Labour Welfare Fund explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Delhi Labour Welfare Fund is a half-yearly levy under the Bombay Labour Welfare Fund Act, 1953 as extended to Delhi. Covered establishments deduct an indicative ₹0.75 per employee and add ₹2.25 as employer share (₹3 total) for each half-year ending 30 June and 31 December, depositing through the Delhi Labour Welfare Board portal.
Overview
The Labour Welfare Fund (LWF) is a small statutory contribution used to finance welfare activities for workers — medical aid, education support and recreation run by the state Board. In the National Capital Territory it is administered by the Delhi Labour Welfare Board (DLWB) under the Bombay Labour Welfare Fund Act, 1953 as extended to Delhi. The amounts are tiny, but the half-yearly return remains a real compliance requirement.
Applicable Law and Authority
The governing statute is the Bombay Labour Welfare Fund Act, 1953 in its extension to Delhi, read with the applicable Rules. It applies to establishments in Delhi employing the prescribed minimum number of workers. The collecting authority is the Delhi Labour Welfare Board, and contributions are paid through its portal. The Act’s definition of “employee” governs who is counted, so verify inclusions and exclusions on the DLWB site.
Contribution Rates
Delhi collects the LWF twice a year. The figures below are the amounts commonly applied and are indicative — confirm the current rate on the DLWB portal, as they are revised by notification.
| Party | Amount per worker (per half-year) |
|---|---|
| Employee contribution | ₹0.75 (indicative) |
| Employer contribution | ₹2.25 (indicative) |
| Total per worker per period | ₹3 (indicative) |
The employer share is three times the employee share, and both are deposited together against one challan for the half-year.
Worked Example
Take a Delhi services firm with 60 eligible workers on its register as on 30 June. It deducts ₹0.75 × 60 = ₹45 from workers and adds its own ₹2.25 × 60 = ₹135, depositing ₹180 for the half-year. The identical exercise is repeated on the 31 December position. Even though the sums are small, the return still has to be filed for each period.
Due Dates
Delhi reckons the LWF on two dates and requires two deposits a year:
| Period / cut-off date | Deposit and return due |
|---|---|
| Half-year ending 30 June | Following month (verify on portal) |
| Half-year ending 31 December | Following month (verify on portal) |
Because the exact cut-off can be revised, confirm the current due dates on the DLWB portal each cycle rather than assuming a fixed date.
Process and Documents
Register the establishment with the DLWB, then for each half-year prepare the statement of eligible employees, generate the challan and pay. Keep ready:
- Establishment registration / code with the DLWB.
- Employee register showing the headcount as on 30 June or 31 December.
- The generated challan and payment acknowledgement.
Retain these records for inspection by the Labour Welfare authorities.
Penalties for Default
Non-payment or late payment can attract interest and penalty, with the unpaid amount recoverable as an arrear and possible prosecution under the Act. As the specific figures are periodically revised, verify the current interest and penalty on the DLWB portal before relying on any number.