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LWF Rates India 2026

State-Wise Labour Welfare Fund Rates

Current employee and employer LWF contribution rates across all 16 Indian states and union territories. Verified rates, filing frequency, due dates, and exclusions for payroll teams.

16
States levy LWF
20
States exempt
3
Filing frequencies
₹3–240
Rate range
Overview

What is the Labour Welfare Fund (LWF)?

The Labour Welfare Fund is a statutory contribution managed by individual State Labour Welfare Boards. Unlike Professional Tax, there is no central LWF law — each state sets its own contribution amounts, frequency, and rules. LWF contributions follow a fixed-amount model in most states (not a percentage of salary, except Haryana).

The deduction is made only in the contribution month — not every month. If a state follows an annual cycle, the deduction happens once a year. If it follows a half-yearly cycle, the deduction happens twice a year (June and December). Employees in managerial or supervisory roles above a certain wage ceiling are usually excluded.

State-level law

Each state has its own LWF Act. No single central Act applies across India.

Two-party contribution

Employee share is deducted from salary. Employer adds a matching or higher share.

Variable cycle

Monthly, half-yearly, or yearly depending on state. Some use June and December.

Penalty on default

Most states levy interest plus damages on delayed payment. Prosecution possible.

Note: LWF is a welfare contribution and is not the same as Professional Tax (PT). It is not tax-deductible under Section 16(iii) of the Income Tax Act. It is treated as a normal business expense for the employer.
State-wise rates 2026

LWF Contribution Rates by State

All 16 Indian states and UTs that levy Labour Welfare Fund. Click any state to see full details.

State / UTEmployee (₹)Employer (₹)Total (₹)FrequencyCycle
Andhra Pradesh3070100YearlyDecember
Chandigarh52025MonthlyEvery month
Chhattisgarh154560Half-YearlyJun + Dec
Delhi0.752.253Half-YearlyJun + Dec
Goa60180240Half-YearlyJun + Dec
Gujarat61218Half-YearlyJun + Dec
Haryana0.2% (max 35)2× (max 70)~105MonthlyEvery month
Karnataka50100150YearlyDecember
Kerala5050100MonthlyEvery month
Madhya Pradesh103040Half-YearlyJun + Dec
Maharashtra2575100Half-YearlyJun + Dec
Odisha204060Half-YearlyJun + Dec
Punjab52025MonthlyEvery month
Tamil Nadu204060YearlyDecember
Telangana257YearlyDecember
West Bengal33033Half-YearlyJun + Dec
Rates verified as on July 2026. State Labour Welfare Boards revise amounts periodically. Cross-check the latest gazette notification before filing.
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Andhra Pradesh

Yearly
Employee share
₹30 / year
Employer share
₹70 / year
Total per employee
₹100 / year
Deduction frequency
Annual
Deduction date
31 December
Excluded employees

Employees in a managerial capacity; apprentices; part-time workers.

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Chandigarh (UT)

Monthly
Employee share
₹5 / month
Employer share
₹20 / month
Total per employee
₹25 / month
Deduction frequency
Monthly
Deduction date
Last day of the month
Excluded employees

Managerial/supervisory staff (per the Act definition).

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Chhattisgarh

Half-Yearly
Employee share
₹15
Employer share
₹45
Total per employee
₹60
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/administrative/supervisory staff drawing wages above ₹10,000/month.

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Delhi

Half-Yearly
Employee share
₹0.75
Employer share
₹2.25
Total per employee
₹3
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/supervisory staff; employees earning above ₹2,500/month; apprentices.

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Goa

Half-Yearly
Employee share
₹60
Employer share
₹180
Total per employee
₹240
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial staff; supervisory staff drawing wages above ₹1,600/month.

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Gujarat

Half-Yearly
Employee share
₹6
Employer share
₹12
Total per employee
₹18
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/supervisory staff drawing wages above ₹3,500/month.

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Haryana

Monthly
Employee share
0.2% of wages
Maximum ₹35 per month
Employer share
2× employee
Maximum ₹70 per month
Total per employee
Up to ₹105
Deduction frequency
Monthly
Deduction date
Last day of the month

Haryana is the only state where LWF is calculated as a percentage of wages instead of a fixed rupee amount.

Excluded employees

Managerial/supervisory staff (per the Punjab Act definition).

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Karnataka

Yearly
Employee share
₹50 / year
Employer share
₹100 / year
Total per employee
₹150 / year
Deduction frequency
Annual
Deduction date
31 December
Excluded employees

Managerial/supervisory staff outside the Act's 'employee' definition.

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Kerala

Monthly

Kerala has different LWF rates depending on the type of establishment:

Establishment typeEmployeeEmployerTotalFrequency
Shops & Commercial₹50/mo₹50/mo₹100/moMonthly
IT / ITES₹100/mo₹100/mo₹200/moMonthly
Factories & Industrial₹45₹45₹90Half-yearly
Deduction date (monthly)
Last day of the month
Deduction date (half-yearly)
30 June & 31 December
Excluded employees

Per the Act's 'employee' definition.

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Madhya Pradesh

Half-Yearly
Employee share
₹10
Employer share
₹30
Total per employee
₹40
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/supervisory staff drawing wages above ₹10,000/month.

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Maharashtra

Half-Yearly
Employee share
₹25
Employer share
₹75
Total per employee
₹100
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial capacity; supervisory staff drawing wages above ₹3,500/month.

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Odisha

Half-Yearly
Employee share
₹20
Employer share
₹40
Total per employee
₹60
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/supervisory staff; apprentices; part-time workers.

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Punjab

Monthly
Employee share
₹5 / month
Employer share
₹20 / month
Total per employee
₹25 / month
Deduction frequency
Monthly
Deduction date
Last day of the month
Excluded employees

Managerial/supervisory staff (per the Act definition).

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Tamil Nadu

Yearly
Employee share
₹20 / year
Employer share
₹40 / year
Total per employee
₹60 / year
Deduction frequency
Annual
Deduction date
31 December
Excluded employees

Managerial/supervisory staff drawing wages above ₹15,000/month; apprentices; part-time.

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Telangana

Yearly
Employee share
₹2 / year
Employer share
₹5 / year
Total per employee
₹7 / year
Deduction frequency
Annual
Deduction date
31 December
Excluded employees

Managerial/supervisory staff drawing wages above ₹1,600/month.

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West Bengal

Half-Yearly
Employee share
₹3
Employer share
₹30
Total per employee
₹33
Deduction frequency
Half-yearly (June & December)
Deduction date
30 June & 31 December
Excluded employees

Managerial/supervisory staff drawing wages above ₹1,600/month.

How it works

LWF Deduction and Filing in 4 Steps

1

Identify state

Check whether the employee work state levies LWF. 16 states apply deduction.

2

Apply rate

Deduct employee share from salary. Add employer share to payroll cost.

3

Reconcile

Collect contributions across the cycle. Reconcile against headcount and exemptions.

4

Deposit & file

Pay the total to the state board within due date. File the prescribed return.

What happens if you miss LWF deposit

State Labour Welfare Boards treat LWF default seriously. Each state Act prescribes interest, damages, and prosecution.

  • Interest: 6 to 12% per annum on the delayed amount, state-dependent.
  • Damages: Up to 25% of the arrears in serious default cases.
  • Prosecution: Employer can be prosecuted under the state LWF Act.
  • Audit risk: Labour inspectors check LWF challans during inspections.
No LWF deduction

States and UTs Without LWF

These states do not currently levy Labour Welfare Fund.

Andaman & NicobarArunachal PradeshAssamBiharDadra & Nagar HaveliHimachal PradeshJammu & KashmirJharkhandLadakhLakshadweepManipurMeghalayaMizoramNagalandPuducherryRajasthanSikkimTripuraUttar PradeshUttarakhand
FAQ

Frequently Asked Questions

LWF is a statutory contribution collected by State Labour Welfare Boards to fund welfare activities for workers. It is not governed by any central Act — each state has its own Labour Welfare Fund Act with its own contribution amounts and payment cycles.
No. LWF is currently applicable in 16 states. If your state is not listed in this guide, LWF does not apply to your establishment.
Not necessarily. The deduction frequency depends on your state. Some states follow an annual cycle, some half-yearly (June and December), and some monthly. The employee's share is deducted only in the contribution month.
No. Professional Tax is deductible under Section 16(iii) of the Income Tax Act and paid to the commercial tax department. LWF is a welfare contribution paid to the State Labour Welfare Board and is not tax-deductible in the same way.
In most states, LWF is a fixed rupee amount per employee. Haryana is the only state where it is calculated as a percentage of wages (0.2% for the employee, capped at Rs 35).
Not all. Most states exclude employees in managerial or supervisory roles above a certain wage ceiling. Apprentices and part-time workers are also excluded in some states.
Kerala applies different LWF rates based on the type of establishment. Shops and commercial establishments, IT/ITES establishments, and factories/industrial establishments each have their own contribution amounts and frequency.

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