LWF Deduction Confusion: Should I Apply It to All Employees or Just Those with Lower Salaries?

Hello, dear. I am having trouble with the LWF deduction. For whom can I self-deduct the amount from the salary? Can I deduct from all the employees of my organization, or should I only deduct from the lower salary employees?

It depends on the definition of the employee as per your Welfare Fund Act. Since it is not a Central Act (other than the Building and Other Construction Workers Act), without knowing under which Act you have to deduct it, it is not possible to guide you properly. In general, the LWF is deducted from all employees other than those who have managerial powers functionally. By functionally, I mean not according to the designation that you have given to your employees, but based on what they do, whether they have any managerial rights, etc.

Dear Wasim, LWF is a succor in the form of money or necessities for those in need. LWF is a statutory contribution managed by every state authority. As you know, it helps laborers improve their working conditions, providing social security, and raises their standard of living. The LWF Act is not applicable to all categories of employees working in the establishment. It depends on the wages earned and designation of the employee. I would suggest you go through your State Rules because it may vary from state to state, and LWF is also not applicable in some states.