Your team may share one payroll, but they do not share one Labour Welfare Fund rule. A covered employee may contribute Rs. 6 every half-year in Gujarat, Rs. 50 annually in Karnataka, or a wage-linked monthly amount in Haryana. This calculator sorts out that state-by-state difference before you finalise payroll.
Choose the work state and covered headcount to see the employee deduction, employer share and annual planning figure. The guide then explains coverage checks, filing workflow and the official government or Welfare Board source behind every programmed rate. If a current general rate cannot be verified, the tool asks for manual review instead of guessing.
Choose a state and headcount for a quick employee deduction, employer contribution and annual planning estimate.
Choose the location to which the employee and establishment are mapped for LWF compliance.
Enter only employees already confirmed as covered. The tool does not decide eligibility.
Haryana uses 0.2% of monthly wages, subject to a cap. Run separate calculations for different wage bands.
Choose a state or Union Territory to see the rate model and filing note.
Select a state or Union Territory and enter the number of employees. For Haryana, also enter the monthly wage for that wage group.
Labour Welfare Fund at a glance
- Who administers LWF?
- A state Labour Welfare Board or Labour Department under state legislation.
- Is there one all-India rate?
- No. Contribution amounts, cycles, coverage tests, register dates and portals differ by jurisdiction.
- What does this tool need?
- The applicable work state and covered headcount. Haryana also needs the monthly wage for each wage group.
- What does the result include?
- The employee deduction, employer share, period total and annual planning amount where a current general numeric model is documented.
- What does it not decide?
- Establishment coverage, employee eligibility, exemptions, sector-specific welfare boards or the final challan workflow.
- Where should you verify?
- Use the official source linked in the result and the government-source directory near the end of this guide.
How to use this Labour Welfare Fund calculator
- Select the state or Union Territory in which the employee and establishment are mapped for labour-law compliance.
- Enter the number of employees already confirmed as covered for the selected contribution period.
- For Haryana, enter one monthly wage band at a time. The calculator applies 0.2% of wages and the current cap automatically.
- Review the employee deduction, employer contribution, amount to remit and annual planning estimate.
- Open the linked official portal or legal reference, validate coverage and exemptions, then generate the challan or return in the Board system.
Why there is no single all-India LWF rate
LWF is administered through state legislation and welfare boards. Some jurisdictions have a straightforward flat contribution for each covered employee. Haryana uses a wage-linked monthly amount with a cap. Chhattisgarh and Madhya Pradesh publish minimum employer contributions for each half-year. Kerala and some other locations can involve sector-specific welfare structures rather than a simple statewide payroll rate. Several states and Union Territories are intentionally routed to a manual review message in this calculator rather than being shown as zero.
That is the right compliance outcome. A result of zero from an unsupported state would be misleading. A payroll team needs to know whether the state has no general LWF model, whether the obligation belongs to a specific welfare board, or whether a current notice needs review. The Labour Welfare Fund calculator therefore gives a number only where a rate model is documented and a conservative manual-review message elsewhere.
State contribution rates used by the calculator
The table below shows the supported state models. Amounts are per covered employee unless stated otherwise. Government contributions shown by some Boards are not employer payroll contributions, so they are excluded from the amount to remit.
| State and official source | Employee share | Employer share | Cycle used | Key calculator note |
|---|---|---|---|---|
| Andhra Pradesh | Rs. 30 | Rs. 70 | Annual | Confirm the active Board filing date before payment. |
| Chhattisgarh | Rs. 15 | Rs. 45, subject to Rs. 1,500 half-yearly minimum | Half-yearly | The calculator applies the official employer minimum when needed. |
| Delhi | Rs. 0.75 | Rs. 2.25 | Half-yearly | A separate government share is excluded from the employer payment. |
| Goa | Rs. 10 | Rs. 30 | Half-yearly | Board guidance states 31 July and 31 January payment dates. |
| Gujarat | Rs. 6 | Rs. 12 | Half-yearly | Pay both shares before 15 July and 15 January after confirming coverage. |
| Haryana | 0.2% of monthly wages, maximum Rs. 35 | Twice employee share, maximum Rs. 70 | Monthly | The revised cap applies from 1 January 2026. Run each wage band separately. |
| Karnataka | Rs. 50 | Rs. 100 | Annual | The Board states payment between 1 January and 15 January. |
| Madhya Pradesh | Rs. 10 | Rs. 30, subject to Rs. 1,500 half-yearly minimum | Half-yearly | The calculator applies the employer minimum when needed. |
| Maharashtra | Rs. 25 | Rs. 75 | Half-yearly | Register date: 30 June or 31 December. Pay by 15 July or 15 January. |
| Odisha | Rs. 20 per year | Rs. 40 per year | Annual planning only | The official guide also lists January and July filing points. Confirm allocation before remittance. |
| Punjab | Rs. 5 | Rs. 20 | Accrues monthly | The principal Act provides annual remittance before 31 December. Confirm the current portal workflow. |
| Tamil Nadu | Rs. 20 | Rs. 40 | Annual | The State separately contributes to the Board and is not included here. |
| Telangana | Rs. 2 | Rs. 5 | Annual | Employees on the 31 December register are paid for by 31 January. |
| West Bengal | Rs. 3 | Rs. 30 | Half-yearly | Payment dates are 15 July and 15 January for the two half-years. |
Manual-review routing: Chandigarh, Kerala, and every other state or Union Territory without a numeric result need a live local review. The obligation may be absent, sector-specific, based on a distinct welfare board or subject to a newer notification. For example, Chandigarh has extensions of Punjab legislation, but this review did not locate an official current extension of Punjab’s 2014 contribution amendment. The calculator therefore does not assume Punjab’s present numeric rate for Chandigarh. Do not convert any manual-review message into a zero deduction in payroll.
Four useful Labour Welfare Fund calculator examples
Gujarat: 10 covered employees
For one half-year, the employee deduction is Rs. 6 x 10 = Rs. 60. The employer share is Rs. 12 x 10 = Rs. 120. The total payable through the Gujarat Board route is Rs. 180 for that contribution period. Open the Gujarat Labour Welfare Board portal to complete the live registration and payment steps.
Karnataka: 25 covered employees
The annual employee share is Rs. 50 x 25 = Rs. 1,250. The employer share is Rs. 100 x 25 = Rs. 2,500. The annual LWF amount is Rs. 3,750 before any portal-specific eligibility or filing validation.
Chhattisgarh: 10 covered employees
The employee share is Rs. 15 x 10 = Rs. 150 for the half-year. The normal employer calculation is Rs. 45 x 10 = Rs. 450, but the official Board page publishes a minimum employer contribution of Rs. 1,500 per half-year. The calculator therefore shows Rs. 1,650 for the period and Rs. 3,300 as the annual planning total.
Haryana: 20 employees at Rs. 10,000 per month
0.2% of Rs. 10,000 is Rs. 20, which is below the Rs. 35 monthly employee cap. The employee total is Rs. 400 each month and the employer total is Rs. 800. The amount to plan for that month is Rs. 1,200. If another group earns a different wage, calculate it separately because the cap can change the result.
Eligibility checks before you deduct LWF
Start with the statute and portal for the jurisdiction, not with a generic payroll setting. Common questions include whether the organisation is a factory, shop, commercial establishment, plantation, transport undertaking or another notified class; whether the establishment crosses a state-specific employee threshold; whether a worker is on the required register date; and whether a particular employee category is exempt.
For example, Madhya Pradesh publishes coverage guidance for factories and establishments with more than nine workers in the relevant period. Karnataka’s amendment published on 7 January 2026 changed the specified establishment threshold from more than 50 persons to 10 or more persons. Telangana covers factories, motor transport undertakings and specified establishments, including qualifying shops and other establishments that employ 20 or more persons. Odisha’s official Board page similarly identifies shops, commercial establishments, charitable trusts and registered societies employing 20 or more employees, alongside factories and motor transport undertakings.
These examples show why an India-wide guide cannot responsibly use one headcount rule for every state. Build the covered employee list first, keep the official source and approval evidence, and only then run the Labour Welfare Fund calculator.
Employer workflow: from payroll calculation to proof of payment
- Map each employee: assign the correct work state, establishment and employee category in the payroll master.
- Confirm coverage: review the state Act, current notification, thresholds and employer registration status.
- Freeze the covered list: use the register date specified by the state. Keep the employee list and payroll evidence with the working paper.
- Calculate both shares: deduct only the employee share that the law permits. The employer share is an employer cost and should not be recovered from wages.
- Pay through the correct portal: create the challan or return, pay both shares, and download the system-generated receipt.
- Reconcile and retain: reconcile the payroll deduction, employer expense, challan, return and receipt. Retain them with the compliance calendar.
How to configure LWF in a multi-state payroll
Set up LWF as a state rule, not as a company-wide flat deduction. The payroll record should contain the employee’s work state, the legal establishment or branch, the LWF coverage decision, the applicable employee rate, the employer rate, the contribution frequency and the next review date. For Haryana, add a wage-band rule that uses 0.2% of the selected monthly wage and then applies the statutory caps. For Chhattisgarh and Madhya Pradesh, build the employer minimum into the remittance control rather than spreading it silently across employee payslips.
It is also useful to separate three statuses in payroll: covered and calculated, not covered with documented reason, and awaiting legal review. The last category stops a rushed team from treating an incomplete state review as an automatic zero. When a new branch opens, a worker changes state, or a remote-work arrangement becomes permanent, re-run the state mapping before the next relevant contribution cycle.
The Labour Welfare Fund calculator gives the arithmetic for the first status. It should be paired with a short state rule sheet that records the source reviewed, the date reviewed, the person who approved the coverage position and the portal username or registration number. That simple evidence trail makes later payroll reconciliation much easier.
What to keep in the LWF compliance file
A clean filing trail is more useful than a screenshot of a successful payment. Keep the state registration certificate or portal acknowledgement, the covered-employee list as at the relevant register date, the payroll report that supports the employee deductions, the calculation working, the challan, payment receipt, submitted return or Form D where applicable, and a reconciliation to the general ledger. If the state permits an exemption or a category is excluded, retain the notification or advice that supports that conclusion.
For each payment, reconcile four numbers: employee deductions from payroll, employer LWF expense, the total shown on the challan, and the amount cleared by the bank. Differences can arise from joiners, leavers, register-date rules, rounding, a Chhattisgarh or Madhya Pradesh employer minimum, or a rate change. Resolve them before the next cycle rather than carrying an unexplained balance forward.
Keep the LWF calendar separate from central compliance calendars. PF and ESI are often handled monthly, while LWF can be annual or half-yearly. A state portal may also require a return, statement or worker list even when the payment value is small. The calculator’s annual planning figure helps budget the cost, but the period result is the number to reconcile to the actual challan.
What to do when an LWF rate or portal changes
State Boards can amend contribution caps, coverage thresholds, payment channels or portal steps. Haryana’s notification HLWB/REV/2026/3436 dated 8 May 2026 raised the employee cap from Rs. 34 to Rs. 35 per month with effect from 1 January 2026, while the employer remains liable for twice the employee amount. Karnataka’s 2026 published amendment changed the specified establishment threshold to 10 or more persons and introduced online payment wording. These are practical reasons not to copy a historic payroll setting indefinitely.
When an update is announced, identify its effective date first. Then determine whether payroll needs a prospective change, a catch-up calculation, or only a revised portal instruction. Test the revised formula with a small set of employees, including a wage value above the Haryana cap and workforces below the Chhattisgarh and Madhya Pradesh employer minimums. Finally, ask the payroll approver to sign off before the deduction reaches a payslip.
LWF versus professional tax, PF and ESI
| Item | Who administers it | How it is usually calculated | Why it should not be merged with LWF |
|---|---|---|---|
| Labour Welfare Fund | State welfare board or labour department | State-specific flat, wage-linked or periodic contribution | Rules, register dates and portals differ by jurisdiction. |
| Professional tax | State or local authority | Usually salary slab based | It is a separate levy with its own registration, return and payment cycle. |
| Provident Fund | EPFO | Central social-security contribution | PF is not a substitute for a state LWF obligation. |
| ESI | ESIC | Contribution based on applicable wages and coverage | ESI coverage and calculations are separate from welfare-board rules. |
Use ReconScribe’s separate Professional Tax Calculator for salary-slab professional tax estimates. Do not add professional tax, PF, ESI or LWF together before validating the rule that applies to each payroll component.
Official LWF portals and legal references
Use a Board, Labour Department or India Code source as the final authority for a payment. Each card below explains what the linked official page supports, so you can check the figure and the filing instruction rather than relying on an unattributed state-rate table.
Section 10 records Rs. 30 per employee and Rs. 70 per employer each year.
Publishes Rs. 15 employee, Rs. 45 employer and the Rs. 1,500 minimum employer amount per half-year.
Publishes the Rs. 0.75 employee and Rs. 2.25 employer half-year amounts.
Shows the current Rs. 10 employee and Rs. 30 employer half-year contributions and the January and July dates.
Use for current registration and payment. The India Code Act provides the half-year framework and January and July due dates.
Notification HLWB/REV/2026/3436 sets the Rs. 35 employee cap from 1 January 2026. The official Act text confirms the 0.2% formula and employer multiplier.
Publishes Rs. 50 employee, Rs. 100 employer and payment from 1 to 15 January. The 2026 published amendment records the 10-person threshold change.
Publishes Rs. 10 employee, Rs. 30 employer, the Rs. 1,500 minimum and January and July dates.
Records Rs. 25 employee, three times that amount from the employer, and payment by 15 January and 15 July.
Publishes annual Rs. 20 and Rs. 40 amounts and January and July register-linked filing points. The calculator therefore labels Odisha as planning-only.
Changes the monthly employee and employer amounts to Rs. 5 and Rs. 20. The principal Act provides the annual remittance framework.
Records Rs. 20 employee, Rs. 40 employer and a separate Rs. 20 government contribution each year.
Section 10 records Rs. 2 employee and Rs. 5 employer each year. The official Rules provide the 31 January payment timing.
Publishes the current Rs. 3 employee and Rs. 30 employer shares and the January and July deadlines.
Frequently asked questions
Is there one Labour Welfare Fund rate for all India?
No. LWF is state-administered. The rate, cycle, coverage test, register date and portal can change by state. That is why this Labour Welfare Fund calculator asks for the applicable state or Union Territory first.
Does an unsupported state mean no LWF is payable?
No. It means this calculator does not have a current general numeric model for that jurisdiction. The obligation could be absent, sector-specific or require current Board confirmation. Complete a local review before treating the amount as zero.
Can an employer recover its LWF contribution from employees?
No. The employer may recover only the employee contribution where the governing law permits it. The employer contribution remains an employer liability, even when it appears in a broader cost-to-company view.
Which state should a remote employee use?
Use the state that is legally relevant to the employee’s work location and establishment registration after reviewing the applicable law and the employer’s registration. Do not select a state merely because the head office is there.
How does the Haryana calculation work?
The employee amount is 0.2% of monthly salary, wages or remuneration, limited to Rs. 35 per month. The employer adds twice that amount, limited to Rs. 70. Calculate each wage band separately when wages differ.
Why is the employer amount higher for a small Chhattisgarh or Madhya Pradesh group?
Both official contribution pages publish a minimum employer contribution of Rs. 1,500 per half-year. The calculator applies that minimum where the normal per-employee employer amount is lower. It does not increase the employee deduction.
Why is the Odisha result marked planning-only?
The Odisha Labour Directorate publishes annual employee and employer amounts but also identifies January and July filing points tied to two register dates. The calculator shows the annual statutory amount and tells you to confirm the current Board allocation before using it as a challan figure.
How current are the rates in this calculator?
The state models and linked official sources were reviewed on 9 August 2026. A filing team should still reopen the linked Board, Labour Department or India Code source before each due date because notifications and portal instructions can change after the review date.
Does this Labour Welfare Fund calculator file the challan or return?
No. It estimates the contribution. Registration, challan generation, online payment, return filing and receipt download happen in the relevant state portal.
Should LWF be combined with professional tax in payroll?
Keep them as separate payroll components. Professional tax is a different state levy. Use the Professional Tax Calculator for that separate calculation.
Compliance disclaimer: This all-India Labour Welfare Fund calculator is an educational payroll-planning tool, not legal or tax advice. State notifications, exemptions, coverage thresholds, portal workflows and due dates can change. Review the current official Board or Labour Department source and take professional advice for a filing decision.