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PAYROLL COMPLIANCE

Labour Welfare Fund (LWF) compliance

Employee and employer LWF contributions and returns in every state that has a Labour Welfare Fund Act, on the correct periodicity and due dates.

Labour Welfare Fund (LWF)
Professional sign-offon every deliverable
Levied byState Labour Welfare Boards
Applies inAround 16 states & UTs
ContributorsEmployee and employer
PeriodicityAnnual or half-yearly
QUICK ANSWER

What is Labour Welfare Fund compliance?

Labour Welfare Fund (LWF) compliance means contributing the fixed employee and employer amounts set by a state's Labour Welfare Fund Act, depositing them on the state's schedule, annual or half-yearly, and filing the related returns. LWF applies in around 16 states and Union Territories, and rates and thresholds differ by state.

OVERVIEW

How Paalan handles Labour Welfare Fund

Labour Welfare Fund contributions are governed by state legislation and apply in around 16 states and Union Territories. Contribution amounts, applicability thresholds, and whether payment is annual or half-yearly all vary by state.

We identify where LWF applies to you, compute employee and employer shares, prepare challans and returns, and keep the records ready for inspection.

SCOPE OF SERVICES

What's included

Everything we take ownership of under Labour Welfare Fund (LWF).

01

Applicability

State-wise assessment of LWF applicability for each establishment.

02

Contribution computation

Employee and employer contributions as per the current state rates.

03

Remittance

Challans prepared for annual or half-yearly payment by the due date.

04

Returns

Statutory LWF returns filed along with payment where required.

05

Rate updates

Revisions in rates and thresholds tracked across states.

06

Records

Contribution records maintained for inspection.

WHO NEEDS IT

Who needs Labour Welfare Fund?

  • Employers in LWF states such as Tamil Nadu, Karnataka, Maharashtra
  • Multi-state employers with branches
  • Factories and commercial establishments
  • Employers crossing state LWF thresholds
  • Companies consolidating statutory payments
Check what applies to you
KEY FEATURES

Why clients choose Paalan for Labour Welfare Fund

Coverage in every LWF state
Annual and half-yearly calendars
Rates kept current
Integrated with PT and payroll compliance
Consolidated status across locations
See our E-Library for state-wise rates
KEY DUE DATES

Labour Welfare Fund compliance calendar

Typical statutory timelines. Exact dates vary by state and notification, we maintain the calendar for each of your locations.

ActivityFrequencyDue date
Half-yearly LWFHalf-yearlyCommonly 15 July and 15 January
Annual LWFAnnualCommonly 15 or 31 January
Monthly LWF (e.g. Haryana)MonthlyAs per state
RISK OF NON-COMPLIANCE

What happens if Labour Welfare Fund is not managed well?

Interest and penalty

Late or missed contributions attract interest and penalties by state.

Missed states

LWF is easy to miss for new locations because it is not collected with PF or ESI.

Record gaps

Missing contribution records are flagged during inspections.

HOW IT WORKS

Our process

Step 1

Assess

We study your entities, locations, headcount and existing records to map every obligation that applies.

Step 2

Plan

A location-wise compliance calendar and responsibility matrix, agreed with your team.

Step 3

Execute

Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.

Step 4

Report

Regular status reports and an evidence file ready for auditors, inspectors and management.

FAQS

Labour Welfare Fund: frequently asked questions

Can't find your answer? Our specialists are a message away.

Pricing on request

Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.

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Is LWF applicable in every state?

No. LWF applies only in states that have enacted a Labour Welfare Fund Act, around 16 states and Union Territories.

When is LWF due?

It depends on the state, some collect annually (commonly in January), others half-yearly (commonly July and January).

Who contributes to LWF?

Both the employee and the employer contribute, in amounts fixed by each state.

Is LWF deducted from salary?

Yes, the employee share is deducted from salary and deposited along with the employer's share.

Does LWF apply to all employees?

Coverage varies by state, some cover employees up to a wage limit or exclude managerial staff. We apply the rule for each state.

Where can I see state-wise LWF rates?

Our E-Library has a state-wise Labour Welfare Fund reference.

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Need help with Labour Welfare Fund?

Tell us about your organisation and a Paalan professional will send you a clear, tailored proposal, usually within one working day.

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