Is Labour Welfare Fund mandatory?

Yes, in States that have an LWF Act, for the establishments and employees it covers. The employer must deduct the employee share and pay both shares to the State Labour Welfare Board by the due date.

Which State has the highest LWF?

Of the States we verified, Haryana: 0.2% of wages up to ₹35 a month for the employee, with the employer paying twice that, up to ₹1,260 a year in all.

Is LWF deducted every month?

Usually not. Maharashtra, Delhi, Chhattisgarh and Goa collect it twice a year, Karnataka, Tamil Nadu and Andhra Pradesh once a year. Haryana works it out monthly but collects it by 31 December.

Is the consultation really free?

Yes. The consultation and case assessment are free, with no obligation. If you decide to go ahead, there is still nothing to pay upfront: FundRaksha Legal charges 30% only on the amount actually recovered. Court fees, if a matter goes to court, are borne by the client.

Are there any upfront fees?

No. FundRaksha Legal charges a 30% success fee, only on the amount actually recovered. If nothing is recovered, there is no success fee. Court fees, if any, are borne by you and told to you upfront.

How fast does my case start?

Within 24 hours of receiving your complete documents, a dedicated advocate is assigned and the legal notice is sent as an e-notice, followed by registered post.

Do most cases go to court?

No. About 60% of our cases settle before anything is filed, through the notice, negotiation and a payment plan. The rest go to MSME Samadhaan, a Section 138 complaint, a civil suit or arbitration, handled by the same advocate.

Do you work with businesses anywhere in India?

Yes. Notices, filings and follow-ups are handled digitally, and advocates appear wherever the matter is heard. FundRaksha works with suppliers, manufacturers, traders, distributors and service businesses in every state.

Labour Welfare Fund by State 2026: Rates and Due Dates

Labour Welfare Fund by state: contribution rates and due dates (2026)

The Labour Welfare Fund is a small State levy, but every State runs it differently: different amounts, different periods, different size limits. This table compares the nine States and UTs whose current rates we read on official sources on 21 October 2026, and lists the ones we could not confirm.

Short answer

Labour Welfare Fund is a State contribution, deducted from employees and matched (usually two or three times) by the employer, to fund welfare schemes for workers. It ranges from ₹6 a year in Delhi to ₹1,260 a year in Haryana for an employee at the cap. Maharashtra, Delhi, Chhattisgarh and Goa collect it half-yearly, Karnataka, Tamil Nadu and Andhra Pradesh annually, and Haryana works it out monthly but collects once a year by 31 December. There is no central LWF: if your State has no LWF Act, nothing is deducted.

State-wise LWF table

Each State links to a page with the Act section, coverage, interest on late payment and a worked example.

State	Basis	Employee	Employer	Due
Maharashtra	Half-yearly	₹25	₹75	15 July, 15 January
Karnataka	Annual	₹50	₹100	15 January
Tamil Nadu	Annual	₹20	₹40	Check the Board portal
Andhra Pradesh	Annual	₹30	₹70	Check with the Board
Haryana	Monthly, paid yearly	0.2% of wages, up to ₹35 a month	Twice the employee share	31 December
Chhattisgarh	Half-yearly	₹15	₹45 (minimum ₹1,500)	15 July, 15 January
Delhi	Half-yearly	₹0.75	₹2.25	15 July, 15 January
Goa	Half-yearly	₹60 (₹120 a year)	₹180 (₹360 a year)	31 July, 31 January
Chandigarh	Monthly rate	₹5 a month	₹20 a month	Check with the Board

Employee and employer amounts are per employee for the period shown in the Basis column. Several States also add a Government share, which the employer does not pay.

Who is covered: size limits differ

State	Shops and establishments covered from	Factories
Maharashtra	5 persons	Covered (5 or more with power)
Karnataka	More than 50 persons in the Act text; a 2025 Bill lowers it to 10	Covered
Tamil Nadu	5 persons	Covered
Andhra Pradesh	20 persons	Covered
Haryana	10 employees	Covered
Chhattisgarh	10 persons	Covered
Delhi	5 persons	Covered
Goa	No minimum	Covered

Most States also exclude managers and supervisors above a salary limit, which is often decades old (₹1,600 in Goa, ₹2,500 in Delhi, ₹3,500 in Maharashtra, ₹15,000 in Tamil Nadu). Haryana and Karnataka have no salary cut-off.

States we could not confirm, and States without LWF

Gujarat: the Act allows up to ₹6 (employee) and ₹12 (employer) a half-year; we did not find the notification fixing the current rate.
Telangana: the official text still shows ₹2 and ₹5 a year from before 2015; we found no revision.
Madhya Pradesh: the official text we could open is current only to 1997; a 2026 revision is reported but we did not see it.
Punjab: a 2025 Amendment Bill raising the rate to ₹10 and ₹40 a month was passed; we did not find its Gazette publication.
West Bengal: a 2024 notification reportedly raised the employer share; the official file and the LWF portal could not be opened.
Odisha and Kerala: the Acts exist, but the current amounts were not available on an official source we could open.

Pages for these will be added once the current rate is confirmed on an official source. Among the larger States, we found no Labour Welfare Fund levy for Rajasthan, Uttar Pradesh, Bihar, Jharkhand or Assam, but we have not confirmed that on an official source either, so check with the State labour department if you employ staff there.

Worked example: one employee, five States

An employee on ₹20,000 a month, on the register all year in a covered establishment, for 2026:

State	Employee pays	Employer pays	Total a year
Delhi	₹1.50	₹4.50	₹6
Tamil Nadu	₹20	₹40	₹60
Karnataka	₹50	₹100	₹150
Maharashtra	₹50	₹150	₹200
Haryana	₹420 (₹35 × 12)	₹840	₹1,260

The amounts are small next to PF and ESI, but missing dates leads to interest and notices, and the deduction must appear on the payslip in the right month.

Add LWF to payroll once

FundRaksha HR handles PF, ESI and professional tax in each payroll run and lets you add LWF as a deduction in the months your State collects it. Compare professional tax on the professional tax slabs by state page.

Sources

Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.

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