Labour Welfare Fund (LWF) in Tamil Nadu 2026

Employee and employer LWF contribution, filing frequency, collection cycle, and the governing Act for payroll teams in Tamil Nadu.

Rs.20

Employee share

Rs.40

Employer share

Rs.60

Total / cycle

Yearly

Frequency

Source: Tamil Nadu Labour Welfare Fund Act, 1972. Verify the current rate with the Tamil Nadu Labour Welfare Board before filing.

Key Takeaway Last reviewed: June 2026

What is the LWF contribution in Tamil Nadu?

In Tamil Nadu, LWF is Rs.20 (employee) + Rs.40 (employer) = Rs.60 per employee, collected yearly (December) under the Tamil Nadu Labour Welfare Fund Act, 1972.

Quick Reference

LWF Rates in Tamil Nadu

Contribution, frequency, cycle, and governing Act at a glance.

Item	Value	Note
Employee contribution	Rs.20	Deducted from salary, shown on payslip
Employer contribution	Rs.40	Added by employer, not on payslip
Total per employee	Rs.60	Per contribution cycle
Frequency	Yearly	How often LWF is collected
Collection cycle	December	When the contribution is due
Governing Act	Tamil Nadu Labour Welfare Fund Act, 1972	State statute that levies LWF
Administered by	Tamil Nadu Labour Welfare Board	Receives and spends the fund

Source: Tamil Nadu Labour Welfare Fund Act, 1972. Verified as on June 2026. State boards revise rates periodically; confirm with the Tamil Nadu Labour Welfare Board before filing.

How It Works

LWF Deduction and Filing in Tamil Nadu

Deduct employee share

Deduct Rs.20 from the employee in the yearly cycle.

Add employer share

Add Rs.40 as employer cost to reach Rs.60 per employee.

Reconcile headcount

Exclude exempt managerial staff and apprentices before totalling.

Deposit to board

Pay the total to the Tamil Nadu Labour Welfare Board and file the prescribed return.

factoHR India

Automate Tamil Nadu LWF

factoHR India deducts Tamil Nadu LWF on the payslip, applies the correct cycle, generates challans, and produces board-ready returns.

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LWF in Other States

All states

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FAQ

Tamil Nadu LWF FAQs

What is the LWF contribution in Tamil Nadu for 2026?

Tamil Nadu charges Rs.20 from the employee and Rs.40 from the employer, a total of Rs.60 per employee. It is collected yearly (December) under the Tamil Nadu Labour Welfare Fund Act, 1972.

How often is LWF paid in Tamil Nadu?

LWF in Tamil Nadu is paid yearly. Employers deduct the employee share, add the employer share, and deposit the total to the Tamil Nadu Labour Welfare Board in the December cycle. Verify the exact due date with the board.

Who is exempt from LWF in Tamil Nadu?

Employees in managerial or supervisory roles above the state wage ceiling are usually exempt, along with apprentices under the Apprentices Act, 1961. Check the Tamil Nadu Labour Welfare Fund Act, 1972 for the applicable ceiling and exemption list.

Is LWF shown on the Tamil Nadu payslip?

Yes. The employee LWF share of Rs.20 appears as a separate deduction on the payslip. The employer share of Rs.40 is not on the payslip but is recorded in payroll registers and the LWF return.

How does factoHR India handle Tamil Nadu LWF?

factoHR India deducts the Tamil Nadu LWF share on the payslip, applies the yearly cycle, generates the LWF challan, and produces board-ready returns. Rates update when the Tamil Nadu Labour Welfare Board revises them.

If you employ staff in Tamil Nadu, the same workforce is also covered by minimum wage rates in Tamil Nadu, Professional Tax in Tamil Nadu, working-hour and overtime rules in Tamil Nadu, and the public holiday calendar for Tamil Nadu. Keep every Tamil Nadu statutory obligation aligned across your payroll.