Seeking Details on Labour Welfare Fund Deductions for Various Indian States: Can You Help?

Labour Welfare Fund Deductions Inquiry

Concerned HR/Labour fraternity friends of the following states, I want to know the Labour welfare fund deductions of the following states:

1. Maharashtra
2. Delhi
3. Gujarat
4. Andhra Pradesh
5. Tamil Nadu
6. Kerala
7. Madhya Pradesh

I would be thankful if you could furnish the information in the following statement (attached also) and send it to the following email: [Email Removed For Privacy Reasons]

Labour Welfare Fund Deductions:

1. Name of the State
2. Applicability of the act
- For what number of employees
3. Period when to be deducted
4. Amount per employee to be deducted (contribution)
5. Amount of contribution to be paid by Employer per employee
6. Contributions when to submit to the board
7. Prescribed Form under which contributions to be submitted
8. Address where contributions after deductions to be submitted
9. Any other relevant information to furnish
10. Remarks:

Send filled-in information to email: [Email Removed For Privacy Reasons]

Thanks,
Regards,
Ram K. Navaratna
Bangalore

Name of the State - Maharashtra

Applicability of the Act

- Applicable to a factory, tramway, or other motor transport, or an establishment as defined under the Bombay Shops and Establishments Act 1948, employing five or more employees. "Employee" means any person employed for hire or reward to do skilled, unskilled, manual, technical, clerical, or supervisory work. However, employees in managerial capacities and supervisors drawing wages more than ₹3,500 per month are excluded. An apprentice appointed under the Apprentices Act 1961 is also excluded.

Period When to be Deducted

- Contributions to be deducted monthly.

Amount per Employee to be Deducted (Contribution)

| Sr. No. | Wage Limits | Employee's Contribution | Employer's Contribution | Total |
|---------|-------------|-------------------------|-------------------------|-------|
| 1 | Wages up to and inclusive of ₹3,000 per month | ₹6.00 | ₹18.00 | ₹24.00 |
| 2 | Wages exceeding ₹3,000 per month | ₹12.00 | ₹36.00 | ₹48.00 |

Note: The employer's contribution shall be three times the employee's contribution.

Amount of Contribution to be Paid by Employer per Employee

- Replied above.

Contributions When to Submit to the Board

- Once in six months before 15th July and 15th January.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd.

For Andhra Pradesh, every year before 31st January, one must pay the Labour Welfare Fund for the period from 01 Jan to 31 Dec for the number of workmen engaged by the employer. The employee's share is Rs. 2/- and the employer's share is Rs. 5/- (Total Rs. 7/-) per head per annum.

You must submit Form F as per the AP Labour Welfare Fund Act along with a demand draft for the amount and the list of workmen for whom the amount is paid.

Subject: Labour Welfare Fund Act

The Labour Welfare Fund Act is a State Act, and therefore the wage limits and quantum of deductions may differ from state to state. Since you appear to be located in Raipur, please verify the Labour Fund Act of Chhattisgarh state.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd.
Mumbai

Dear Sir, it is deducted from the fixed gross salary or the monthly gross salary. A worker with a fixed gross salary of Rs 10,000, but in the month of December, his gross salary was Rs 3,000 due to absenteeism.

What is the maximum salary limit for deduction? Should I deduct Rs 6 or Rs 12 from his salary?

Please shed light on the above query.

Regards,
Sacheein

You have to deduct monthly wages at Rs. 6 only if the monthly wages do not exceed Rs. 3000/- and Rs. 12 if the monthly salary exceeds Rs. 3500/- p.m. under the Bombay Labour Welfare Fund Act.

Regards,
B. Saikumar
HR & Labour Law Consultant
Chipinbiz Consultancy Pvt. Ltd
Mumbai
Tel: [Phone Number Removed For Privacy Reasons]

Clarification on Labor Welfare Fund Remittance

Kindly clarify if the welfare fund has to be remitted separately in each state. Our company is located in Bangalore, but we have staff deployed in different states. How is the labor welfare fund to be dealt with? Is it that the welfare fund of employees is to be deducted from them? If yes, should it be on a monthly or half-yearly basis?

Thanks in anticipation.

Regards,
Shany Jalal
[Phone Number Removed For Privacy Reasons]

Yes, you are required to remit the LWF in each state separately and not in Bangalore. Please check the applicability of the act in the respective state prior to deducting/remitting the LWF.

Labour Welfare Fund contribution in Andhra Pradesh consists of an Employee contribution of Rs. 30 and an Employer contribution of Rs. 70. To understand the complete process of how to pay the Labour Welfare Fund in Andhra Pradesh in 2017, you can visit [How To Pay Labour Welfare Fund Andhra Pradesh 2017](http://www.hrcabin.com/pay-labour-welfare-fund-andhra-pradesh/).