Tamil Nadu LWF is annual: ₹20 from each employee, ₹40 from the employer and ₹20 from the Government, under Rule 11-A as amended by G.O.(Ms) No. 161 of 2 December 2022. It applies to factories, plantations, motor transport undertakings, and shops, catering and other establishments with 5 or more persons. Pay through the Board's portal, lwmis.lwb.tn.gov.in.
LWF contribution in Tamil Nadu
The contribution is fixed by section 15 and Rule 11-A of the Tamil Nadu Labour Welfare Fund Act, 1972 and Rules, 1973.
| Who pays | Amount per employee a year |
|---|---|
| Employee | ₹20 |
| Employer | ₹40 |
| Paid by the employer to the Board | ₹60 |
| Government (paid separately) | ₹20 |
G.O.(Ms) No. 161, Labour Welfare and Skill Development (G2), 2 December 2022, published in Tamil Nadu Gazette Extraordinary No. 538 the same day, doubled the earlier ₹10, ₹20 and ₹10. Some State pages still show the 2015 rates.
When to deduct and pay
- The contribution is yearly (section 15). The Rules copy on the Board's site and other published guides give different deduction months and due dates, so confirm the date for the current year on the Board's portal before paying.
Who is covered
- Factories, motor transport undertakings and plantations (section 2(d)).
- Catering establishments, and other establishments, societies and trusts, employing 5 or more persons; branches count together.
- Any other establishment the Government notifies.
Not covered: Managerial staff, and supervisors drawing over ₹15,000 a month (Tamil Nadu Act 8 of 2018, from 14 March 2018).
Late payment, interest and where to pay
Unpaid accumulations and fines not paid after a demand notice carry simple interest of 1% a month for three months and 1.5% a month after that (section 14). Court fines and compounding fees under labour laws also go to the Fund (section 3).
Pay at lwmis.lwb.tn.gov.in, linked as "LWF Payment" on the Board's website.
Worked example
A Coimbatore textile shop with 3 staff is below the 5-person limit and does not contribute. A Madurai restaurant with 3 cooks and 2 waiters (5 persons) does:
| Item | Calculation | Amount |
|---|---|---|
| Deducted from staff | 5 × ₹20 | ₹100 |
| Employer share | 5 × ₹40 | ₹200 |
| Paid to the Board for the year | ₹100 + ₹200 | ₹300 |
If the restaurant's manager supervises the others and earns ₹28,000 a month, they are excluded (supervisor above ₹15,000), but the headcount for coverage still counts persons employed.
What we could not confirm
Not found on an official source on 21 October 2026, so not stated as fact here:
- The current due date and deduction month (official copies conflict)
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.