Labor Welfare Fund
Lists of Government & Public Holidays in India 2025
Labour welfare fund is a statutory contribution managed by individual state authorities. The state labour welfare board determines the amount and frequency of the contribution. The contribution and periodicity of remittance differs with every state. In some states the periodicity is annual (Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc) and in some states it is to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra etc).
-
Manage by the Every State Government Authority
Labour Welfare Fund (LWF) is a statutory fund managed by state governments in India to provide financial aid and welfare facilities to workers. It is funded by contributions from employers and employees, and in some states, the government.
-
Benefits of Labour Welfare Fund Act across states
With the Labor Board managing the Labor Welfare Fund, it consistently delivers a wide range of initiatives to improve the well-being of workers and their dependents. As a founder and employer, it’s vital to be well-informed about how the government utilizes your contributions and the positive impact it has on those in need.
Better Work Conditions- Safer and healthier working environment
- Reduced working hours
- Improved wages and employee benefits
- Increased job security
applicability of the act
ACT
The Punjab Labour Welfare Fund Act,1965
rule
The Punjab Labour Welfare Fund Rules 1966
applicability
Any Employer/Establishment employing twenty or more employees/persons
frequency
Monthly
Labour Welfare Fund Contribution
Category
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment
Employee Contribution
5
Employer Contribution
20
Total Contribution
25
Date Of Deduction
Last Day Of Month
Last Date Of Submission
15th April 15th October
ACT
The Chandigarh Labour Welfare Fund Act,1965
rule
The Chandigarh Labour Welfare Fund Rules 1966
applicability
Any Employer/Establishment employing twenty or more employees/persons
frequency
Monthly
Labour Welfare Fund Contribution
Category
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment
Employee Contribution
5
Employer Contribution
20
Total Contribution
25
Date Of Deduction
Last Day Of Month
Last Date Of Submission
15th April 15th October
ACT
The Punjab Labour Welfare Fund Act,1965
rule
The Punjab Labour Welfare Fund Rules 1966
applicability
Any Employer/Establishment employing twenty or more employees/persons
frequency
Monthly
Labour Welfare Fund Contribution
Category
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment
Employee Contribution
5
Employer Contribution
20
Total Contribution
25
Date Of Deduction
Last Day Of Month
Last Date Of Submission
15th April 15th October
ACT
The Punjab Labour Welfare Fund Act,1965
rule
The Punjab Labour Welfare Fund Rules 1966
applicability
Any Employer/Establishment employing twenty or more employees/persons
frequency
Monthly
Labour Welfare Fund Contribution
Category
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment
Employee Contribution
5
Employer Contribution
20
Total Contribution
25
Date Of Deduction
Last Day Of Month
Last Date Of Submission
15th April 15th October
ACT
The Punjab Labour Welfare Fund Act,1965
rule
The Punjab Labour Welfare Fund Rules 1966
applicability
Any Employer/Establishment employing twenty or more employees/persons
frequency
Monthly
Labour Welfare Fund Contribution
Category
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment
Employee Contribution
5
Employer Contribution
20
Total Contribution
25
Date Of Deduction
Last Day Of Month
Last Date Of Submission
15th April 15th October
non-applicable states
- 01 Central
- 05 Chhattisgarh
- 09 Goa
- 13 Ladakh
- 02 Andaman Nicobar Island
- 06 Dadra and Nagar Haveli
- 10 Haryana
- 14 Lakshadweep
- 03 Arunachal Pradesh
- 07 Daman and Diu
- 11 Himachal Pradesh
- 15 Rajasthan
- 04 Chandigarh
- 08 Delhi
- 12 Jammu and Kashmir
- 16 Uttar Pradesh
-
Scope for Welfare Labour Fund
The Labor Welfare Fund Act has a broad scope that covers housing, family care, and the health of workers. It includes provisions for medical examinations, general treatment clinics, support for infants, education for women, facilities for workers’ activities, financial assistance for marriages, educational support, and funeral benefits. These funds are typically funded through contributions from both employers and employees, with some states also receiving contributions from the government.
-
Applicability of the Act
Start: To ensure the welfare of workers and offer social security, the government has enacted the Labour Welfare Fund Act. It is worth noting that this act is currently enforced in 16 out of 37 states, including union territories.
-
How Does the Labour Welfare Fund Contribution Process Work?
The Labour Welfare Fund (LWF) contribution can be made on a yearly basis, depending on the state-specific Act. If the contribution is yearly, the employer must divide the deduction period into two consecutive periods, as specified in the state-specific Act. The employer then deducts the LWF contribution from the employee’s salary and submits it to the LWF board in the prescribed form by the due date.
-
The uses of the Labour Welfare Fund
In general, the Labour Welfare Fund can be used to cover the following expenses:
- Educational facilities for the children of workers
- Medical facilities for workers and their families (private and public sector)
- Transport facilities for employees commuting to work
- Recreational facilities such as music rooms, dance studios, theatres, sports fields, and art galleries
- Low-interest loans for industrial employees to support home construction
- Trips, guided journeys, and vacation accommodation facilities
- Support for small-scale businesses and secondary employment for women and unemployed individuals
- Reading rooms and libraries
- Vocational training programs
- Nutritious food facilities for children of employees