How the fund works
A labour welfare fund pays for welfare schemes for workers in the state — scholarships, medical aid, housing, recreation. Where a state has one, the employer deducts a small employee contribution, adds its own, and pays both to the state’s welfare board on the state’s schedule.
Coverage, exemptions (managers and supervisors above a salary are often exempt) and due dates are set by each state’s Act and rules.
Contributions by state
States not listed have no labour welfare fund contribution for most establishments.
| State | Contribution per employee | Deducted in |
|---|---|---|
| Andhra Pradesh | Employee ₹30, employer ₹70 | Dec |
| Chhattisgarh | Employee ₹15, employer ₹45 | Jun and Dec |
| Delhi | Employee ₹0.75, employer ₹2.25 | Jun and Dec |
| Goa | Employee ₹60, employer ₹180 | Jun and Dec |
| Gujarat | Employee ₹6, employer ₹12 | Jun and Dec |
| Haryana | Employee 0.2% of wages up to ₹35; employer twice the employee’s | Every month |
| Karnataka | Employee ₹50, employer ₹100 | Dec |
| Kerala | Employee ₹50, employer ₹50 | Every month |
| Madhya Pradesh | Employee ₹10, employer ₹30 | Jun and Dec |
| Maharashtra | Employee ₹25, employer ₹75 | Jun and Dec |
| Odisha | Employee ₹20, employer ₹40 | Jun and Dec |
| Punjab | Employee ₹5, employer ₹20 | Every month |
| Tamil Nadu | Employee ₹20, employer ₹40 | Dec |
| Telangana | Employee ₹2, employer ₹5 | Dec |
| West Bengal | Employee ₹3, employer ₹15 | Jun and Dec |
WebHR deducts LWF in the months the state collects it, from the employee’s work state, adds the employer share, and exports the LWF return grouped by the state’s period (month, half-year or year). Haryana’s is worked out as a percentage of the month’s wages, up to the cap.
Due dates
| What | When | How often |
|---|---|---|
| Labour welfare fund (half-yearly states) | After the June and December deductions, by the state’s date | Half-yearly |
| Labour welfare fund (annual states) | After the December deduction, by the state’s date | Annual |
If a due date falls on a holiday, the authority’s own rule for the next working day applies. Full compliance calendar
References
Related
Plain-language guidance for HR teams, not legal advice. Checked against the sources above on 29 September 2026; the notification or your authority’s portal is final. Spotted something out of date? Tell us.