Hr Professional
Corporate Hr Head
Nirmal Kumar Sahu
Operations, Process, Projects
Hr Professional
Seema S
Assistant Manager - Hr
Junior Advocate
+4 Others

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Dear Friends,
Please give me some info about Labour Welfare Contribution .
I am aware the same is deducted twice yearly .i.e 30th June & 31st Dec and is not applicable to senior employees.
but am not aware about the amount to be deducted MONTHLY from the employees ..
Waiting for Ur feedbacks
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Dear Seema, Its deducted from the salary of June and December months salary respectively. As the amount per employee is very less, which cannt be divided on monthly basis. Sashmita
Dear Seema,
There is no Central Law which provides for deduction of Labour Welfare Fund. If some state has this kind of law, then you have to refer to it.
In absence of any law, it is not essential to deduct it. But if your Company wants to deduct it, it has to be in conformity with the Payment of Wages Act. Any deduction which is not allowed as per Payment of Wages Act would be its violation.So better take care and refer to it. Secondly, ant such deduction can take place only with the consent of the concerned employee. If Union exists, it has to be consented to by the Union.
Some Companies do have such kind of funds where nominal amounts are deducted from the salaries of employees (after taking Union into confidence) Deduction could be monthly or otherwise.Company also contributes similar amount and then fund is used for welfare of employees like helping an employee in case of serious sickness etc..
Thanks for the information Mr. KKT, as I was unaware about the minute details of it, as per our company we take the consent of the employee in writing.
What can be the implications if one organisation do not deposit the labour welfare fund??
Plz reply.
Dear Sashmita,
As I said, there is no Central Law calling for deduction or collection of Labour Welfare Fund/Contribution. If there is a State Law under which you are doing it,you have to refer to it. If you are doing it on your own, then it need not be deposited with anybody but Comapny has to keep it with itself under a seperate head. Company can not use this money for any other purpose.
Hi All,
LWF is applicable as per state law and varies state to state.
The labour office of each state have this notice, where the deductable amount of LWF for employer and employee is written.
It dont apply for some states like Uttar Pradesh.
It applies to Haryana, Delhi, Maharashtra, Karnataka and some other states.
After getting more accurate information, i will attach the complete list where is applies or not.
With Regards
Nirmal Kumar Sahu
Labour welfare contribution is depend on state to state. its not a central low. In haryana 1 rs deducted from employee salary in all position and employer contribute 2 rs per employee. And same is deposited once in three months and yearly return is send.
In our organization at Haryana all level of employees employee contribute Rs. 1/- every month and employer contribute Rs. 2/- every month
Consolidated cheque is being submitted on quarterly basis to the authority at Chandigarh
Thanks Nirmal, JK and Ranjit for valuable information. Let me also add a bit to it: I have worked in States of Rajasthan, Uttar Pradesh and Madhya Pradesh (my tenure in MP was very short, so I am not 100% sure about it) and in none of the states, it was deducted/applicable.
Dear All, Please find the attached LWF details for all states. Hope it will serve your purpose. Regds Nirmal Kumar Sahu

Attached Files
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File Type: xls lwf_statewise_369.xls (19.5 KB, 1220 views)

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