Thursday, June 19, 2025

Labour Welfare Fund (LWF) deduction from corporate employee's salary. Monthly Deduction of ₹31/- Towards Labour Welfare Fund (LWF)- Haryana

Yes, in Haryana, the Labour Welfare Fund (LWF) deduction is applicable to corporate white-collar employees, provided they meet the eligibility criteria outlined in the Haryana Labour Welfare Fund Act.

if a corporate employee's salary falls within the LWF's wage bracket and the establishment is covered by the Act, the LWF deduction is applicable.


  1. Scope of the Labour Welfare Fund Act:
    The LWF was originally introduced to extend welfare benefits to industrial workers and factory laborers. It does not universally apply to all categories of employees in every type of establishment.

  2. Corporate Employees vs. Industrial Workers:
    The nature and purpose of the LWF primarily address the welfare needs of blue-collar workers. Applying this deduction to white-collar employees in corporate office settings—especially those in managerial or supervisory roles—appears inconsistent with the intent of the Act.

  3. Haryana LWF Provisions:
    While it is acknowledged that the Haryana Labour Welfare Fund Act extends to certain categories of corporate employees, the applicability is subject to:

    • The establishment being covered under the Act.

    • The employee falling within the prescribed wage ceiling (currently ₹15,000/-) and not holding a managerial or supervisory position.

  4. Exclusion Clause:
    As per the Act, employees earning above ₹15,000/- per month or working in a managerial/supervisory capacity are explicitly excluded from LWF deductions.


Conclusion 

The blanket deduction of ₹31/- for LWF from all corporate employees' salaries, without assessing their eligibility based on role and income, appears to be non-compliant with the provisions of the applicable Labour Welfare Fund legislation.


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