Haryana Labour Welfare Fund Contribution
The Haryana labour welfare fund is a small monthly contribution from employees, matched twice over by the employer. From 1 January 2026, the employee pays 0.2% of wages up to ₹35 a month and the employer pays double, up to ₹70. The yearly deadline to deposit is 31 December.
What it is
The Labour Welfare Fund (LWF) pays for welfare schemes for workers in Haryana. Employers deduct a small amount from each employee’s wages, add their own share, and deposit the total with the Haryana Labour Welfare Board.
The law is the Punjab Labour Welfare Fund Act, 1965, as it applies in Haryana, with coverage widened by a Haryana amendment in 2019. Section 9A sets the contribution: each employee pays 0.2% of salary or wages every month, subject to a ceiling, and the employer pays twice the employee’s amount. The Board revises the ceiling, and the current figures apply from 1 January 2026. Deposits and worker registrations run through the Labour Department’s portal at hrylabour.gov.in.
Who it applies to
Count every factory and bus service
Under Section 2(4) of the Act, every factory and every motor omnibus service is an establishment. Their employees contribute, and the employer adds its share.
Check shops at ten employees
The 2019 Haryana amendment brought in shops and commercial establishments under the Punjab Shops and Commercial Establishments Act, 1958 where ten or more employees work. If your shop and establishment registration shows ten or more staff, LWF follows.
Watch the twenty mark for trusts and societies
Any other business, society, trust or charity is covered if it employed more than twenty persons on any working day in the preceding twelve months. A trust running a school in Ballabgarh with 25 staff on its rolls is covered.
Why it matters
Deduct it like PF and ESI
Section 9A makes the contribution compulsory for covered establishments. Treat it as a payroll deduction, not a December afterthought.
Include your contract workers
Since 2019, an “employee” includes a person employed directly or through any agency, including a contractor. Your contribution list must cover contract staff, the same people you track for your contract labour licence.
Give workers access to welfare schemes
Contributing workers can register with the Board and apply online for its welfare schemes. The Board’s service time for each scheme is 90 days.
Contribution at a glance
| Rate | Monthly ceiling from 1 January 2026 | |
|---|---|---|
| Employee | 0.2% of salary or wages | ₹35 |
| Employer | Twice the employee’s amount | ₹70 |
| Total per employee | — | ₹105 |
The ceiling was ₹34 for the employee and ₹68 for the employer in 2025. The Haryana Labour Welfare Board raised it by notification No. HLWB/REV/2026/3436 dated 8 May 2026, with effect from 1 January 2026.
The maths is simple. An employee earning ₹15,000 a month pays 0.2%, which is ₹30, and the employer pays ₹60. An employee earning ₹25,000 would owe ₹50 at 0.2%, but the ceiling stops it at ₹35, so the employer pays ₹70. The ceiling bites once monthly wages cross ₹17,500.
Documents required
From the employer
- Establishment name, address and registration details
- PAN of the business
- Login on hrylabour.gov.in
- Contact person and email for the portal
For each deposit
- Month-wise list of employees, including contract staff
- Wages paid to each employee
- Employee and employer contribution worked out
For worker registration
- PPP ID (Parivar Pehchan Patra)
- Aadhaar card
- Passport-size photo
How it works
Check whether the Act covers you
We check whether your unit is an establishment under Section 2(4): a factory, a bus service, a shop with ten or more employees, or another body with more than twenty. Here is the catch: headcount moves. Think of a Faridabad showroom that goes from eight to twelve staff for the festive season. Once ten or more work there, it is in.
Build the deduction into payroll
We add the LWF deduction to your payroll compliance set-up: 0.2% of wages, capped at ₹35, with the employer’s double share booked as a cost.
Deposit online, monthly or yearly
We deposit the contribution online on hrylabour.gov.in. Since a Board notification of 9 July 2024 you may pay monthly, or you can pay the year’s amount by 31 December.
File the challans and workings
We keep the challans and employee-wise working on file, ready for an inspection or a worker’s welfare claim. In practice, a Faridabad garment unit with tailors on its own rolls and more through a contractor needs both lists in the working, or the deposit falls short.
Timelines
Deduct from each month’s wages
Section 9A works month by month: the employee’s 0.2% is deducted from each month’s wages, and the employer’s double share accrues with it.
Deposit the year’s total by 31 December
The last date to deposit contributions for the year is 31 December, as the Act and the Labour Department’s FAQ both state.
Pay monthly if you prefer
The Board’s notification of 9 July 2024 allows deposits on the online portal every month, much like PF and ESI. It is an option, not a requirement.
What happens if you miss the deposit
Pay 12% interest on late amounts
The Labour Department’s FAQ says contributions not deposited in time attract interest at 12% per annum on the amount due.
Face a fine of up to ₹5,000
Section 26A provides a fine of not less than ₹2,000, which may extend to ₹5,000.
Risk prison for repeat defaults
For a second or later offence, Section 26A allows imprisonment up to three months, or a fine of ₹3,000 to ₹10,000, or both.
Frequently asked questions
What is the Haryana labour welfare fund contribution for 2026?
From 1 January 2026, the employee pays 0.2% of monthly wages, capped at ₹35, and the employer pays twice that, capped at ₹70. The Haryana Labour Welfare Board set these limits by notification dated 8 May 2026, up from ₹34 and ₹68 in 2025. So the most you deposit for one employee is ₹105 a month. We update your payroll the day a new ceiling is notified.
Which law governs LWF in Haryana?
The Punjab Labour Welfare Fund Act, 1965 governs it, as it applies in Haryana. Section 9A sets the employee’s 0.2% and the employer’s double share, and a 2019 Haryana amendment widened coverage to shops and contract workers. The Haryana Labour Welfare Board runs the fund. If you have units in other states, each state has its own LWF rules, and we can map them for you.
Is my shop or office covered?
Yes, if ten or more employees work there. The 2019 Haryana amendment added shops and commercial establishments under the Punjab Shops and Commercial Establishments Act, 1958 with ten or more employees. Factories and motor bus services are covered as establishments in their own right, and other bodies such as societies and trusts once they employ more than twenty. We confirm your status before you start deducting.
Do contract workers need LWF deductions?
Yes. Since the 2019 amendment, an employee includes anyone employed directly or through any agency, including a contractor, whether or not the principal employer knows of it. So contract labour working in your establishment falls within the Act. We help you get the contractor’s worker list and wage data, so the contribution is complete.
What is the due date for depositing LWF in Haryana?
The last date is 31 December each year. Since a Board notification of 9 July 2024, employers may also deposit on the online portal every month, but that is optional. Monthly payment keeps payroll and challans in step. We can run either schedule for you, and we never leave the deposit to the last week of December.
What if I pay LWF late?
Interest at 12% per annum is charged on the amount due if you miss the deadline, according to the Haryana Labour Department’s FAQ. Separately, Section 26A of the Act provides a fine of ₹2,000 to ₹5,000 for a first offence. If you have missed past years, we work out the dues with interest and help you clear them in one go.
The 2026 rate came out in May. What about January to April?
The new ceiling applies from 1 January 2026, though the notification is dated 8 May 2026. If you deducted at the old ₹34 and ₹68 for January to April, the shortfall of ₹1 per employee per month, and ₹2 for the employer, should be made up. We square off these small amounts so your records match the notified rate.
How do workers benefit from the fund?
Contributing workers register with the Haryana Labour Welfare Board and then apply online for its welfare schemes as per eligibility. Registration is on hrylabour.gov.in or at a CSC centre, with PPP ID, Aadhaar and a passport-size photo. The Board’s service time for each scheme is 90 days. We brief your HR team on it, so staff know what they can claim.
Is Haryana LWF the same as PF or ESI?
No. PF and ESI are central schemes with their own registrations, while the Haryana labour welfare fund is a state levy under the Punjab Labour Welfare Fund Act, 1965. The amounts are also far smaller: at most ₹35 from the employee and ₹70 from the employer each month. All three sit in the same payroll run, and we handle them together.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no separate government fee for the contribution itself: you deposit 0.2% of wages per employee, up to ₹35, plus the employer’s share of up to ₹70, each month. Late deposits attract interest at 12% per annum.
Ready to begin?
Send us your headcount and wage register, and we will set up LWF deductions and deposits for your Haryana establishment.