How LWF is calculated?

LWF regulations in Haryana

• The rate of contribution from an employee is Rs. 0.2% of the salary or any remuneration subject to a limit of Rs. 25/-.
• The rate of contribution from an employer is twice the amount contributed by such employee.

What is LWF in salary structure?

Viewing Labour Welfare Fund Details. Labor Welfare Fund (LWF) is administered by the Ministry of Labor, government of India, in order to provide social security to unorganized labors. It is a deduction made from the employee’s wages as well as from the employer.

What is employee LWF contribution?

Labour welfare fund is a statutory contribution managed by individual state authorities. It is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.

What is Labour welfare fund?

Labour welfare is an aid in the form of money or necessities for those in need. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee.

Is LWF applicable for all employees?

The government has introduced the Labour Welfare Fund Act to provide social security to the workers. It is implemented only in 15 out of 34 states, including union territories. It is not applicable to all category of employees, and it depends on the wages earned and the designation of the employee.

Who is applicable for Labour welfare fund?

The Act is applicable to all the companies that have 5 or more persons employed. Includes all employee, including employee through contractor, except those working in the managerial or supervisory position and drawing wages more than Rs. 3,500/- per month.

Who is responsible for Labour welfare fund?

Both employee and employer are eligible to contribute towards the employee’s LWF (Labour welfare fund).

Is leave deducted from basic salary?

Accumulated leave can either be encashed during service or at the time of retirement or resignation. Any leave encashed during service is fully taxable and forms part of ‘income from Salary’. However, relief under Section 89 can be claimed (refer this circular).

What is LWP Fullform?

The full form of LWP is Leave Without Pay.

Who is responsible for making contribution to LWF?

States are also responsible for deciding contribution rate and frequency of LWF. The LWF contribution, periodicity and rules differs from state to state. Employees in the managerial capacity or supervisory capacity with wages above Rs. 1,600 per month are exempted.

How to calculate Labour Welfare Fund ( LWF )?

For states where LWF calculation is done ‘Half Yearly’, do we need to first sum 6 months gross earning and then match with the LWF earning range to determine the employee and employer contribution?

What is the salary limit for LWF in India?

The contribution to LWF fund by the employee is Rs. 6 for salary upto Rs. 3000 and Rs. 12 for salary above Rs. 3000. Employer contribution is double than that of the employee.

How to calculate Labour Welfare Fund in Haryana?

This is to inform you that rate of labour welfare fund contribution have been raised to Rs 10 in case of employee & Rs 20/- per month against employer’s contribution wef 01.04