Understanding LWF Contribution: Should All Year Employees Be Included or Just December Payroll?

Dear All,

I have a doubt on LWF Contribution. Do only employees available on the payroll of December need to be considered for LWF contribution? Or should any employee available in the Calendar Year, even if not on the payroll of December, also be considered for Cumulative Contribution?

If the latter is correct, please provide the reference as well.

Thanks,
P. Thillai Natarajan

LWF payment in December 2016 will be useful for employees to avail the benefits in the CY 2017, i.e., from January 2017 to December 2017.

As each and every time, for all the benefits, the employee should get a certificate from the employer. Therefore, the employees who have left can't avail the benefits. So, logically, you should consider only the current employees in the month of December for LWF payment.

Labour welfare fund payments are made under the state laws, so you need to refer to the Labour Welfare Fund Act of your state and check what the requirements are.