Labour Welfare Fund (LWF) in Madhya Pradesh (Updated: Aug 2025)

Ensuring the well-being of workers is a shared responsibility between employers and the government. One key initiative that supports this mission is the Labour Welfare Fund (LWF). In Madhya Pradesh, the LWF is governed by The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982, and administered through the Rules of 1984.

This guide provides a comprehensive overview of LWF compliance in Madhya Pradesh, helping businesses understand their obligations and stay aligned with statutory norms.

What Is the Labour Welfare Fund?

The Labour Welfare Fund is a statutory fund that collects contributions from employers and employees. These funds are allocated to welfare programs that enhance the quality of life and socio-economic security of workers. The initiatives supported include:

• Medical assistance
• Education for children of workers
• Housing aid
• Maternity benefits
• Recreational and cultural services

Applicability of LWF in Madhya Pradesh

The LWF provisions apply to:

• All establishments employing one or more workers, irrespective of the nature of the industry or scale of operations.

Exemptions:

Employees are not covered if they:

• Work in managerial or supervisory roles
• Earn a monthly wage exceeding ₹10,000

This ensures that the fund is targeted toward the working class in need of social protection.

Contribution Structure and Timeline

In Madhya Pradesh, LWF contributions are collected half-yearly. Both employees and employers must contribute as per the fixed rates.

Period	Employee Contribution	Employer Contribution	Total Contribution	Date of Deduction	Last Date for Submission
January – June	₹10.00	₹30.00	₹40.00	30th June	15th July
July – December	₹10.00	₹30.00	₹40.00	31st December	15th January

Employers are responsible for deducting the contribution from employees’ salaries and depositing the combined amount to the Madhya Pradesh Labour Welfare Board within the prescribed due dates.

Filing Process

Form Required:

• Form A.docx – To be completed and submitted along with the contribution

Official Website:

• MP Labour Welfare Board Portal

Employers are advised to retain copies of submitted forms and payment receipts for audit and verification purposes.

• Group Personal Accident Insurance in India – A Complete HR Guide
• 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

Benefits Offered by the LWF in Madhya Pradesh

The Madhya Pradesh Labour Welfare Board implements a range of welfare schemes, including:

• Subsidized healthcare and medicines
• Financial aid for marriage of workers’ children
• Educational scholarships
• Construction of rest houses and night shelters
• Skill enhancement programs

These benefits go a long way in improving the living conditions and financial resilience of the workforce.

Penalties for Non-Compliance

Failure to contribute to the Labour Welfare Fund can attract:

• Monetary fines
• Legal action under the Adhiniyam
• Inspection or audit-related consequences

To stay compliant, employers should establish clear payroll processes that include automatic deduction, contribution calculation, and timely submission.

Need Help with LWF Filing in Madhya Pradesh?

If you’re managing compliance for one or more establishments in Madhya Pradesh, our team can support you with:

• Monthly and half-yearly payroll deduction setup
• Accurate LWF contribution calculations
• Form A preparation and filing assistance
• Tracking submission deadlines across periods

Contact us today for reliable and timely Labour Welfare Fund compliance support.