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 Gujarat Labour Welfare Fund is a half-yearly levy under the Gujarat Labour Welfare Fund Act, 1953. Covered establishments deduct an indicative ₹6 per employee and add ₹12 as employer share (₹18 total) for each half-year ending 30 June and 31 December, depositing through the Gujarat Labour Welfare Board portal.
Overview
The Labour Welfare Fund (LWF) is a small statutory contribution that supports welfare schemes for workers — medical aid, education support, housing and recreation delivered by the state Board. Gujarat administers its Fund under the Gujarat Labour Welfare Fund Act, 1953 through the Gujarat Labour Welfare Board (GLWB). The amounts are modest, but each half-yearly deposit and return is a genuine compliance obligation.
Applicable Law and Authority
The governing statute is the Gujarat Labour Welfare Fund Act, 1953 and its Rules. It applies to factories and notified establishments in the state employing the prescribed minimum number of workers. The collecting authority is the Gujarat Labour Welfare Board, and contributions are paid through its online portal. The Act’s definition of “employee” governs who is counted, so verify inclusions and exclusions on the GLWB site.
Contribution Rates
Gujarat collects the LWF twice a year. The figures below are the amounts commonly applied and are indicative — confirm the current rate on the GLWB portal, as the Board revises them by notification.
| Party | Amount per worker (per half-year) |
|---|---|
| Employee contribution | ₹6 (indicative) |
| Employer contribution | ₹12 (indicative) |
| Total per worker per period | ₹18 (indicative) |
The employer share is twice the employee share, and both are deposited together against one challan for the half-year.
Worked Example
Consider a Ahmedabad-based textiles unit with 80 eligible workers on its register as on 30 June. It deducts ₹6 × 80 = ₹480 from workers and adds its own ₹12 × 80 = ₹960, depositing ₹1,440 by the July cut-off. The identical exercise is repeated on the 31 December position and deposited in January. The headcount on the relevant last-working-day fixes the amount.
Due Dates
Gujarat 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 | By 31 July (verify on portal) |
| Half-year ending 31 December | By 31 January (verify on portal) |
Because the Board can revise these dates, treat 31 July and 31 January as the working benchmark and confirm on the GLWB portal each cycle.
Process and Documents
Register the establishment on the GLWB portal, then for each half-year prepare the statement of eligible employees, generate the challan and pay online. Keep ready:
- Establishment registration / code with the GLWB.
- Employee register showing the headcount as on 30 June or 31 December.
- The generated challan and payment acknowledgement.
Preserve these records for inspection by the Labour Welfare authorities.
Penalties for Default
Late or non-payment can attract interest and penalty, with the unpaid amount recoverable as an arrear and possible prosecution under the Act. As the exact figures are updated over time, verify the current interest and penalty on the GLWB portal before relying on any specific number.