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All-in-one HR platform · v2.0
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A state-administered welfare fund operated in some states, with employer and employee shares and a periodicity set by the state. Half-yearly and annual cycles are both common, so deadlines differ across a multi-state employer.
Labour Welfare Fund is one of the smallest deductions on a payslip, but it causes outsized trouble because each state that has the fund sets its own amounts, periodicity and due dates. Some states collect it half-yearly, some annually, and several states have no LWF at all.
In practice, payroll keeps a state-wise calendar: the deduction is applied only in the specified month, alongside the employer's matching share, and remitted to the state board by its deadline. An employee who moves from one state's office to another mid-year needs the work location updated before the deduction month, or the contribution goes to the wrong state.
The usual mistake is deducting LWF every month out of habit, or deducting it for a state where the company has no registration. Check the current rules of each state you operate in, because amounts are revised from time to time.
The Labour Welfare Fund, a state-administered welfare fund operated in some states.
Both employer and employee have shares.
No, only in some states.
The periodicity is set by the state; half-yearly and annual cycles are both common.
Deadlines and cycles differ by state.
The state that administers the fund.
No. It is state-administered.
No. Both are state-level, but LWF is a welfare fund while professional tax is a tax on employment.
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