Statutory
LWFLabour Welfare Fund
Labour Welfare Fund is a small state-level contribution from employee and employer, deducted once or twice a year, that funds welfare schemes for workers.
Amounts are tiny (₹6 to ₹50 from the employee, a multiple from the employer) and are deducted in specific months: June and December in Maharashtra, Gujarat, Delhi and West Bengal; annually in Karnataka and Tamil Nadu.
Not every state has a fund, and applicability can depend on designation and salary.
In Indian payroll
Because it appears twice a year, LWF is the deduction most often forgotten. A compliance calendar and a payroll rule keyed to state and month handle it without anyone remembering.
What is LWF?
Labour Welfare Fund is a small state-level contribution from employee and employer, deducted once or twice a year, that funds welfare schemes for workers.
Why does LWF matter in Indian payroll?
Because it appears twice a year, LWF is the deduction most often forgotten. A compliance calendar and a payroll rule keyed to state and month handle it without anyone remembering.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where LWF is handled, on the same employee record as everything else.
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