Labour Welfare Fund (LWF)
The Labour Welfare Fund is a small welfare contribution collected by some states — a few rupees from the employee, a bit more from the employer, deducted only in certain months.
Labour Welfare Fund (LWF) is set by each state — there is no central version. Only some states have it, the amounts are tiny fixed figures (not a percentage), and it's deducted only in specific months. Webelio knows which states charge it, how much, and when.
Does this apply to my business?
- Location decides it: LWF depends on the state where the employee works, the same as Professional Tax.
- States with LWF include: Maharashtra, Karnataka, Tamil Nadu, Gujarat, Andhra Pradesh, Telangana, Kerala, West Bengal, Madhya Pradesh, Chhattisgarh, Delhi, Goa, Haryana and Punjab.
- States without LWF include: Uttar Pradesh, Rajasthan, Bihar, Jharkhand, Uttarakhand and several others.
- Some staff are exempt: managerial or supervisory employees above a state wage threshold are often excluded. You can turn LWF off for a specific person with their per-employee flag.
Turn on LWF under compliance setup if any branch is in a state that levies it.
What Webelio does automatically
- Finds the employee's work-location state and looks up that state's LWF amount.
- Deducts the small employee contribution only in the state's deduction month(s) — nothing in other months.
- Records the employer contribution (usually 2–3 times the employee's) as an employer cost in the same month(s).
- Leaves LWF untouched by loss-of-pay — it's a flat amount, so absent days don't reduce it.
- Deducts nothing for states without LWF.
- Builds an LWF summary per state for filing.
What you still must do
- Register for LWF in each applicable state and enter the registration number.
- Download the LWF summary from Webelio for the deduction month.
- Pay the challan / file the return on the state portal by its due date.
How much and when
Amounts are small flat figures and the frequency differs by state. A few examples:
| State | Employee | Employer | Deducted in |
|---|---|---|---|
| Maharashtra | ₹25 | ₹75 | June & December |
| Karnataka | ₹20 | ₹40 | December (once a year) |
| Gujarat | ₹6 | ₹12 | June & December |
| Haryana | ₹31 | ₹62 | Every month |
| West Bengal | ₹3 | ₹15 | June & December |
These are illustrative — states revise the figures by notification, and Webelio keeps the current values. Broadly, most states deduct half-yearly (June and December), a few deduct once a year (usually December), and a small number (like Haryana) deduct every month.
Because LWF only shows up in June and December for most states, don't be surprised to see it appear on payslips in those months and not others. That's expected.
What's next
- Professional Tax — the other small state-level deduction, applied by work location.
- Statutory reports & filing files — download the LWF summary.
- Compliance overview — the full applicability table and calendar.