Labour Welfare Fund Deductions in Haryana: How to Handle Employees Working Out of State?

Dear Member, please provide the answers to the following questions in the case of a company that has a registered office in the state of Haryana:

LWF Deduction for Employees in Haryana

1. The company is deducting and depositing LWF only in respect of employees who are working in Haryana and not for the employees who are working at client sites in other states, even though the salary of all employees is processed from the Haryana office.

LWF Deduction for Partial Month Work

2. Is it necessary to deduct the LWF if the employee worked only part of the month, say 5-6 days?

Thank you.

In my opinion, we are to deduct the Labour Welfare Fund Contribution for employees working at clients' sites if they are shown on the rolls of your registered office. If they are transferred to any of your branch offices, then, in that case, you are not to deduct LWFC at your registered office.

Section 9A of the Punjab Labour Welfare Fund Act, 1965

According to section 9A of the Punjab Labour Welfare Fund Act, 1965, as applicable to the State of Haryana, we are to deduct this contribution if the employee is on the rolls of the establishment on the last day of the month.

Regards,
R.N. KHOLA
Welcome Skylark Associates

As already clarified, we are to deduct LWFC only if the employee is on the rolls of the establishment on the last day of the month and is drawing wages/salary.

Regards,
R N KHOLA