Labour Welfare Fund

Labour welfare fund is a statutory contribution managed by individual state authorities. The state labour welfare board determines the amount and periodicity of the contribution. The contribution and periodicity of return/remittance are difference as per state rules. In some states the periodicity is annual (Andhra Pradesh, Telangana, Haryana, Karnataka, Tamil Nadu etc.) and in some states it is to be contributed during the month of June & December (Delhi, Gujarat, Madhya Pradesh, Maharashtra, Goa, Odisha, Chhattisgarh ,West Bengal etc.) and in some states it is to be contributed during the month of April & October (Punjab, Chandigarh etc.)

APPLICABILITY OF LWF Act,

In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories.

The Labour Welfare Fund Act is not applicable to all categories of employees working in the establishment. It depends upon the wages earned and designation of the employee. Also, one needs to check the total number of employees working before extending this Act to their establishment. The applicability of the Act based on the number of employees may differ depending upon state specific Act.

The below table represents the states in which the Act has been implemented and not implemented:

Applicable States

Not Applicable States

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