Labour Welfare Fund (LWF) in Odisha (Updated: Aug 2025)

The Labour Welfare Fund (LWF) is a crucial welfare initiative across Indian states, designed to support the social, educational, and economic upliftment of workers. In Odisha, the initiative is governed by the Odisha Labour Welfare Fund Act, 1996, and administered through the Odisha Labour Welfare Fund Rules, 2015.

Employers in Odisha must understand their obligations under this Act to ensure smooth and timely compliance. Here’s a complete overview of the contribution requirements and key deadlines.

What Is the Labour Welfare Fund?

The Labour Welfare Fund is a statutory mechanism through which contributions are collected from both employees and employers. The funds are used by the state welfare board to offer programs such as:

• Medical support and insurance
• Educational assistance and scholarships
• Housing and sanitation schemes
• Recreational and training facilities
• Emergency relief for workers and their families

Applicability of LWF in Odisha

The provisions of the LWF in Odisha are applicable to:

• Any employer or establishment employing twenty (20) or more employees at any point.

Exemptions:

The following employee categories are not covered under the contribution rule:

• Those in managerial or supervisory roles
• Apprentices
• Workers employed on a part-time basis

This ensures the fund primarily benefits full-time, wage-earning employees in need of welfare support.

Contribution Breakdown and Timeline

The LWF in Odisha requires contributions to be made twice a year (half-yearly), shared between employers and employees.

Period	Employee Contribution	Employer Contribution	Total Contribution	Date of Deduction	Last Date for Submission
January – June	₹10.00	₹20.00	₹30.00	30th June	15th July
July – December	₹10.00	₹20.00	₹30.00	31st December	15th January

Employers must deduct the contribution amount from eligible employees’ wages in June and December and remit the combined contributions to the Labour Welfare Board before the respective deadlines.

Compliance & Filing Process

Form Required:

• Form F.docx – This form must be filled and submitted as part of the half-yearly filing process.

Official Website:

• Odisha Labour Directorate

Employers are encouraged to keep records of payment, Form F submission, and employee registers for audit or verification by authorities.

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Welfare Programs Offered by Odisha Labour Welfare Board

The funds collected are used to provide a wide range of services and welfare schemes such as:

• Subsidized healthcare
• Skill development and vocational training
• Educational grants for workers’ children
• Construction of night shelters and restrooms for labourers
• Assistance during medical emergencies and natural disasters

These efforts contribute to a stronger and more secure workforce.

Consequences of Non-Compliance

Delayed or non-submission of LWF contributions can result in:

• Penalties and fines
• Legal action under the applicable Act
• Restrictions or issues in license renewals and labour inspections

To avoid such issues, employers should plan deduction schedules in advance and submit contributions within the prescribed deadlines.

Need Help Managing LWF Compliance in Odisha?

We offer professional compliance support for businesses operating in Odisha. Our services include:

• Contribution calculations
• Form F preparation and submission
• Deadline reminders
• Audit-ready documentation and reports

Contact us today to ensure hassle-free and penalty-free compliance for your Odisha LWF obligations.