Verify before relying on this. Some figures or dates here are pending confirmation against the official gazette or circular. Check the sources below, or ask us.
The basics
Labour Welfare Fund (LWF) contributions are small, fixed amounts paid by employees and employers, and in some states the government, into a state welfare board. The boards run schemes such as scholarships, medical aid, holiday homes and sewing and training centres.
LWF is a state levy. The Labour Codes do not affect it. It operates in about 16 States/UTs, each with its own coverage threshold, frequency and "register date". The register date is the date on which your headcount decides the liability.
1. Karnataka: coverage cut from 50 to 10 persons
The Karnataka Labour Welfare Fund (Amendment) Act 2025 took effect on 7 January 2026. It changed the definition of "establishment" so that the Act applies to establishments employing 10 or more persons. The earlier threshold was 50. Contract workers count.
- Rates are unchanged: ₹50 from the employee and ₹100 from the employer, per employee per year. This rate dates from the 2024 amendment.
- Deduction: from December wages, for every employee on the register on 31 December.
- Due: payment with Form D by 15 January of the following year, online through the Board's e-payment system.
- First payment for newly covered employers: calendar year 2026, due by 15 January 2027.
- Unpaid accumulations and fines (unclaimed wages) must also be remitted to the Board.
Example. A Bengaluru start-up has 14 employees on 31 December 2026. It deducts 14 × ₹50 = ₹700 from staff and adds 14 × ₹100 = ₹1,400. It remits ₹2,100 with Form D by 15 January 2027.
2. Haryana: employee share capped at ₹35 from 1 January 2026
Haryana applies the Punjab LWF Act 1965 as extended to it. The employee pays 0.2% of monthly wages, capped at an indexed amount, and the employer pays twice the employee share.
| From | Employee cap | Employer maximum |
|---|---|---|
| 2024 | ₹31 | ₹62 |
| 1 Jan 2025 (notified 7 Mar 2025) | ₹34 | ₹68 |
| 1 Jan 2026 (Notification HLWB/REV/2026/3436, dated 8 May 2026) | ₹35 | ₹70 |
The cap is revised each 1 January with the CPI. Because the 2026 notification came in May, arrears for January–April 2026 may be due for employees whose 0.2% exceeds ₹34. Those are wages above ₹17,000, since 0.2% of ₹17,500 is ₹35.
Example. Wages of ₹30,000 give 0.2% = ₹60, capped at ₹35. The employer pays ₹70, so the monthly remittance is ₹105. Contributions are monthly. The due date is commonly the 15th of the following month. Confirm it on the Haryana Labour portal.
3. Maharashtra: ₹25 / ₹75 per half-year since June 2024
Maharashtra Act No. 25 of 2024 (18 March 2024) raised the contributions from the June 2024 period:
- Employee: ₹12 to ₹25.
- Employer: ₹36 to ₹75.
Both are payable half-yearly. The old wage-linked ₹6/₹18 slab no longer applies.
- Who pays: everyone on the register on 30 June and 31 December, except managerial or supervisory staff earning above ₹3,500 a month.
- Deduction: from June and December wages.
- Due: by 15 July and 15 January, online on the MLWB portal.
Due-month table for major states
| State | Employee / employer | Frequency | Deduct in | Due by | Coverage notes |
|---|---|---|---|---|---|
| Karnataka | ₹50 / ₹100 | Annual | December | 15 Jan | 10+ persons from 7 Jan 2026 |
| Maharashtra | ₹25 / ₹75 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan | Excludes supervisory staff above ₹3,500 |
| Haryana | 0.2% (cap ₹35) / 2× | Monthly | Every month | 15th of next month (verify) | CPI-indexed each 1 Jan |
| Delhi | ₹0.75 / ₹2.25 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan (Form A) | 5+ persons. Excludes supervisory staff above ₹2,500 |
| West Bengal | ₹3 / ₹30 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan | Employer ₹30 from 1 Jan 2024 |
| Tamil Nadu | ₹20 / ₹40 | Annual | December | 31 Jan | 5+ employees |
| Telangana | ₹2 / ₹5 | Annual | December | 31 Jan | |
| Andhra Pradesh | ₹30 / ₹70 | Annual | December | 31 Jan | |
| Gujarat | ₹6 / ₹12 | Half-yearly | Jun, Dec | 15 Jul / 15 Jan (some say 31st) | 10+ employees |
| Madhya Pradesh | ₹10 / ₹30 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan | Excludes supervisory staff above ₹10,000 |
| Chhattisgarh | ₹15 / ₹45 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan | Excludes supervisory staff above ₹10,000 |
| Punjab / Chandigarh | ₹5 / ₹20 | Monthly deduction | Every month | 15 Apr, 15 Oct (half-yearly deposit) | 20+ employees |
| Goa | ₹60 / ₹180 | Half-yearly | Jun, Dec | 31 Jul, 31 Jan | 2015 amendment rates. The Board website shows stale figures |
| Kerala (shops fund) | ₹50 / ₹50 | Monthly | Every month | 30th | Low confidence |
| Odisha | ₹20 / ₹40 | Half-yearly | Jun, Dec | 15 Jul, 15 Jan | 20+ persons. Low confidence |
No operative LWF applies to private establishments in Uttar Pradesh, Rajasthan, Bihar, Jharkhand, Assam, Himachal Pradesh, Uttarakhand, Puducherry, J&K or most north-eastern states.
What employers should do
- To do: Karnataka: if you had 10–49 persons in 2026, register with the Karnataka Labour Welfare Board. Deduct ₹50 from December 2026 wages and remit ₹150 per head with Form D by 15 Jan 2027.
- To do: Haryana: move the cap to ₹35 / ₹70. Compute and remit January–April 2026 arrears if your payroll used ₹34.
- To do: Maharashtra: confirm that the June 2026 half-year was paid at ₹25 / ₹75 by 15 July. Schedule the December deduction.
- To do: Build LWF by work-location state, using each state's register date (30 June / 31 December).
- To do: Keep challans and returns (Form D in Karnataka, Form A in Delhi) with the payroll records for inspection.
Effective dates at a glance
| Date | Change |
|---|---|
| 1 Jan 2024 | West Bengal employer share ₹30 |
| June 2024 | Maharashtra ₹25 / ₹75 |
| 1 Jan 2025 | Haryana cap ₹34 |
| 1 Jan 2026 | Haryana cap ₹35 (notified 8 May 2026) |
| 7 Jan 2026 | Karnataka coverage at 10+ persons |
| 15 Jan 2027 | First Karnataka payment for newly covered employers |
Status note (verify: true). The Karnataka, Maharashtra, Haryana, Delhi and West Bengal figures are well sourced. Kerala (several welfare funds, effective date of the ₹50 rate unknown) and Odisha (per-half-year versus annual employer amount) are low confidence. The Gujarat and Haryana due dates differ between publishers. Confirm these with the state boards before you rely on them.
General information, not legal advice. Last reviewed 27 Sep 2026.