How Can I Resolve the Long-Overdue LWF Contributions for My Company?

Hello everybody, I'm in an MNC as an HR Executive and recently joined. Our company has not submitted the LWF amount since April 2008. Now, I would like to submit that amount. Please help me with what I should do and how I can make this contribution. This is a critical issue for me as I am handling this department independently.

Thank you all in advance for your assistance.

Regards,
Karamvir
[Phone Number Removed For Privacy Reasons]

Dear Karamvir, we are to deposit this amount of contribution, both the shares of the employee & employer, with the Welfare Commissioner, Haryana through a cheque or draft payable at Chandigarh before 31st December every year @ Rs. 5 pm of the employee & @ Rs. 10/- pm on behalf of the employer. We have a grace period of one month, meaning thereby that we can deposit this amount till 31st January. But if we do not utilize this grace period, then we are bound to deposit interest @ 12 pa on this amount with the Welfare Commissioner, Haryana until this amount is actually deposited with the Board wef from January 1st itself. This rate of contribution is effective from April 07. In your case, send the contribution in two sets, i.e. from April 2008 to November 2008 & from December 2008 to November 2009.

Opinions/comments submitted as requested.

With Regards,
R.N.Khola

Dear Karamvir, Mr. Ashok has provided the format in his attachment on sheet No. 2. This is a detailed information sheet provided by the Board for sending contributions. Form 'B' as provided on sheet No. 1 is a format prepared by the bookseller for sending contributions. According to the Punjab Labour Welfare Fund Rules, 1966, we are required to send an extract of Form 'B' pertaining to the previous year to the Welfare Commissioner, Haryana, by 31st January every year as per Rule 22(2) of these Rules.

With Regards,

R.N.Khola

Dear Karamvir,

I suggest that you make a statement accordingly and submit all amounts till December 2009. You must send this amount through registered post to Chandigarh.

Thanks & regards,

Madan Mohan
Manager (Personnel & Admin)
Gurgaon

Dear Madan Mohan,

I am going to make a statement of HLWF till Dec. 2009. What is the interest rate that I have to calculate, and the DD should be in favor of...

Awaiting your response.

Karamvir

Please send the amount with 18% per annum interest in favor of THE WELFARE COMMISSIONER HARYANA by DD payable at Chandigarh for the Haryana Welfare Fund. Send by registered post with the above-attached details.

Address:

The Welfare Commissioner Haryana
Room No. 51, 2nd Floor, 30 Bays Building
Sector 17, Chandigarh.

Best Regards

Dear Ashok, with due respect to your post, I would like to again submit that the rate of interest on delayed payment on contribution amount is 12% per annum and not 18%. Section 9A, along with other sub-sections, may be read as follows, which I have taken from the Punjab Labour Welfare Fund Act, 1965, as applicable to the State of Haryana for ready reference.

Contribution to Fund by Employers and Employees

(1) Every employee shall contribute five rupees per month to the Fund, and every employer shall, in respect of each such employee, contribute ten rupees per month to the Fund.

(2) Every employer shall pay to the Fund both his contribution and the contribution of the employee before the 31st December of every year by crossed cheque or demand draft in favour of the Welfare Commissioner.

(3) The employer shall be entitled to recover from the employee the employee's contribution by deduction from his wages and not otherwise.

(4) Any employer who fails to pay the contribution amount within a period of one month from the date specified under sub-section (2) shall be liable to pay interest at the rate of twelve percent per annum from the said date until such time the amount is actually deposited with the Welfare Commissioner.

Explanation – For the purpose of Sub-Section (1), "employee" means an employee on the register of an establishment on the last working day of the month.

[IMG]file:///C:/DOCUME%7E1/ADMINI%7E1/LOCALS%7E1/Temp/msohtml1/01/clip_image001.gif[/IMG]

1. Inserted by Haryana Act No. 1 of 2002 dated 29th Jan. 2002.
2. Substituted for the words "One rupee" and "two rupees" by Haryana Act No. 7 of 2007 dated 4th April, 2007.

With Regards,
R.N. Khola

Dear Sir, I appreciate your actual and justified response. I am sorry for providing incorrect information. However, last time I faced a problem as per Karmbir, so the labor inspector provided information about 18%. I have also confirmed with many of my seniors. Maybe it was amended to 18% or not, I cannot say with 100% confidence. Yet, I am highly impressed by your suggestion. Please continue to help us.

Thank you.

I have attached the necessary documents to submit the return. First of all, immediately send the quarterly return for this period - JAN 2010 to MARCH 2010. You need to submit a cheque drawn in favor of the WELFARE COMMISSIONER along with the attached documents. Also, take a copy of all documents, including the cheque and the registry slip, with you as you will not receive any acknowledgment from them.

Regards

Inquiry on Punjab Labour Welfare Fund Act, 1965

Could any of the members inform us which provisions of the Punjab Labour Welfare Fund Act, 1965, as applicable to the State of Haryana, direct us to send quarterly returns/contributions to the Welfare Commissioner, Haryana? What is the time limit for sending this return if necessary?

With Regards,
R.N.Khola

Respected All,

I have recently heard, but I am not sure, that the Haryana Labour Welfare Contribution has been increased. I am unsure if this information is accurate. If it has been revised, could you please provide me with a notification regarding the same?

Thanks in Advance

I have placed a request online for my company's registration during May 2011. However, the registration was completed, and the certificate is now available for download as of today.

Contribution Payment Inquiry

I would like to humbly request Mr. Khola to advise me on the amount to be paid for employees and from when it should be paid. I understand that double the amount of the employee's contribution should be paid to LWF.

Contribution for Managerial Roles

Additionally, we have around 20 employees, all of whom are in managerial positions. Do you think the contribution is necessary for employees in managerial roles?

My office is located in Cybercity, Gurgaon.

Thank you in advance for your valuable information.

Regards,
Rajendran Manager Administration IMG

If your company is covered under the Punjab Shops Act and if you are employing 10 or more employees, then you are required to send the LWF contribution yearly, both of the employee and employer, to the Welfare Commissioner in Haryana. The rate of contribution depends upon the period for which you are liable to pay. After April 2007, managers are also covered under the definition of an employee under the Punjab LWF Act, 1965, and therefore, their contribution should also be deducted from their salary starting from April 2007 onwards.

Regards,
R N KHOLA

Dear Sir,

Please confirm if LWF is applicable to managerial level employees or employees whose gross salary is more than 10,000/- in Chennai. As per the clause mentioned, "All employees except those working in managerial or supervisory capacity and drawing wages exceeding Rs.3,500/- only per month."

Please confirm if this salary refers to Gross or Minimum Wage. If all employees are drawing a salary higher than this limit (3500), how should the return be submitted? There should be no liability, I hope.

Dear Sir,

Address of Haryana Labour Welfare Office:
Welfare Commissioner, Haryana,
Bays No. 29-30, Pocket-2, Near Yojna Bhawan,
Opp. Parade Ground, Sector-4,
PANCHKULA

For rates and management level for whom LWF is to be remitted, see the note in the attachments, which was recently received in a communication from the Dept.

Thanks,
V K Gupta

Kindly guide me for the Chennai location. Is it Rs.10/- per employee and Rs.20/- for the employer every month, or is it a one-time deduction (meaning a total of Rs.30/- for both employee and employer per year)? Also, please provide me with the updated Form A.

Hello,

Find the attached Form A. For details, check out Simpliance - Labour Law Compliance, a free online labor law library. Here, you can download forms, acts, rules, etc., for free.

Thanks

Please confirm if there has been any change in the LWF of Haryana, or is it still Rs.10 for employees and Rs.20 for employers. If there have been any changes, please correct me.