Labour Welfare Fund
The Labour Welfare Fund (LWF) is a small statutory contribution employers and employees make to a state-run fund. The state labour welfare board decides the amount and how often it is collected. The money funds welfare schemes for workers.
Applicability
Section titled “Applicability”The LWF Act is in force in a limited number of states. Where it applies, both you and your employee contribute a small amount each pay period, and you remit the combined sum to the state board on the prescribed form and due date.
The frequency of collection differs by state — monthly, half-yearly, or yearly.
Current states
Section titled “Current states”The Act currently applies in these states and union territories:
Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, and West Bengal.
Rates change and are set by each state’s labour board. This table reflects recent levels and is a guide only — confirm the current rate and frequency for the state that applies to you.
| State | Amount (₹) | Frequency |
|---|---|---|
| Andhra Pradesh | 100 | Yearly |
| Chandigarh | 25 | Monthly |
| Chhattisgarh | 120 | Half-yearly |
| Delhi | 3 | Half-yearly |
| Goa | 240 | Half-yearly |
| Gujarat | 18 | Half-yearly |
| Haryana | 75 | Monthly |
| Karnataka | 60 | Yearly |
| Kerala | 40 | Monthly |
| Madhya Pradesh | 40 | Half-yearly |
| Maharashtra | 48 | Half-yearly |
| Odisha | 30 | Half-yearly |
| Punjab | 25 | Monthly |
| Tamil Nadu | 30 | Yearly |
| Telangana | 7 | Yearly |
| West Bengal | 18 | Half-yearly |
What the fund pays for
Section titled “What the fund pays for”The fund supports workers in three areas:
- Standard of living — food, education and scholarships for workers’ children, medical care for workers and their families, and housing at concessional rates.
- Working conditions — transport, reading rooms, libraries, vocational training, and recreational facilities.
- Social security — medical treatment and schemes for women, the unemployed, and certain industries.
Under the Labour Codes
Section titled “Under the Labour Codes”Welfare funds for building and other construction workers, and the social security framework for workers, now sit under the Social Security Code. The LWF itself remains a state-level contribution. See the Labour Codes overview.