Labour Welfare Fund
A Labour Welfare Fund (LWF) is a social security mechanism established by State Governments and maintain by Labour Welfare Board to promote the welfare and well-being of laborers, particularly those comes under low-income sectors.
Objective
The primary objective of a Labour Welfare Fund is to provide financial assistance and support to workers and their families, addressing their social, economic, and health-related needs.
Scope & Purposes
The benefits of these funds can vary from one state to another, but they generally serve the following purposes:
- Financial Assistance: LWFs often provide financial aid to laborers during times of need, such as illness, disability, maternity, or death. This assistance can include medical expenses, maternity benefits, funeral expenses, and disability pensions. subsidiary occupations for women and unemployed persons.
- Education and Skill Development: Many LWFs allocate funds for the education of workers’ children, including scholarships, grants, and vocational training programs, Reading room and libraries. This helps improve the long-term prospects of the labor force.
- Woman and infant welfare: LWF extended its assistance to woman and infant welfare as part of its broader mission to improve the well-being of laborers and their families. Nutritious food for labor’s children.
- Housing: In some regions, LWFs may facilitate housing schemes or offer subsidies to improve the living conditions of workers and their families.
- Healthcare: LWFs often support healthcare services by establishing or subsidizing medical facilities, clinics, and dispensaries. They may also provide health insurance coverage for workers and their dependents.
- Recreational Facilities: Some LWFs promote recreational and cultural activities by setting up sports clubs, cultural centers, libraries, Excursions, Tours and Holiday Homes. These initiatives contribute to the overall well-being and quality of life for laborers and their families.
- Legal Aid and Counseling: LWFs may offer legal assistance and counseling services to help workers navigate labor disputes, workplace harassment, and other employment-related issues.
- Retirement Benefits: In certain cases, LWFs also contribute to retirement and pension schemes, ensuring that workers have financial security in their old age.
- Emergency Relief: LWFs often step in to provide relief during natural disasters or other emergencies, helping affected workers and their families rebuild their lives.
Applicability of LWF
The applicability of a Labor Welfare Fund (LWF) varies from one State to another and is often determined by the specific labor laws and regulations of the region. The applicability of an LWF can also depend on factors such as the Nature and type of employment, the industry, and the income level of workers, Geographical location, Size of the Workforce. Here are some common aspects that influence the applicability of an LWF.
It’s important to be aware of LWF applicability. Compliance with LWF regulations is crucial to ensure that workers receive the benefits and support they are entitled to, and non-compliance can result in legal penalties.
| Sr No | Applicable States | Sr No | Non-Applicable States |
| 1 | Andhra Pradesh | 1 | Central |
| 2 | Chandigarh | 2 | Andaman and Nicobar Islands |
| 3 | Chhattisgarh | 3 | Arunachal Pradesh |
| 4 | Delhi | 4 | Assam |
| 5 | Goa | 5 | Bihar |
| 6 | Gujarat | 6 | Dadra and Nagar Haveli |
| 7 | Haryana | 7 | Daman and Diu |
| 8 | Karnataka | 8 | Himachal Pradesh |
| 9 | Kerala | 9 | Jammu and Kashmir |
| 10 | Madhya Pradesh | 10 | Jharkhand |
| 11 | Maharashtra | 11 | Ladakh |
| 12 | Odisha | 12 | Lakshadweep |
| 13 | Punjab | 13 | Manipur |
| 14 | Tamil Nadu | 14 | Meghalaya |
| 15 | Telangana | 15 | Mizoram |
| 16 | West Benga | 16 | Nagaland |
| 17 | Puducherry | ||
| 18 | Rajasthan | ||
| 19 | Sikkim | ||
| 20 | Tripura | ||
| 21 | Uttar Pradesh | ||
| 22 | Uttarakhand |
Frequency for Remittance
Every state has its own contribution and remittance frequency. Different states have different frequency for contribution like-Monthly, Half-Yearly and Annually.
Labour Welfare Fund Rate 2025 in India
| Sr. No. | State | Applicability | Employee Contribution (₹) | Employer Contribution (₹) | Total Contribution (₹) | Frequency & Date of Deduction | Last date for Contribution Submission | Form | Act | Rule | Exception |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Andhra Pradesh | Any Employer/Esteblishment employing 1 or more employees | 30 | 70 | 100 | Yearly | 2025-01-31 | Form F | Andhra Pradesh Labour Welfare Fund Act, 1987 | Tha Andhra Pradesh Labour Welfare Fund Rules, 1988 | Managerial capacity or who is employed as an apprentice or on part-time basis |
| 2 | Chandigarh | Any Employer/Establishment employing one or more employees/persons | 5 | 20 | 25 | Monthly | 15th October 15th April |
- | The Punjab Labour Welfare Fund Act,1965 | The Punjab Labour Welfare Fund Rules,1966 | All Covered |
| 3 | Chhattisgarh | Any Employer/Establishment employing one or more employees/persons | 15 | 45 | 60 | Half Yearly | 15th July 15th January |
FORM A | The Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982 | The Chhattisgarh Pradesh Shram Kalyan Nidhi Rules, 1984 | All Covered |
| 4 | Delhi | Any Employer/Establishment employing five or more employees/persons | 0.75 | 2.25 | 3 | Half Yearly | 15th July 15th January |
FORM A | The Bombay Labour Welfare Fund Act, 1953 | The Delhi Labour Welfare Fund Rules, 1997 | Managerial or supervisory capacity and drawing wages exceeding Rupees Two thousand Five Hundred only per month |
| 5 | Goa | Any Employer/Establishment employing one or more employees/persons | 60 | 180 | 240 | Half Yearly | 31st July 31st January |
FORM A | The Goa Labour Welfare Fund Act, 1986 | Goa Labour Welfare Fund, Rules 1990 | Managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred only per month |
| 6 | Gujarat | Any Employer/Establishment employing ten or more employees/persons | 6 | 12 | 18 | Half Yearly | 15th July 15th January |
FORM A-1 | The Gujarat Labour Welfare Fund Act, 1953 | The Labour Welfare Fund (Gujarat) Rules, 1962 | Managerial or supervisory capacity and drawing wages exceeding rupees three thousand and five hundred per month |
| 7 | Haryana | Any Employer/Establishment employing ten or more employees/persons | 34 | 68 | 102 | Monthly | Last Day Of The Month (Also being accepted Quarterly Half Yearly Yearly in certain cases) |
- | The Punjab Labour Welfare Fund Act,1965 | The Punjab Labour Welfare Fund Rules,1966 | All Covered |
| 8 | Karnataka | Any Employer/Establishment employing fifty or more employees/persons | 50 | 100 | 150 | Yearly | 2025-12-31 | FORM D | The Karnataka Labour Welfare Fund Act, 1965 | The Karnataka Labour Welfare Fund Rules, 1968 | All Covered |
| 9 | Kerala | Any Employer/Establishment employing one or more employees/persons | 50 | 50 | 100 | Monthly | 5th Of Every Month | FORM 6 Form - 5 |
The Kerala Shops And Commercial Establishments Workers Welfare Fund Act,2006 | The Kerala Shops And Commercial Establishments Workers Welfare Fund Scheme, 2007 | All Covered |
| 10 | Madhya Pradesh | Any Employer/Establishment employing one or more employees/persons | 10 | 30 | 40 | Half Yearly | 15th July 15th January |
FORM A | The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 | The Madhya Pradesh Shram Kalyan Nidhi Rules, 1984 | Managerial or supervisory capacity and drawing wages exceeding Rupees Ten Thousand only per month |
| 11 | Maharashtra | Any Employer/Establishment employing five or more employees/persons | 25 | 75 | 48 | Half Yearly | 15th July 15th January |
FORM A-1 | The Maharashtra Labour Welfare Fund Act, 1953 | The Maharashtra Labour Welfare Fund Rules, 1953 | Managerial or supervisory capacity and drawing wages upto Rupees Three Thousand only per month |
| 12 | Odisha | Any Employer/Establishment employing twenty or more employees/persons | 10 | 20 | 30 | Half Yearly | 15th July 15th January |
FORM F | The Odisha Labour Welfare Fund Act, 1996 | The Odisha Labour Welfare Fund Rules, 2015 | Managerial or supervisory capacity and who is employed as an apprentice or on part-time basis |
| 13 | Punjab | Any Employer/Establishment employing five or more employees/persons | 5 | 20 | 25 | Monthly | Last Day Of Month | - | The Punjab Labour Welfare Fund Act,1965 | The Punjab Labour Welfare Fund Rules 1966 | All Covered |
| 14 | Tamil Nadu | Any Employer/Establishment employing twenty or more employees/persons | 20 | 40 | 60 | Yearly | 31st January | FORM A | The Tamil Nadu Labour Welfare Fund Act, 1972 | The Tamil Nadu Labour Welfare Fund Rules, 1973 | Managerial or supervisory capacity and drawing wages exceeding rupees Fifteen thousand per month or who is employed as an apprentice or on part-time basis |
| 15 | Telangana | Any Employer/Establishment employing twenty or more employees/persons | 2 | 5 | 7 | Yearly | 31st January | FORM F | Telangana Labour Welfare Fund Act, 1987 | Telangana Labour Welfare Fund Rules, 1988 | Managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred per month |
| 16 | West Bengal | Any Employer/Establishment employing ten or more employees/persons | 3 | 30 | 18 | Half Yearly | 15th July 15th January |
FORM D | The West Bengal Labour Welfare Fund Act, 1974 | The West Bengal Labour Welfare Fund Rules, 1976 | Managerial or supervisory capacity and drawing wages exceeding rupees thousand six hundred per month |
Note: All amounts are in Indian Rupees (₹). Please verify with the respective state authorities for any updates or changes.
Conclusion
LWFs not only protect the rights of laborers but also contribute to the broader development of societies. By investing in the health, education, and economic stability of workers, LWFs foster social equity and economic progress. To remain effective, these funds must adapt to evolving labor landscapes, maintain transparency, and be accountable for fund usage, ensuring their continued role as vital pillars of labor welfare in the modern world.
