LABOUR WELFARE FUND – FAQ’s

LABOUR WELFARE FUND – FAQ’s

  • Are employers obligated to contribute for themselves under LWF in the applicable states?

Not all employers are required to contribute towards LWF in applicable states. The requirements vary from state to state. For further information refer the following link - Labour Welfare Fund [Knowledge Base]

  • What is the time frame for paying LWF in applicable states?

The time frame for paying LWF differs from state to state. Here are the time frames for the applicable states:


FREQUENCY
STATE

Yearly
Andhra Pradesh, Karnataka, Telangana, Tamil Nadu

Half Yearly
Chhattisgarh. Delhi, Goa, Gujarat. Madhya Pradesh, Maharashtra, Odisha, West Bengal

Monthly
Chandigarh, Haryana, Kerala

For exact due dates, please refer the following link - Labour Welfare Fund [Knowledge Base]

  • How many times an employee can claim LWF benefits?

The number of claims varies by state. For instance, in Tamil Nadu, educational benefits can be claimed annually for one child per employee, while all other benefits can be claimed only once.

  • Whether manager comes under definition of employee under LWF?

In Karnataka, there is no exemption for managers and hence, they come under the definition of an employee. In other States, an employee is a person who is employed for hire or reward to do any skilled, unskilled, manual, supervisory, clerical, or technical work in any establishment. However, it excludes individuals employed in a managerial capacity. Therefore, managers typically do not fall under the definition of “employee” for the purposes of LWF contributions in other States. However, the following states have specific conditions regarding managers:

  • Tamil Nadu- All employees earning wages below Rs.15000/-are required to pay contribution except those in part-time, apprentice and managerial positions drawing wages more than Rs.15000/- per month.
  • Punjab- All employees are required to contribute to LWF.
  • Haryana- All employees employed, directly by or through any agency, including contractor for remuneration in any factory or establishment.
  • Process of claiming LWF benefits – state wise?

Andhra Pradesh:

To claim benefits under the LWF in Andhra Pradesh the individual needs to log into their account on the AP Labour Welfare Board’s website and apply for the respective scheme AP Labour Welfare Board’s website.

Chandigarh:

To claim benefits under the LWF in Chandigarh, Pradesh the individual needs to log into their account and apply for the respective scheme http://labour.chd.gov.in/.

Chhattisgarh:

To claim benefits under the LWF in Chhattisgarh, the individual needs to fill out Form offline and submit it to the concern department. (Soon it will be available online)

Delhi:

To claim benefits under the LWF in Delhi, the individual needs to fill out Form offline and submit it to the concern department.

Goa:

To claim benefits under the LWF in Goa, the individual can log into their account and apply for the respective schemehttps://goaonline.gov.in/Appln/UIL/DeptServices?__DocId=LEM&__ServiceId=LEM15 .

Gujarat:

To claim benefits under the LWF in Gujarat, the individual needs to fill out Form the individual can log into their account and apply for the respective scheme https://glwb.gujarat.gov.in/images/glwb/pdf/labour-welfare-fund-form-a-1.pdf .

Haryana:

To claim benefits under the LWF in Haryana, the individual can log into their account and apply for the respective scheme https://www.hrylabour.gov.in/.

Karnataka:

To claim benefits under LWF in Karnataka, the individual needs to fill out Form offline and submit it to the concern department.

Kerala:

To claim benefits under the LWF in Kerala, the individual needs to fill out Forms available in the portal by logging into their account and apply for the respective scheme https://labourwelfarefund.in/forma .

Madhya Pradesh:

To claim benefits under the LWF in Karnataka, the individual need to fill out Form offline and submit it to the concern department.

Maharashtra:

To claim benefits under the LWF in Maharashtra the individual can log into their account and apply for the respective scheme https://mahakamgar.maharashtra.gov.in/lwb-index.htm .

Odisha:

To claim benefits under the LWF in Odisha, the individual can log into their account and apply for the respective scheme https://olwboard.labdirodisha.gov.in/.

Punjab:

To claim benefits under the Labour Welfare Fund in Punjab, the individual can log into their account and apply for the respective scheme Punjab Labour Welfare Board’s website.

Tamil Nadu:

To claim benefits under the LWF in Tamil Nadu, the individual needs to fill out a Form offline and submit it to the concern department.

Telangana:

To claim benefits under LWF in Telangana, the individual needs to fill out a Form offline and submit it to the concern department.

West Bengal:

To claim benefits under LWF in West Bengal, the individual needs to fill out Form A and can download Form A from the West Bengal Labour Welfare Board’s website.

  • How much will be deducted from employees and employers for LWF – State wise?

The Labour Welfare Fund (LWF) deduction varies from state to state. Please refer to the following link - Labour Welfare Fund [Knowledge Base] .

  • What are the benefits an employee can receive from LWF ?

In general, the money in the Fund may be utilized by the Board to defray expenditure on the following:

  • Educational facilities for the children of the workers.
  • Medical facilities for both private and public-sector employees to facilitate medical facilities for their workers and their families.
  • Transport facilities to the workers for commuting to work.
  • Recreational facilities in the form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment.
  • Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
  • Excursions, tours and holiday homes.
  • Home industries and subsidiary occupations for women and unemployed persons.
  • Reading rooms and libraries.
  • Vocational training.
  • Nutritious food to children of employees.
  • What are the consequences employers would face if they failed to pay remittance under LWF – State wise?

Andhra Pradesh

  • Interest on Unpaid Amounts: Employers may incur interest on unpaid amounts, typically starting at 1% for the first three months and increasing thereafter.
  • Fines: Employers can be fined for non-compliance. The penalty can be up to ₹500 for first-time offenses.
  • Imprisonment: Repeated non-compliance can lead to imprisonment for up to three months.

Chandigarh

  • Interest on Unpaid Amounts: Employers may incur interest on unpaid amounts, typically starting at 1% for the first three months and increasing thereafter.
  • Fines: Employers can be fined up to ₹5,000 for non-compliance.
  • Imprisonment: Repeated non-compliance can lead to imprisonment for up to three months.

Chhattisgarh

  • Interest on Unpaid Amounts: Employers may incur interest on unpaid amounts, typically starting at 1% for the first three months and increasing thereafter.
  • Fines: Employers can be fined for non-compliance. The penalty can be up to ₹500 for first-time offenses.
  • Imprisonment: Repeated non-compliance can lead to imprisonment for up to three months

Delhi

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Goa

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Gujarat

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Haryana

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Karnataka

  • * Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Kerala

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Madhya Pradesh

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Maharashtra

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Odisha

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Punjab

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹5,000 for non-compliance.
  • Imprisonment: Up to three months for repeated non-compliance.

Tamil Nadu

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

Telangana

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.

West Bengal

  • Interest: 1% for the first three months, increasing thereafter.
  • Fines: Up to ₹500 for first-time offenses, up to ₹1,000 for repeated offenses.
  • Imprisonment: Up to three months for repeated non-compliance.
  • How to amend director’s name, address & other establishment details in LWF records?

If there are any changes the establishment is required to make amendments. the process of amending the director’s name, address & other establishment details differ from state to state. Most portals allow amendment of employer details through logging into their employer portal. Please find below the portal links.

  • What happens to LWF if the establishment is merged with or acquired?

When an establishment merges with another or been acquired, the Labour Welfare Fund (LWF) registration typically needs to be updated to reflect the new organizational structure. Here are the general steps one might need to follow:

  1. Notification to Authorities: Inform the relevant labour welfare board about the merger. This usually involves submitting a formal notification or application detailing the merger.
  2. Update Registration Details: The merged entity will need to update its registration details with the labour welfare board. This may include changes in the name, address, and other relevant information of the establishment. Provide necessary documents such as the merger agreement, updated PAN card, and any other required legal documents.
  3. Verification: The labour welfare board may verify the submitted documents and details. Upon successful verification, the registration details will be updated to reflect the new entity.
  4. Compliance: Ensure that all compliance requirements, such as contributions to the welfare fund, are continued seamlessly under the amended entity.
faq/labour_welfare_fund_-_india.txt · Last modified: 2024/10/23 15:36 by compliance_manager

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