Labour Welfare Fund

Labour welfare fund (LWF) is an employee welfare scheme governed by the state government. Like EPF (Employee provident fund) and ESI (Employee State Insurance), LWF is also a scheme involving contributions from the employee & employer.

In some states the government contributes an additional amount over and above the fund contributed by the employer and employee.

Under this scheme, the employer has to deduct an adhoc amount (amount of deduction vary by State) from the salary of the employee and pay the same to the government after adding their contribution (usually double the amount deducted from the employee).

The government will in turn add their contribution and use the aggregate funds for implementing various welfare activities such as providing housing, medical care, educational, and recreational facilities to the workers and their dependents.

The rules and regulations relating to Labour welfare fund differ from state to state. This article contains details relating to Tamil Nadu Labour Welfare Fund Act, 1972 and related regulations.

• The provisions of this act applies to any employer/establishment employing five or more employees/ persons.
• Where an establishment consists of different departments or has branches in the same place or in different places, all such departments or branches shall be treated as parts of the same establishment.

• All employees employed for a period of 30 days during the preceding 12 months, except
  • Any person employed in a managerial capacity
  • Any person employed in a supervisory capacity drawing wages more than Rs. 15,000 per month
  • Any person who is employed as an apprentice or on part-time basis.

• Employee Contribution – Rs. 20/year
• Employer Contribution – Rs. 40/year
• Government Contribution – Rs. 20/year

• The contribution of each employee shall be deducted in the month of December (before 31^st December of the year)

• Contribution has to be paid in respect of discharged/dismissed/resigned employees also.
• The employee contribution should be deducted from the last wages paid.

• Every employer/establishment should pay an amount equal to 60 per employee per year (Employee contribution of Rs. 20 + Employer contribution of Rs. 40)

Note: the amount of contribution has been revised by GO No 161 dated 02/12/2022, Earlier contribution was Rs. 10, Rs. 20 and Rs. 10 (employee, employer and government respectively)

• The contribution should be paid before 31st January of the succeeding year.
• The employer shall along with such payment submit a statement in Form A giving full particulars of the amounts so paid.

• The payment shall be made by way of cheque or DD in the name of “The Secretary, Tamil Nadu Labour Welfare Board, Chennai-6”
• The TN government has also started testing online payment via www.lwb.tn.gov.in

• A register of wages in Form ‘B’
• A consolidated register of unpaid accumulations and fines and other deduction in Form ‘C’
• A visit book in which the Inspector visiting the establishment may record his remarks regarding any defects that may come to light at the time of inspection.
• The registers shall be preserved for a period of ten years from the date of last entry made therein
• The employer shall by the 31st January every year forward to the secretary a copy of the extract from the register in form ‘B’ pertaining to the previous year.

1. Online registration through lwb.tn.gov.in (Mandatory registration in respect of all employer/establishment employing five or more employees/ persons.)
2. Details/documents required for online registration:
   • Incorporation certificate in the case of companies / Partnership deed in case of firms
   • MOA or AOA
   • PAN number
   • TAN number
   • EPFO Code
   • ESIC Code
   • CIN (Corporate Identification number)
   • GSTIN
   • Identity, address proof & contact details of the proprietor in case of a sole proprietorship
   • Identity, address proof & contact details of a director (Authorised person) in case of a company
   • Identity, address proof & contact details of a partner (Authorised person) in case of a partnership
   • Email ID and phone number (of the employer/ establishment)