India Labour Welfare Fund (LWF) Calculator by State
The State’s labour welfare fund, per employee and for the whole payroll.
What is payable
| Covers | Due | Employees’ share | Employer’s share | To remit |
|---|
The State’s own rule
Checks and notes
For information, not advice. Each State fixes its own amounts and dates — confirm them with the welfare board before you remit.
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the India Labour Welfare Fund (LWF) Calculator by State
A labour welfare fund is a State levy, not a central one. Each State’s own Act and rules fix how much the employee and the employer pay for each worker, how often it is paid, which month the employee’s share may be deducted from, and the date the remittance is due — and a State welfare board collects it. There is no common rate: in one State it is a few rupees a half-year, in another ₹150 a year, and not every State has a fund.
Pick your State and the number of employees (or paste the staff list) and this page shows the amount for each employee, the employer’s own share, the whole remittance, the deduction month and the due date, with the provision it comes from and a link to the board. Where the board publishes a notification we could read, the amounts are built in. Where it does not, the tool asks you for the amount instead of guessing — and says so plainly, because a payroll figure taken from a blog can cost an inspection.
How to use it
- Choose the State where the employees work (not where the head office is: the fund follows the place of work).
- Choose one employee or the whole establishment. In the whole-establishment mode enter the headcount and how many employees the State’s rules leave out; in the list mode paste the staff — one employee to a line, with the monthly wages after a comma, and
xin a third column for anyone left out. - If the State’s amount is not built in, enter the employee’s share and the employer’s share from the board’s own notification and choose how often it is paid. The sources below link the board.
- Read the result: the amount for each employee, the employer’s share, the remittance for each due date, and the total for the year.
- Copy the summary for your payroll file or download the CSV for the challan, and keep the board’s notification with it.
Examples
State: Karnataka · 24 employees
₹50 from each employee and ₹100 from the employer — ₹150 an employee a year, and the State Government adds ₹50. Remittance ₹3,600 (₹1,200 + ₹2,400) by 15 January for the calendar year just ended.
State: Tamil Nadu · 10 employees
₹20 from each employee, ₹40 from the employer and ₹20 from the Government. The employer pays ₹600 before 31 July — by 30 July — and deducts the ₹20 from the June wages.
State: Maharashtra · 5 employees · ₹25 employee + ₹75 employer, twice a year
₹500 each half-year and ₹1,000 for the year — from the amounts you entered, with a note that they are not a notified rate built into the tool.
Common uses
- Working out the June or December payroll deduction and the challan for the board.
- Checking what a new office in another State will owe before the first payroll runs.
- Giving an auditor the amount per employee with the section it comes from.
- Totalling the remittance for a staff list pasted straight out of payroll software.
What the fund is, and who pays
The money goes to a State welfare board that runs housing, education, medical and recreation schemes for workers. Three things differ by State and are worth checking in the Act itself:
- Who is covered. Most Acts cover factories, shops and commercial establishments above a headcount, and many leave out people in a managerial or supervisory capacity above a wage limit — in Tamil Nadu, for example, a supervisor drawing more than ₹15,000 a month, and an establishment carrying on a business with five or more persons is covered. The board’s own page or notification states the limits; paste a staff list with the wages and the tool flags the people above Tamil Nadu’s limit.
- How often. Some States collect once a year for the calendar year, some twice a year with the employee’s share deducted from the June and December wages, a few every month.
- What may be deducted. Only the employee’s share may be deducted from wages, and only from the wage month the rules name. The employer’s own share is never recovered from the worker.
Late payment carries interest or a penalty under the State’s Act — Karnataka’s board, for example, says a delay attracts penal interest “at the rate of 12% for first 3 months and after 3 months 18% on the amount due”.
Why some States ask you for the amount
Amounts are built in only where the board’s own notification could be read on its official site:
- Karnataka — ₹50 from the employee and ₹100 from the employer each calendar year, with ₹50 from the State Government, under section 7A(2) of the Karnataka Labour Welfare Fund Act, 1965 as substituted by the Karnataka Labour Welfare Fund (Amendment) Act, 2024 (Karnataka Act 5 of 2025). The board takes it online by 15 January for the year just ended.
- Tamil Nadu — ₹20 from the employee, ₹40 from the employer and ₹20 from the Government each year, under rule 11-A of the Tamil Nadu Labour Welfare Fund Rules, 1973 as amended by G.O.(Ms) No.161 of the Labour Welfare and Skill Development (G2) Department. Rule 12 has the employer pay both shares before 31 July — so 30 July is the last day — and deduct the employee’s share from the June wages of employees on the register on 30 June.
For every other State with a welfare board the page links the labour department or the board and asks you to type the amount from its notification. The remaining States and Union territories are marked none found: no labour welfare fund for them was found on an official source, and the page says exactly that rather than claiming there is none. That is deliberate: a welfare-fund rate copied from a summary site is the kind of figure that quietly goes wrong, and payroll cannot be run on a guess.
Sources
- Karnataka Labour Welfare Board — the Act, the amendment in the Karnataka Gazette and the contribution press note with the due date and the penal interest
- Tamil Nadu Labour Welfare Board — the Act, the Rules, and the Government Order and Gazette on the rate of contribution
- Gujarat Labour Welfare Board, Labour Department, Maharashtra, Labour Department, Delhi, Labour Department, Haryana, Labour Department, Punjab, Labour Department, Madhya Pradesh, Labour Commissionerate, Kerala, Labour Department, Telangana, Labour Department, Andhra Pradesh, Labour Department, West Bengal, Labour and ESI Department, Odisha, Department of Labour, Goa, Labour Department, Chhattisgarh, Chandigarh Administration
- Ministry of Labour and Employment — the State labour departments, for a State marked “none found”
Limitations
- Amounts are built in only for the States whose official notification could be read; everywhere else you enter the amount, and the tool says plainly that it is yours, not a notified rate.
- Whether your establishment is covered at all — the headcount, the kind of establishment, and the wage limit above which a manager or supervisor is left out — is in the State’s own Act. Check it, and mark those employees as left out.
- A State marked “none found” is one for which no fund was found on an official source. That is not the same as “no fund”: check the State’s labour department before you conclude that nothing is payable.
- Interest and penalties for late payment follow the State’s Act and are not worked out.
- For information, not advice: confirm the amount and the date with the welfare board or your payroll adviser before you remit.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
Is the labour welfare fund the same in every State?
No. It is a State levy: each State’s Act and rules fix the amount, the frequency, the deduction month and the due date, and a State board collects it. There is no central rate and no central portal, so the first question is always which State the employees work in.
How much is the labour welfare fund in Karnataka?
₹50 from each employee and ₹100 from the employer for each employee — ₹150 a year that the employer remits — and the State Government adds ₹50, under section 7A(2) of the Karnataka Labour Welfare Fund Act, 1965 as substituted by the Karnataka Labour Welfare Fund (Amendment) Act, 2024. The board takes it online by 15 January for the calendar year just ended.
When is it deducted from salary in Tamil Nadu?
From the June wages of employees on the register on 30 June, and the employer pays both shares before 31 July, so by 30 July (rule 12 of the Tamil Nadu Labour Welfare Fund Rules, 1973). With the Inspector’s written permission a missed deduction may be made from a later month. By 31 January the employer also sends the board an extract of the wage register for the year before (rule 29(4)).
Can the employer’s share be deducted from wages?
No. Only the employee’s share may be deducted, and only from the wage month the rules name. Deducting the employer’s contribution from wages is a breach of the State’s Act.
My State says “none found” — does that mean nothing is payable?
Not necessarily. It means no labour welfare fund for that State was found on an official source. Check your State’s labour department (the Ministry of Labour and Employment links them all) and, if a fund applies, enter its amount here — the tool works it out the same way.
Is this the same as professional tax?
No. Professional tax is a tax on income from employment under the State’s profession tax Act (Article 276 of the Constitution), worked out from a salary slab — the professional tax calculator covers it. The labour welfare fund is a flat contribution per employee to a welfare board. Many States levy both.