Quick answer: The labour welfare fund (LWF) is a small state levy that you and your employees pay into a state welfare board. The board funds welfare schemes for workers. It runs under each state’s own Labour Welfare Fund Act. In Maharashtra, it is deducted from staff on the rolls on 30 June and 31 December.
- About 16 states and union territories levy LWF, including Maharashtra, Karnataka, Tamil Nadu, Gujarat, Delhi and Haryana.
- Maharashtra’s employer share is three times the employee share.
- Karnataka collects once a year, with employer, employee and state all contributing.
- No central law governs LWF, and the four Labour Codes did not replace it.
How does the LWF contribution work in each state?
Each state picks who pays, how much and how often. No two match. So the lwf contribution for one employee can be half-yearly in Pune and annual in Bengaluru.
| State | How often | Who pays |
|---|---|---|
| Maharashtra | Twice a year (30 June and 31 December registers) | Employee, plus 3 times that from the employer |
| Karnataka | Once a year (31 December) | Employee, employer at twice that, and the state |
| Haryana | Monthly, as a share of wages | Employee, plus twice that from the employer |
Rates change often and differ widely. We have left rupee figures out of this page deliberately, because several states amended them in 2024 and 2026.
For a foreign employer, the risk is the gap between states. Suppose your first India hires sit in Pune and later you add a team in Bengaluru. Your Maharashtra June deduction does nothing for Karnataka, which wants its own annual payment in December. Two calendars.
What should you know about the Labour Welfare Fund in Maharashtra?
The labour welfare fund maharashtra levy applies to every employee whose name is on your register on 30 June and 31 December, whatever their wage. You deduct the employee share, add your three-times share, and remit to the Maharashtra Labour Welfare Board.
The Maharashtra Labour Welfare Fund (Amendment) Act, 2024 rewrote the contribution clause. It lets the state raise the employee rate once every three years, by up to 30%, as PRS India’s copy of the Maharashtra bill shows.
Here is the catch. The date the new Maharashtra rates took effect has not been confirmed, and many payroll tools still show older figures. So check the current rate with the Board before each June and December run.
The sums are small. The filings still count. LWF usually appears on the same payslip as professional tax, and both are state levies with their own registration, so an auditor checking one will often ask about the other.
Treat it as part of your statutory compliance calendar, not an afterthought. LWF is separate from ESI, which is a central health scheme.
How does Remunance manage LWF for your India payroll?
Remunance tracks LWF rules state by state, deducts the employee share on the right register date and remits both shares to each state board. It is part of the statutory scope we run, next to Professional Tax, EPF and ESIC.
If you employ through your own entity, our compliance management in India service can take over the filings. Ask us to review your state levies.
What else do people ask about LWF?
Is the Labour Welfare Fund mandatory?
Yes, in states that have an LWF Act. Where the Act applies to your establishment, both the employee deduction and your employer share are compulsory, and you cannot opt out by agreement with staff.
When is LWF deducted in Maharashtra?
From salaries for June and December, for every employee on the register on 30 June and 31 December. Remittance follows in July and January.
Does LWF apply to all employees?
In Maharashtra, it applies to everyone on the register on those dates, regardless of salary. Other states use their own wage tests and exemptions.