWF isn't paid on time?
Never miss an LWF filing deadline again
Engage HRMS auto-detects the right LWF contribution and schedule for every employee based on their work-location state, deducts it automatically, and generates ready-to-file challans across every state you operate in.
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