Overview
Labour Welfare Fund (LWF) is a statutory fund constituted by various State Governments under their respective Labour Welfare Fund Acts to promote the welfare of workers and their dependents. Covered establishments contribute a small periodic amount — partly deducted from the employee and partly contributed by the employer — which is deposited with the State Labour Welfare Board and used for facilities such as medical care, education, housing, and recreational and cultural activities for workers.
Applicability, contribution rates and deposit frequency differ from state to state (for example Maharashtra, Karnataka, Gujarat, Tamil Nadu, Delhi and others have their own rules and due dates). TaxoSure helps you register your establishment, determine the correct employee and employer contribution, and stay compliant with timely LWF deposits and the half-yearly or annual return.
Key Features
- Statutory welfare contribution managed by the State Labour Welfare Board.
- A small contribution shared between the employee and the employer.
- Funds used for medical, educational, housing and recreational benefits for workers.
- Applicable to many shops, establishments and factories once they cross the employee threshold set by the state.
- Periodic deposit (monthly, half-yearly or annual) depending on the state.
Who Should Register
- Factories, shops and commercial establishments covered under the applicable State Labour Welfare Fund Act.
- Establishments employing the minimum number of employees prescribed by the state (the threshold varies by state).
- Employers who deduct or are liable to contribute to the Labour Welfare Fund for their workers.
If you are unsure whether your establishment is covered, our team will confirm applicability for your state.
Documents Required
- PAN Card of the establishment or proprietor.
- Certificate of incorporation or registration of the establishment (Shop & Establishment, GST or similar).
- Details and count of employees with their salary or wage details.
- Address proof of the establishment.
- Bank account details of the establishment.
- Employer and authorised-signatory KYC (PAN and Aadhaar).
Registration Process
- Share your establishment details and confirm LWF applicability for your state.
- We prepare and verify the required documents and employee details.
- We register your establishment with the State Labour Welfare Board.
- We compute the correct employee and employer contribution.
- We help you deposit the contribution and file the periodic LWF return on time.