Labour Welfare Fund (LWF): Definition, Meaning & Guide for Indian Businesses

LWF is a state-administered fund providing welfare to workers. Contribution is monthly: ₹5-100 by employee and matching/double by employer. State-specific.

What is Labour Welfare Fund (LWF)?

Labour Welfare Fund is a state-level statute providing housing, education, medical and family welfare benefits to workers. Establishments with 5+ employees in covered states must contribute. Examples: Maharashtra ₹12/month employee + ₹36/month employer = ₹48/employee. Karnataka ₹20 employee + ₹40 employer. Tamil Nadu: ₹10 employee + ₹20 employer annually. Not all states — Delhi, UP, Bihar don't have LWF. Contribution deducted monthly, deposited quarterly/half-yearly to state Labour Welfare Board.