Haryana Revises Labour Welfare Fund Contribution Rates
The Haryana Labour Welfare Board has revised employee and employer contribution rates to the Labour Welfare Fund, effective for the contribution cycle ending December 2025.
Effective from 30 June 2025
The Haryana Labour Welfare Board has notified revised contribution rates to the Labour Welfare Fund under the Punjab Labour Welfare Fund Act, 1965 as applicable to Haryana, increasing the employee contribution from ₹31 to ₹50 per half-year and the corresponding employer contribution from ₹62 to ₹100 per half-year, effective for the contribution period ending 30 June 2025.
Labour Welfare Fund contributions, while modest in absolute value, are a frequently overlooked compliance item in multi-state payroll operations because rates, periodicity (half-yearly, annual, or monthly depending on the state), and applicability thresholds vary significantly from state to state, and Haryana's revision brings its rates broadly in line with neighbouring Punjab.
Applicability continues to extend to all employees other than those in a managerial or supervisory capacity drawing wages above a specified threshold, and establishments employing the notified minimum number of persons (currently a low threshold under the Haryana scheme, capturing most commercial and industrial establishments) are covered regardless of size in most cases.
Employers are required to deduct the revised employee contribution from wages for the June 2025 contribution cycle, match it with the revised employer contribution, and remit the combined amount to the Board within the prescribed timeline, along with the half-yearly return in the prescribed form.
Since Labour Welfare Fund is one of the components frequently verified during statutory due diligence for M&A transactions and vendor empanelment audits, even small unremitted balances across multiple periods can surface as a compliance gap; employers should reconcile LWF ledgers annually against actual headcount to confirm no periods have been missed.
HR and payroll teams operating in Haryana should update statutory deduction masters for the revised ₹50/₹100 split before running the June 2025 cycle, and cross-verify that the LWF deduction is reflected as a distinct line item separate from professional tax and other state-specific deductions in the payslip, to avoid employee queries around the change in net pay.
Organisations with employees split across Haryana, Punjab, and Chandigarh should maintain a consolidated but state-tagged LWF tracker, since the three jurisdictions, though historically aligned, do not always revise rates simultaneously.
Key takeaways
- Haryana LWF contribution revised to ₹50 (employee) and ₹100 (employer) per half-year.
- Applicability covers most non-managerial employees regardless of small establishment size.
- LWF is a common gap identified during M&A and vendor statutory due diligence.
- Deduction should be updated before the June 2025 remittance cycle and shown as a distinct payslip line.
- Punjab, Haryana and Chandigarh rates should be tracked separately as they revise independently.
Action required
Update the Haryana LWF deduction masters to the revised ₹50/₹100 rates ahead of the June 2025 remittance cycle and file the half-yearly return on time.
