Introduction
Labour welfare is a crucial aspect of any working environment.
The Haryana Labour Welfare Board has taken another step toward employee well-being by revising the Labour Welfare Fund (LWF) contribution rates.
These changes, effective from 1st January 2025, were officially announced through a notification on 7th March 2025.
If you are an employer or an employee in Haryana, this update directly impacts you.
Let’s break it down in simple terms so that you understand exactly what has changed and how it affects you.
What is the Labour Welfare Fund (LWF)?
Before diving into the new rates, let’s quickly understand the purpose of the Labour Welfare Fund (LWF).
The LWF is designed to improve the working conditions, social security, and overall welfare of employees.
This fund supports various initiatives, including health care, education, housing, and skill development for workers.
Both employers and employees contribute to this fund, ensuring its sustainability and effectiveness.
Revised LWF Contribution Rates
With effect from 1st January 2025, the Labour Welfare Fund contributions have been revised as follows:
- Employee’s Contribution: Employees will contribute 0.2% of their monthly salary, wages, or remuneration, with a maximum cap of ₹34 per month.
- Employer’s Contribution: Employers are required to contribute double the amount paid by employees, which equals ₹68 per month per employee.
- Total Contribution: The total monthly contribution (Employee + Employer) will be ₹102 per employee.
How Does This Impact Employees and Employers?
For Employees:
- A slight increase in deductions from the monthly salary (capped at ₹34) will contribute to improved welfare benefits.
- The contributions will support better infrastructure and facilities, leading to enhanced workplace benefits over time.
- Employees should check their salary slips to ensure accurate deductions.
For Employers:
- Employers will now need to contribute ₹68 per month per employee, which is double the employee’s contribution.
- Ensuring timely deposits of LWF contributions will help avoid penalties and maintain compliance with state labour laws.
- Businesses must update their payroll systems to reflect these changes from January 2025 onward.
Why This Change Matters
The revision of the LWF rates aligns with the state’s commitment to improving employee welfare. The fund is instrumental in providing financial support for workers in various ways, such as:
- Skill development programs to enhance career growth.
- Medical and health benefits for employees and their families.
- Education assistance for employees’ children.
- Financial aid during times of crisis.
While the increased contribution is relatively small, the collective impact on the workforce will be significant in the long run.
What Should You Do Next?
Whether you are an employer or an employee, here’s what you should do to stay informed and compliant:
- Employers: Ensure payroll teams are updated on the new LWF rates and implement the changes in salary processing.
- Employees: Stay aware of deductions and understand the benefits of LWF contributions.
- HR & Payroll Teams: Maintain accurate records of contributions and ensure timely payments to avoid penalties.
- Seek Clarifications: If you have any doubts or concerns, reach out to us.
While change can sometimes feel like a burden, it is important to recognize the long-term benefits that come with welfare initiatives.
The revised LWF contributions ensure better working conditions and support for employees while maintaining fair employer participation.
If you have any further queries or require assistance, do not hesitate to reach out to our expert team.
Stay informed, stay compliant, and contribute towards a better workplace!
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The Official Notification