What is the Labour Welfare Fund (LWF) rate in India?
The Labour Welfare Fund is a statutory deduction in 16 states and UTs. Employee and employer both contribute to a state welfare board, ranging from Rs 3 to Rs 240 per cycle. Frequency is monthly, half-yearly, or yearly under each state's LWF Act.
LWF at a Glance
State-level law
Each state has its own LWF Act. No single central Act applies across India.
Two-party contribution
Employee share is deducted from salary. Employer adds matching or higher share.
Variable cycle
Monthly, half-yearly, or yearly depending on state. Maharashtra uses June and December.
Penalty on default
Most states levy interest plus damages on delayed payment. Prosecution possible for repeated default.
LWF Contribution Rates by State
All 16 Indian states and UTs that levy Labour Welfare Fund. Verified for 2026 cycles. Confirm the latest notification with your state Labour Welfare Board before filing.
| State / UT | Employee (Rs) | Employer (Rs) | Total (Rs) | Frequency | Cycle | Detail |
|---|---|---|---|---|---|---|
| Andhra Pradesh | 30 | 70 | 100 | Yearly | December | View |
| Chandigarh | 5 | 20 | 25 | Monthly | Every month | View |
| Chhattisgarh | 15 | 45 | 60 | Half-Yearly | June + December | View |
| Delhi | 0.75 | 2.25 | 3 | Half-Yearly | June + December | View |
| Goa | 60 | 180 | 240 | Half-Yearly | June + December | View |
| Gujarat | 6 | 12 | 18 | Half-Yearly | June + December | View |
| Haryana | 31 | 62 | 93 | Monthly | Every month | View |
| Karnataka | 20 | 40 | 60 | Yearly | December | View |
| Kerala | 50 | 50 | 100 | Monthly | Every month | View |
| Madhya Pradesh | 10 | 30 | 40 | Half-Yearly | June + December | View |
| Maharashtra | 25 | 75 | 100 | Half-Yearly | June + December | View |
| Odisha | 20 | 40 | 60 | Half-Yearly | June + December | View |
| Punjab | 5 | 20 | 25 | Monthly | Every month | View |
| Tamil Nadu | 20 | 40 | 60 | Yearly | December | View |
| Telangana | 2 | 5 | 7 | Yearly | December | View |
| West Bengal | 3 | 15 | 18 | Half-Yearly | June + December | View |
Rates verified as on September 2026. State Labour Welfare Boards revise contribution amounts periodically. Cross-check the latest gazette notification before filing.
States and UTs Without LWF
These states and union territories do not currently levy Labour Welfare Fund. Employers operating only in these regions need not deduct LWF from payroll.
LWF Deduction and Filing in 4 Steps
Identify state
Check whether the employee work state levies LWF. 16 states and UTs apply LWF deduction.
Apply rate
Deduct the employee share from salary based on the state Act. Add the employer share to payroll cost.
Pool and reconcile
Collect contributions across the cycle. Reconcile against headcount and exempted employees.
Deposit and file
Pay the total to the state Labour Welfare Board within the due date. File the return prescribed by the state.
What Happens If You Miss LWF Deposit
State Labour Welfare Boards treat LWF default seriously. Each state Act prescribes interest, damages, and prosecution. Repeat default can attract a fine and imprisonment under the relevant state LWF Act.
- Interest: 6 to 12 percent per annum on the delayed amount, state-dependent.
- Damages: Up to 25 percent of the arrears in serious default cases.
- Prosecution: Employer can be prosecuted under the state LWF Act.
- Audit risk: Labour inspectors check LWF challans during inspections.
Automate LWF Across 16 States
HRMS Software in India deducts state-wise LWF on payslip, applies the correct frequency, generates challans, and produces state-board ready returns. Multi-state payroll teams stay compliant without a spreadsheet.
Book Compliance DemoRelated Compliance Hubs
Other state-wise payroll compliance databases.
LWF Frequently Asked Questions
Run LWF Across 16 States Without Spreadsheets
HRMS Software in India deducts the right LWF amount on every payslip, generates state-wise challans, and tracks filing cycles. Stay audit-ready across multi-state payroll.