The Labour Welfare Fund (LWF) is a vital compliance requirement aimed at enhancing the social and economic well-being of workers. In Gujarat, this initiative is governed by The Gujarat Labour Welfare Fund Act, 1953, and enforced through the Labour Welfare Fund (Gujarat) Rules, 1962.
This blog explains the key aspects of LWF applicability, contribution structure, and compliance timelines specific to Gujarat.
For any assistance in
HRMS, Payroll & Compliance Outsourcing, Tax Management or S&E Registration, do contact us.
We provide PAN India service.
Click here to get the Lowest QuotesWhat Is the Labour Welfare Fund?
The Labour Welfare Fund is a statutory fund built through contributions from both employers and employees. The collected fund is used to provide a wide range of benefits to workers such as housing assistance, medical care, educational support, and skill development programs.
Applicability of LWF in Gujarat
In Gujarat, the Labour Welfare Fund is applicable to:
- All establishments employing 10 or more employees/persons at any time.
Exemptions:
The following employees are not required to contribute:
- Those employed in managerial or supervisory positions
- Employees earning a monthly wage exceeding ₹3,500
Contribution Structure
The contribution to the Gujarat Labour Welfare Fund is collected twice a year (half-yearly) from both employees and employers.
| Period | Employee Contribution | Employer Contribution | Total Contribution | Date of Deduction | Last Date for Submission |
| January – June | ₹6.00 | ₹12.00 | ₹18.00 | 30th June | 15th July |
| July – December | ₹6.00 | ₹12.00 | ₹18.00 | 31st December | 15th January |
These contributions must be deducted from eligible employees’ wages and remitted to the Labour Welfare Board within the prescribed time.
Filing Process
Form Required:
- FORM A-1.docx
Official Website:
Employers must ensure proper documentation and timely submission of contributions through the designated channels available on the portal.
- Abhijit Bhaduri: The Story of an HR Who Became a Unicorn
- EPFO Mandates Employers to Public Display of Form 5A: (by Oct 22, 2025)
- EPFO Revamped ECR Rollout (Effective Sept 2025 Payroll)
- Prabir Jha: The Maverick CHRO Across Fortune 500 Giants
- Corporate Group Health Insurance in India: Benefits + Buyers
How LWF Benefits Workers
The Gujarat Labour Welfare Board utilizes the fund to offer a broad spectrum of welfare initiatives, such as:
- Health check-ups and treatment reimbursements
- Financial support for children’s education
- Housing and sanitation projects
- Skill-building workshops and vocational training
- Aid during natural calamities or emergencies
These benefits aim to uplift workers’ living standards and foster a positive work environment.
Penalties for Non-Compliance
Failure to comply with the LWF requirements may lead to:
- Financial penalties
- Legal proceedings initiated by labour authorities
- Inspections or audits from the Labour Department
Maintaining accurate records and ensuring timely deductions/submissions is crucial to avoid such consequences.
Let Us Help You Stay Compliant
Managing state-wise statutory contributions like the LWF can be overwhelming. Our team can help you calculate contributions, fill out the necessary forms, and file within deadlines—ensuring complete peace of mind.
Contact us today for end-to-end Labour Welfare Fund compliance services in Gujarat.
For any assistance in
HRMS, Payroll & Compliance Outsourcing, Tax Management or S&E Registration, do contact us.
We provide PAN India service.
Click here to get the Lowest Quotes
