What is the Labour Welfare Fund (LWF) in India?

LWF is a state-level statutory contribution made by both employers and employees for the welfare of workers. It is not a central law — each state has its own Act.

How many states have LWF applicable?

As of March 2026, 14 states have active LWF Acts: Andhra Pradesh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, and West Bengal.

What is the difference between LWF and Professional Tax?

Professional Tax is a tax on the employee's income levied under Article 276, with proceeds going to state revenue. LWF is a welfare fund contribution (not a tax) made by both employer and employee — it is not a tax on income.

Labour Welfare Fund (LWF) Applicability Checker 2026

Based on state-wise LWF Acts, check whether your establishment is required to make LWF contributions.

LWF Applicability Check Tool

Instant determination based on state-specific LWF Acts.

State / Union Territory ✓ = LWF Act Applicable, ✕ = Not Applicable

Total Number of Employees

Establishment Type

Based on state LWF Acts as of March 2026

States with Active LWF Acts (14)

Establishments registered in these states may be required to make LWF contributions.

Andhra Pradesh Applicable Chhattisgarh Applicable Delhi Applicable Goa Applicable Gujarat Applicable Haryana Applicable Karnataka Applicable Madhya Pradesh Applicable Maharashtra Applicable Odisha Applicable Punjab Applicable Tamil Nadu Applicable Telangana Applicable West Bengal Applicable

Major States Without an Active LWF Act

Establishments in these states are not subject to a state LWF Act. Central labour laws (EPF, ESI, Gratuity) continue to apply.

Bihar Not Applicable Himachal Pradesh Not Applicable Jharkhand Not Applicable Kerala Not Applicable Rajasthan Not Applicable Uttar Pradesh Not Applicable Uttarakhand Not Applicable

Understanding the Labour Welfare Fund (LWF)

LWF is a state-level statutory labour compliance in India. Unlike Professional Tax, EPF, ESI, and Gratuity (which are pan-India), LWF varies state by state. 14 states have enacted active LWF Acts, while others have not yet done so.

LWF vs Professional Tax: Key Difference

Professional Tax is a tax on the employee's income under Article 276 that goes to state revenue. LWF is a welfare fund contribution (not a tax) made by both employer and employee, managed by the Labour Welfare Board.

Official References

Comprehensive Guide to LWF in India

An in-depth review of state-wise LWF Acts, contribution structures, compliance obligations, and common misconceptions.

Read LWF Guide →