Tamil Nadu Labour Welfare Fund Contribution Hiked Effective Jan 2015

As per a recent gazette notification issued by the government of Tamil Nadu, the Labour Welfare Fund (LWF) contribution has been increased as follows.

Employee Contribution: Rs 10 per annum
Employer Contribution: Rs 20 per annum

The increase in LWF contribution is effective January 2015. You can view the gazette notification here.

Please ensure that you deduct LWF from your employees’ salary as per the new rate, in both payroll and settlement processing, from January 2015 onwards.

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11 Comments

  1. swathy June 12, 2015

    It is very useful to me …

    reply
  2. Meenu May 30, 2016

    Hi,

    please confirm is LWF applicable if employees drawing salaries more than 10K gross.

    reply
    • gautham May 31, 2016

      With regard to labour welfare fund deduction in Tamil Nadu, the following employee categories are exempted:

      a. who are employed mainly in a managerial capacity and

      b. who are employed in a supervisory capacity drawing wages exceeding Rs 3,500 per month.

      Please note that many employers disregard the above and pay labour welfare fund for all or most employees given the fact that LWF amount is small and the ambiguity in the definition of terms such as “manager” and “supervisor”, particularly in the services sector.

      reply
  3. S.Rajeswari November 9, 2016

    Dear friends,

    i want to know about the procedure & needed documents for labour welfare fund registration. whether it is applicable for private limited company ? please give me suggestions.

    reply
    • gautham November 10, 2016

      I presume you are talking about LWF in Tamil Nadu. There is no formal registration required. You need to submit “Form – A” each year along with the LWF payment.

      reply
  4. Sankaran December 28, 2016

    IS LWF applicable to contract labours

    reply
    • gautham December 28, 2016

      Yes, it is applicable. In fact, many state governments explicitly state that the principal employer is liable to pay LWF for the contract labourers employed.

      reply
  5. Aruna August 1, 2017

    we newly started our establishment on 01/09/2016. here with we want to pay our LWF for the year of 2016-17 and 2017-18. how i can register our Establishment in TNLWF. pls advise or else, we can directly pay the welfare amount to LWF ?

    reply
    • gautham August 5, 2017

      You can pay LWF directly by submitting the DD/cheque along with Form A in which you need to state the name and address of your establishment.

      reply
  6. PRAFULLA KUMAR July 24, 2018

    WHICH TYPE OF EMPLOYEES ARE COVERED IN TERMS OF SALARY DRAWN PER MONTH UNDER CONTRIBUTION TO TAMIL NADU LABOUR WELFARE BOARD.

    WHICH TYPE OF EMPLOYEES ARE EXEMPTED UNDER CONTRIBUTION TO TAMIL NADU LABOUR WELFARE BOARD.

    REGARDS.

    reply

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