Labour Welfare Fund (LWF)

What is Labour Welfare Fund (LWF) :

Labour Welfare Fund is a statutory contribution that is managed by State Authorities. The contribution is carried out for the benefit of workers and labourers in the unorganised sector.

Labour Welfare Fund (LWF) is an initiative by the government of India to help and improve the living conditions of the unorganized sector.

Out of 36 states including Union Territories, Labour Welfare Fund Act is applicable in 16 of them. Based on this act. Based on this act, Employee and Employer have to contribute a certain amount under this. This amount is varied from one state to another state.

The amount to be contributed on or before the due date. If it is not contributed before the due date then penalties are applicable. The last date of contribution submission and penalties differs from one state to another state.

Applicable States :

Labour Welfare Fund is applicable in 16 States of India out of 36 States including Union Territories.

Applicable States
Andhra PradeshChandigarhChhattisgarhDelhi
GoaGujaratHaryanaKarnataka
KeralaMadhya PradeshMaharashtraOdisha
PunjabTamil NaduTelanganaWest Bengal

Not Applicable States :

Labour Welfare Fund is not applicable in 22 States of India out of 36 States including Union Territories.

Not Applicable States
CentralAndaman and Nicobar IslandsArunachal PradeshAssam
BiharDadra and Nagar HaveliDaman and DiuHimachal Pradesh
Jammu and KashmirJharkhandLadakhLakshadweep
ManipurMeghalayaMizoramNagaland
PuducherryRajasthanSikkimTripura
Uttar PradeshUttarakhand  

Labour Welfare Fund (LWF) Contribution and Submission Process :

  • The contribution of Labour Welfare Fund (LWF) may be submitted Annually, Half Yearly or Monthly.
  • Contribution submission frequency may differ from one state to another state depending upon the state specific act.
  •  If the frequency is half yearly the period of deduction shall be divided into two consecutive periods as per the date mentioned in the state specific Act. 
  • The employer needs to make the deduction from the salary of the employee and submit the same to the Labour Welfare Fund board in the prescribed form before the due date.

Benefits of Labour Welfare Fund (LWF) :

It is up to the states how they decide to use the fund. There are some common benefits that are given by the states.

  • For the education of the children of workers.
  • Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families.
  • Transport facilities to the workers for commuting to work.
  • Recreational facilities in form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment.
  • Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
  • Excursions, tours and holiday homes.
  • Home industries and subsidiary occupations for women and unemployed persons.
  • Reading rooms and libraries.
  • Vocational training.
  • Nutritious food to children of employees.

Other Post :

Leave a Comment