In Andhra Pradesh every covered employee contributes ₹30 a year and the employer ₹70 a year for that employee (section 10(1), as substituted by AP Act 7 of 2015). The Act covers all factories and motor transport undertakings, and shops, establishments, societies and trusts with 20 or more persons. The Government can revise the rate by notification.
LWF contribution in Andhra Pradesh
The contribution is fixed by section 10 of the Andhra Pradesh Labour Welfare Fund Act, 1987.
| Who pays | Amount per employee a year |
|---|---|
| Employee | ₹30 |
| Employer | ₹70 |
| Paid by the employer to the Board | ₹100 |
Rate under section 10(1) as substituted by the AP Labour Welfare Fund (Amendment) Act, 2015 (Act 7 of 2015), which also lets the Government revise it by notification. We found no later revision, but confirm with the AP Labour Welfare Board.
When to deduct and pay
- The contribution is annual. The due date is set in the AP Labour Welfare Fund Rules, 1988, which we could not open on an official site; confirm it with the Board before paying.
Who is covered
- Factories under section 2(m) or section 85 of the Factories Act, and motor transport undertakings (section 2(4)).
- Shops and establishments, societies and trusts employing 20 or more persons.
- Others the Government notifies.
Not covered: Managerial staff, apprentices and part-time employees. An employee is a person employed for at least 30 days in 12 months. Act 7 of 2015 removed the old salary cap for supervisors.
Late payment, interest and where to pay
Unpaid accumulations and fines not paid within a notice of at least 30 days carry interest of 1% a month for three months and 1.5% a month after that (section 9).
We could not find an official online payment link for Andhra Pradesh; contact the Labour Welfare Board for the current payment method.
Worked example
A Guntur rice mill (a factory) has 3 workers, so it is covered regardless of size.
| Item | Calculation | Amount |
|---|---|---|
| Deducted from workers | 3 × ₹30 | ₹90 |
| Employer share | 3 × ₹70 | ₹210 |
| Paid to the Board for the year | ₹90 + ₹210 | ₹300 |
A Vijayawada retail shop with the same 3 staff is below 20 persons and does not contribute.
What we could not confirm
Not found on an official source on 21 October 2026, so not stated as fact here:
- Due date under the 1988 Rules
- Online payment portal (labour.ap.gov.in could not be read)
Keep LWF in the same payroll run as PF and ESI
LWF is small, but it is a separate deduction with its own dates, and it is the one most often forgotten. FundRaksha HR runs payroll with PF, ESI and professional tax, and lets you add LWF as a fixed deduction in the months your State collects it, so payslips show it correctly. Check the other deductions with the PF calculator and ESI calculator, and see every State on the labour welfare fund by state page.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.