Labour Welfare Fund (Tamilnadu) - Can we deduct it from the Employee on Jan-2024 salary? Is there any issue arising due to this?

If LWF not deducted from Employee on Dec-2023 Salary, Can we deduct it from the Employee on Jan-2024 salary? Is there any issue arising due to this?

Not deducting an amount from the salary is not a crime but not paying the amount whether or not deducted is an offence. Therefore, if the amount is payable monthly (I understand that the welfare fund is payable in six months or annually) and you have not made payment of contribution in respect of any employee, then that is an omission. But you can pay it along with the next month's contribution. It may attract some penal changes and interest.

Dear Lakshminarayan,

In general, the deduction of LWF (Labour Welfare Fund) from an employee's salary is subject to labour laws and regulations in the relevant jurisdiction. It's important to ensure that any deductions comply with applicable laws and employment contracts.

Deducting LWF from an employee's salary in a subsequent month to make up for a missed deduction in a previous month may raise legal and ethical considerations. It's advisable to review the specific labor laws and regulations in your location, as well as any applicable employment contracts or agreements, to determine the permissible and potential consequences of such a deduction.

Thanks

Dear Lakshminarayanan U,

You have until 15th January 2024 to pay both the employee and employer contributions to the Labour Welfare Board. There will be no legal issues if eligible employees' contributions are deducted from their January 2024 salary.
Because the payment is done before the due date, you will save penal interest/damage.

Regards,
Suresh

As per the Act, the last date for payment of Labour Welfare Fund to the Government is 31st Jan. The Management is expected to remit the amount (both employees' and employer's) with the Authority. The contribution from eligible employees will normally be deducted from their salary in the month of December every year. However, for some reason, if the contribution towards LWF is not deducted in December, then it can be deducted from Jan salary. But Company has to pay in advance within the due date.