Glossary
Labour Welfare Fund (LWF)
A state-administered welfare fund financed by small, periodic employer and employee contributions, governed by state-specific LWF Acts that sit outside the four central Labour Codes.
LWF contributions are typically small, fixed amounts collected half-yearly or annually, varying by state, and fund welfare activities for workers such as education and healthcare support.
Because LWF is a state-law creature, not a Code provision, its rates and applicability differ state by state and are unaffected by the central Codes’ commencement.
Why it matters now: multi-state employers still need a state-by-state LWF compliance calendar — the Codes didn’t consolidate this the way they did wages and social security.