Who needs to comply with the Kerala Labour Welfare Fund (LWF)?

Who needs to comply with the Kerala Labour Welfare Fund (LWF)

Kerala Labour Welfare Fund Board is a statutory body commenced functioning on I st May 1977 with a view to constitute a Fund for promoting the welfare of labour. The Board collects contributions from the employees and employers of the establishments and other statutory revenues under the Kerala Labour Welfare Fund Act.1975. It is applicable to all factories covered under the Factories Act 1948, Plantations covered under the Plantation Labour Act 1951, and establishments as defined in section 2(f)(v) of the Kerala Labour Welfare Fund Act 1975. As a prominent pioneer in the arena of Labour Welfare, the board offers a variety of benefits to its workers who are paying a contribution to this fund.

Kerala Labour Welfare Fund Board came into existence vide G.O. Ms.NO.26/77/LBR dated 01.05.1977as SRO 372/77. Based on the Kerala Labour Welfare Fund Act 1975, the Board has formulated diverse benefits which suit the requirement of the Labour community in the State.

Every employee contributes Rs.45/- per half year and every employer in respect of such employee, contributes Rs.45/- per half year to the Fund. Every employer should pay to the Fund both the employer’s contribution and the employee’s contribution before the 15th day of July and the 15th day of January of every year. Labour Welfare Fund Inspectors are entrusted to collect the contribution amount through district offices.

The money in the Fund can be utilised by the Board to promote the welfare of employees and their dependents on the Following activities,

  • Community and social education centres including reading rooms and libraries.
  • Games and sports
  • Vocational training
  • Community necessities
  • Entertainment and other forms of recreation
  • Convalescent homes for tuberculosis patients
  • Holiday homes in health resorts.
  • Part-time employment for housewives of employees
  • Pre-schools
  • Higher education.
  • Nutritious food to children of employees.
  • Employment opportunities to the disabled employees.
  • Cost of administering this Act including the salaries and allowances of the staff appointed for the purpose of this Act.
  • Such other objectives, in the opinion of the Government, improve the standard of living and ameliorate the social condition of labour.

How Does Labour Welfare Fund Help Workers?

The Labour Welfare Fund (LWF) is managed by the Labour Board which provides a number of welfare schemes for workers. The schemes provide support in three broad areas as follows.

Improving Standard of Living

  • Providing nutritious food, educational facilities, and scholarships to the children of employees
  • medical facilities to the private and public sector workers and their families
  • housing facilities at concessional schemes and rates

Offering Better Work Conditions

Furnishing facilities for workers and employees such as commuting to work (transport), reading rooms, libraries, vocational training programs, excursions and tours, recreational facilities at the workplace, etc.

Providing Social Security

Arranging medical treatments, schemes for certain industries and subsidiary occupations for women, unemployed persons, etc.

The amount of fund, rate, and periodicity of contribution is decided by the respective State Labour Welfare Board. The contribution may be made every month or once in six months (half-yearly) or once in a year (annually) as per the prescribed quantum and remitted to the appropriate Labor Welfare Fund Board in prescribed Form before the due date specified under the Act.

Currently, this Act is enacted and applicable in the States of Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana & West Bengal.

Labour Welfare Fund Benefits For Employers

  • Refined Industrial Relations
  • Improvement in work efficiency
  • Elevated Morale
  • Improved Mental and Moral Health
  • Better Outlook of Employers
  • Social Benefits


1.Is labour welfare fund compulsory in Kerala?

All employees under the purview of the Kerala Labour Welfare Fund Act, 1975. For Shops & Establishments under the purview of The Kerala Shops And Commercial Establishments Workers Welfare Fund Act,2006,Employee and Employer has to contribute ₹ 20 each, every month by 30 th and the due date is 5 th of every month.

2.Is the labour welfare fund deducted every month?

LWF deduction is monthly, however the due date is 31 Jan of every year. Payment can be done monthly too.

3.Which employees are eligible for LWF?

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

4.Who is not eligible for LWF?

LWF is not applicable to those working in the managerial or supervisory position and drawing wages more than Rs. 3,500/- per month. LWF is to be deposited in the months of June and December only.

5.Why is LWF deducted from salary?

It is a deduction made from the employee’s wages as well as from the employer. The purpose of this fund is to provide housing, medical care, education and recreational facilities to employees and their families. As an administrator, you can view, add, edit or delete the LWF details in the LWF page.