Summary: Labour Welfare Fund (LWF) is a State-specific statutory contribution whose applicability, employee and employer contribution rates, deduction frequency, eligibility criteria and payment deadlines differ across India. This article examines the Labour Welfare Fund requirements for 2026 payroll in Haryana, Maharashtra, West Bengal, Tamil Nadu, Goa, Chandigarh and Odisha, based on official information reviewed by the author. Haryana prescribes a monthly employee contribution of 0.2% of wages, subject to a revised ceiling of Rs 35 from 1 January 2026, with the employer contributing twice that amount. Maharashtra requires half-yearly contributions of Rs 25 and Rs 75 from employees and employers, respectively, while West Bengal prescribes contributions of Rs 3 and Rs 30. Tamil Nadu requires annual contributions of Rs 20 and Rs 40. Goa follows a half-yearly contribution cycle, whereas Chandigarh prescribes fixed monthly contributions with half-yearly remittance. Odisha prescribes annual employee and employer contributions of Rs 20 and Rs 40, respectively, with half-yearly remittance. The article explains the practical implications of employee transfers between States, retrospective revisions in contribution ceilings, establishment-specific applicability and exclusions for certain categories of employees. Through practical payroll examples, it highlights the risks of applying uniform contribution formulas across multiple States. Employers should verify employee work locations, statutory eligibility, applicable contribution periods, revised notifications and remittance deadlines before processing payroll deductions and depositing contributions with the respective Labour Welfare Boards.
- Labour Welfare Fund Applicability in 2026 Payroll
- State-Wise Labour Welfare Fund Contribution Rates for 2026 Payroll
- Practical Examples of State-Wise Labour Welfare Fund Calculations
- Haryana: Monthly Contribution and Revised Wage-Based Ceiling
- Maharashtra: Fixed Half-Yearly Contributions
- West Bengal: Different Employee and Employer Contributions
- Tamil Nadu: Annual Contribution and Form A Filing
- Goa and Chandigarh: Differences in Contribution Frequency and Deadlines
- Odisha: Annual Rates With Half-Yearly Remittance
- Labour Welfare Fund Compliance Checklist for Employers
Labour Welfare Fund Applicability in 2026 Payroll
Labour Welfare Fund is a State levy, not a central PF or ESI charge. The State where the employee actually works decides whether a fund exists, how much each side pays, which months the deduction comes out of the wages, and when the Board has to receive the money. The company’s registered office does not decide this.
The table covers only those States and Union Territories whose official text I opened on 14 November 2026. Other States also collect a Labour Welfare Fund. Their figures are left out because I could not confirm them from an official labour department page or gazette this week. Check that State’s Board before you deduct.
State-Wise Labour Welfare Fund Contribution Rates for 2026 Payroll
| State / UT | Employee | Employer | How Often | Due Date | Who It Covers |
|---|---|---|---|---|---|
| Haryana | 0.2% of salary, wages or any remuneration a month, capped at Rs 35 from 1 January 2026 | Twice the employee amount, so capped at Rs 70 | Monthly | Deposit by 31 December each year | Factories, and shops or commercial establishments with 10 or more employees on any day or in the preceding 12 months |
| Maharashtra | Rs 25 | Rs 75 | Half-yearly, from June and December wages, for names on the register on 30 June and 31 December | 15 July and 15 January | Factories, motor transport, and shops or establishments with 5 or more persons. Not for someone employed mainly in a managerial capacity, a supervisor drawing wages above Rs 3,500 a month (or who mainly does managerial work), or an apprentice under the Apprentices Act, 1961 |
| West Bengal | Rs 3 | Rs 30 | Half-yearly, for employees on the register at the periods ending 30 June and 31 December | Before 15 July and 15 January under Section 9(3) of the West Bengal Labour Welfare Fund Act, 1974 | Employees on the establishment register at each period-end |
| Tamil Nadu | Rs 20 a year | Rs 40 a year | Once a year, from December wages, including a person who worked at least 30 days in that year | 31 January of the next year, with Form A | Factories, motor transport, plantations, and catering or other establishments with 5 or more persons, including societies and trusts carrying on business or trade. Not a non-factory Central or State Government establishment. Also out: a person employed mainly in a managerial capacity, a supervisor drawing wages above Rs 15,000 a month (or who mainly does managerial work), an apprentice, and a part-time employee |
| Goa | Rs 10 | Rs 30 | Half-yearly, January to June and July to December | 31 July and 31 January | The official Labour Department page does not print a headcount or exclusion list |
| Chandigarh | Rs 5 a month | Rs 20 a month | Monthly contribution; half-yearly remittance | Before 15 October (April–September) and before 15 April (October–March), under Section 9A(2) of the Punjab Labour Welfare Fund Act, 1965, as extended to Chandigarh | The Board page describes the levy as applying to workers in factories, shops and commercial establishments |
| Odisha | Rs 20 annually (normally Rs 10 per half-year) | Rs 40 annually (normally Rs 20 per half-year) | Half-yearly remittance for employees on the register on 30 June and 31 December | Before 15 July and 15 January, with Form F under Rule 6 of the Odisha Labour Welfare Fund Rules, 2015 | All factories and motor transport, and shops, commercial establishments, societies and trusts with 20 or more persons. A person employed for 30 days in 12 months is covered, other than someone employed mainly in a managerial capacity, an apprentice, or a part-time worker |
Practical Examples of State-Wise Labour Welfare Fund Calculations
The usual error is to copy the first State’s formula into the next one.
Haryana: Monthly Contribution and Revised Wage-Based Ceiling
Take a person earning Rs 20,000 a month in Gurugram in February 2026. Haryana asks for 0.2% of salary, wages or any remuneration, subject to a cap of Rs 35 from 1 January 2026. 0.2% of Rs 20,000 is Rs 40, so the employee share is Rs 35, not Rs 40. The employer pays twice that amount, which is Rs 70. This runs every month, and the year’s contribution is to be deposited by 31 December.
The cap itself moves. The Haryana Labour Welfare Board notification of 8 May 2026, published in the Gazette on 11 May 2026, records that the 2025 limit was Rs 34 and that the 2026 limit of Rs 35 applies from 1 January 2026. The cap is indexed to the consumer price index from 1 January each year. The notification arrived in May, with effect from January, so January to April deductions that used the old cap need a second look.
Maharashtra: Fixed Half-Yearly Contributions
Now move the same person to a Mumbai establishment, and keep that person on the register on 30 June 2026. Maharashtra does not use 0.2% at all. Under the Maharashtra Labour Welfare Fund (Amendment) Act, 2024, the employee share is a fixed Rs 25, and the employer share is three times that, or Rs 75. The deduction is taken only from June and December wages, and both shares have to reach the Maharashtra Labour Welfare Board before 15 July and 15 January. If the Gurugram formula is left running on the Mumbai payroll, both of those payslips will be wrong, and the monthly deductions should not have been there.
West Bengal: Different Employee and Employer Contributions
West Bengal uses the same two period-end dates as Maharashtra, but the amounts are Rs 3 and Rs 30, in force from 1 January 2024 under Labour Department notification No. Labr/576641/2024. A Maharashtra row pasted into a Kolkata payroll will over-deduct. Section 9(3) of the West Bengal Labour Welfare Fund Act, 1974 prescribes remittance before 15 July and 15 January.
Tamil Nadu: Annual Contribution and Form A Filing
Tamil Nadu is once a year, Rs 20 and Rs 40, for the year ending December. The Board’s current Form A already prints those rates. A Board notice of 7 January 2022 asked employers to pay, with Form A, on or before 31 January of the next year, and said persons employed for 30 days in a year should contribute. That notice still showed the older Rs 10 and Rs 20. The current amounts come from G.O. Ms. No. 161 dated 2 December 2022.
Goa and Chandigarh: Differences in Contribution Frequency and Deadlines
Goa is also half-yearly, but payment is later than in Maharashtra: 31 July and 31 January. Chandigarh is monthly, like Haryana, but the amounts are a fixed Rs 5 and Rs 20, not a percentage with a cap. Chandigarh’s accumulated monthly contributions are remitted twice a year: before 15 October for April to September and before 15 April for October to March.
Odisha: Annual Rates With Half-Yearly Remittance
Rule 6(1) of the Odisha Labour Welfare Fund Rules, 2015 prescribes Rs 20 per employee and Rs 40 per employer per employee annually. Rule 6(2) requires half-yearly remittance with Form F, before 15 July for the June register and before 15 January for the December register. The ordinary equal half-yearly allocation is Rs 10 from the employee and Rs 20 from the employer, totalling Rs 30 per half-year and Rs 60 annually for an employee covered in both periods. The rule does not expressly state the instalment amounts; employers should confirm the allocation for employees joining or leaving during the year with the Board where necessary.
Labour Welfare Fund Compliance Checklist for Employers
A few checks before the file goes to the Board:
- In which State does the employee actually work, and did that location change during the contribution period?
- Is the person’s name on the establishment register on the date that State uses, if it uses one?
- Do that State’s exclusions apply (managerial work, a supervisory wage cutoff, an apprentice, or part-time work)?
- Has a later official notification changed the rate or the cap since the source you are using was issued?
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In EngageHRMS, Labour Welfare Fund is computed in the same payroll run as PF, ESI and professional tax, at the rate and frequency of the employee’s work location. I work at EngageHRMS.
