🚫 Indian States & Union Territories Without Labour Welfare Fund (LWF)

Labour Welfare Fund (LWF) is a statutory contribution by employers and employees in various Indian states to support worker-centric initiatives like housing, healthcare, and education. However, LWF applicability varies widely across India, and many states and union territories have not implemented LWF schemes at all.

In this blog, we’ll explore which Indian states and UTs do not require LWF contributions, helping HR professionals, payroll managers, and compliance officers maintain accurate payroll records and avoid unnecessary deductions.

📍 Indian States & UTs Without Labour Welfare Fund (LWF)

The following table outlines all the states and UTs where Labour Welfare Fund is NOT applicable as of FY 2024–25:

🏛️ State / UT	📝 LWF Applicability
Andaman and Nicobar Islands	❌ Not Applicable
Arunachal Pradesh	❌ Not Applicable
Assam	❌ Not Applicable
Bihar	❌ Not Applicable
Dadra and Nagar Haveli	❌ Not Applicable
Daman and Diu	❌ Not Applicable
Himachal Pradesh	❌ Not Applicable
Jammu and Kashmir	❌ Not Applicable
Jharkhand	❌ Not Applicable
Ladakh	❌ Not Applicable
Lakshadweep	❌ Not Applicable
Manipur	❌ Not Applicable
Meghalaya	❌ Not Applicable
Mizoram	❌ Not Applicable
Nagaland	❌ Not Applicable
Puducherry	❌ Not Applicable
Rajasthan	❌ Not Applicable
Sikkim	❌ Not Applicable
Tripura	❌ Not Applicable
Uttar Pradesh	❌ Not Applicable
Uttarakhand	❌ Not Applicable

🔍 Why Labour Welfare Fund Is Not Implemented in These Regions?

Here are a few possible reasons why LWF remains non-applicable in certain states and union territories:

• Legislative Choice: States have the discretion to enact or abstain from implementing LWF Acts.
• Workforce Structure: Some regions have a lower industrial or organized workforce presence.
• Administrative Simplicity: Smaller UTs avoid the complexity of managing LWF schemes.
• Alternative Welfare Mechanisms: Other forms of social schemes may be prioritized.

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💼 HR Compliance Tip for Employers

If your organization operates in multiple states, it’s important to:

• Refer to state-specific LWF acts and notifications.
• Avoid unnecessary LWF deductions in non-applicable states listed above.
• Update your payroll software and statutory compliance calendars accordingly.

Using this verified list, HR teams can ensure accurate payroll deductions and statutory filings, especially for year-end audits and returns.

✅ Conclusion: Know Where Labour Welfare Fund Is Not Mandatory

Understanding where Labour Welfare Fund is applicable vs. non-applicable is essential for maintaining clean statutory compliance across India. This blog provides an updated reference till further notification from the respective state authority, especially useful for companies with a PAN India presence.

For payroll teams, avoiding misapplication of LWF in non-applicable regions helps maintain employee trust and prevents financial discrepancies. Stay tuned to government notifications for any updates in individual state policies.

📌 Bookmark this page as your go-to reference for LWF applicability across India.