Understanding Labor Welfare Fund Deductions: Who's Included and Where to Remit?

Hi, I am Vishakh and would seek your assistance in clarifying the deduction and remittance of the labor welfare fund.

1) Is it mandatory to deduct LWF from all categories of employees (Managers, Executives, etc.)?

2) In the case of a company with different locations (states), can the LWF deduction and remittance be done at the location of the head office, or should it be deducted and remitted at the respective location?

Thank you.

I would like to quote the definition of 'employee' under the LWF Act.

Definition of "Employee" Under the LWF Act

2 (b) "Employee" means:
- (i) any person who is employed for hire or reward to do any work, skilled or unskilled, manual, supervisory, clerical, or technical in an establishment for a period of 30 days during the period of the preceding 12 months, whether the terms of employment are express or implied, but does not include any person:
- (a) who is employed mainly in a managerial capacity; or
- (b) who, being employed in a supervisory capacity [draws wages exceeding three thousand and five hundred rupees per mensem] or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature; or
- (c) who is employed as an apprentice or on a part-time basis.

Remittance of LWF

Regarding the remittance part, it can be remitted centrally in LWB at Chennai for branches located all over Tamil Nadu.

I hope this is clear now. If you require any support, please write to us directly at the given email address.

Regards

1) It is not mandatory to deduct LWF from all categories of employees (Managers, Executives, etc.). It is only mandatory for those who are covered under the definition of Worker (Labour).

2) It is only remitted at the respective locations (states).

With Regards,
Mahendra Patel, Gujarat