LWF full form: meaning in your salary slip and state-wise rates for 2026
LWF stands for Labour Welfare Fund. It is a small amount deducted from an employee’s salary and matched by the employer, paid to the state Labour Welfare Board. The board uses it for workers’ welfare schemes such as education support, medical help and housing. Each state sets its own rates and payment cycle, and some states have no LWF at all.
What LWF means on a salary slip
If your payslip shows “LWF” or “LWF EE”, that is your own share of the Labour Welfare Fund. “LWF ER” is the employer’s share, which the employer pays on top and does not take from your salary. The amounts are small, usually between ₹1 and ₹75 at a time, and the deduction appears only in the months your state collects it.
- LWF EE: employee contribution, deducted from salary
- LWF ER: employer contribution, paid by the company
- Monthly, half-yearly or annual: depends on the state (see the table below)
State-wise LWF rates for 2026
Amounts are in rupees per employee for each payment period.
| State | Employee | Employer | How often |
|---|---|---|---|
| Maharashtra | 25 | 75 | Half-yearly |
| Gujarat | 6 | 12 | Half-yearly |
| Karnataka | 50 | 100 | Annual |
| Tamil Nadu | 20 | 40 | Annual |
| Andhra Pradesh | 30 | 70 | Annual |
| Telangana | 2 | 5 | Annual |
| Madhya Pradesh | 10 | 50 | Half-yearly |
| Chhattisgarh | 15 | 45 | Half-yearly |
| West Bengal | 3 | 30 | Half-yearly |
| Odisha | 20 | 40 | Half-yearly |
| Goa | 60 | 180 | Half-yearly |
| Delhi | 0.75 | 2.25 | Half-yearly |
| Haryana | 0.2% of wages, up to 35 | Twice the employee share, up to 70 | Monthly |
| Punjab | 5 | 20 | Monthly |
| Chandigarh | 5 | 20 | Monthly |
| Kerala (Labour Welfare Fund Act 1975) | 45 | 45 | Half-yearly |
| Kerala (shops and commercial establishments, 2006 Act) | 50 | 50 | Monthly |
Kerala has two separate funds. Factories and industrial units pay under the 1975 Act. Shops, offices and other commercial establishments pay under the Shops and Commercial Establishments Workers’ Welfare Fund Act 2006, which works out to ₹1,200 per employee a year, much higher than the 1975 fund.
States with no LWF
Uttar Pradesh, Rajasthan and Bihar do not run a Labour Welfare Fund contribution scheme. Many other states and union territories also have none; if your state is not in the table, check with its labour department before assuming nothing is due.
Who has to pay LWF
Coverage depends on the state law. In most states it applies to factories, shops and commercial establishments above a minimum number of employees, and to employees below a salary limit set by the state. Managers and senior staff above that limit are often outside the scheme. The employer deducts the employee share, adds its own share and pays both to the state board by the due date.
What happens if LWF is not paid
Late or missed LWF payments can attract interest, penalties and notices from the state Labour Welfare Board. The amounts per employee are small, so the bigger risk is an inspection that finds several years unpaid across many employees.
Frequently asked questions
What is the full form of LWF?
LWF stands for Labour Welfare Fund, a state-run fund financed by small contributions from employees and employers.
What is LWF EE and LWF ER on a salary slip?
LWF EE is the employee’s share deducted from salary. LWF ER is the employer’s share, paid by the company on top of salary.
Is LWF deducted every month?
Only in some states. Haryana, Punjab, Chandigarh and Kerala’s shops scheme collect monthly; Maharashtra, Gujarat and several others collect twice a year; Karnataka, Tamil Nadu, Andhra Pradesh and Telangana collect once a year.
Is LWF compulsory?
Yes, in states that have a Labour Welfare Fund Act, for the establishments and employees the Act covers.
Which states do not have LWF?
Uttar Pradesh, Rajasthan and Bihar have no LWF contribution, along with several other states and union territories.
Run LWF and payroll compliance with TMS
Running payroll across several states? TMS registers, deducts and files LWF for employers in every state that has it, along with PF, ESI and professional tax. See LWF compliance services.