Labour Welfare Fund in Maharashtra: Rates, Due Dates and Form A-1

The Labour Welfare Fund in Maharashtra is a small, twice-a-year contribution under the Maharashtra Labour Welfare Fund Act, 1953, managed by the Maharashtra Labour Welfare Board. The Board uses it for welfare activities for workers and their families, such as education centres, libraries, games and sports, recreation and women's home industries. The amount is small, but it is a statutory deduction that many payrolls get wrong, partly because the old wage-based rates of ₹6 and ₹12 still appear on many websites and on older copies of Form A-1. This guide covers who is covered, the current rate, when to deduct and pay, how to file Form A-1, and what happens if you pay late.

Maharashtra LWF contribution rate (2026)

These rates come from section 6BB(2) of the Act as substituted by the Maharashtra Labour Welfare Fund (Amendment) Act, 2024 (Maharashtra Act 25 of 2024), in force from 18 March 2024 (Deloitte on the 2024 amendment). The employer's share is three times the employee's. Before the amendment there were two slabs:

The amendment also allows the employee rate to be increased once every three years, by up to 30%, so check for a revision before each June and December run. For LWF rates in other states, use our labour welfare fund calculator.

Who must pay LWF in Maharashtra

Establishments covered

• factories;
• tramway or motor omnibus services and motor transport undertakings;
• establishments under the shops and establishments law (shops, offices, commercial establishments, hotels, restaurants and similar), employing five or more persons on any working day in the preceding twelve months.

Branches and departments of the same employer in the State count together. Once covered, an establishment stays covered until its headcount stays below five for at least three continuous months; the employer must then inform the authority by registered post within one month.

Employees covered and excluded

Every employee on the register on 30 June and 31 December contributes, whatever the wage, including employees engaged through contractors. Excluded from the definition of employee are:

• persons employed mainly in a managerial capacity;
• supervisory staff drawing wages of more than ₹3,500 a month, or doing mainly managerial work;
• apprentices under the Apprentices Act, 1961.

In practice, an IT company's developers, analysts and support staff are covered, while senior managers are not. Because the ₹3,500 supervisory limit is very old, most supervisors today draw more than it and fall outside the Act; decide category by category and keep a note of the basis.

Is LWF deducted every month?

No. Maharashtra LWF is deducted only twice a year, from the wages for June and December, at ₹25 each time. If a June or December deduction is missed, it can be recovered from a later month's wages only with the Inspector's written permission. The employer must still pay both shares by the due date, and may never recover its own ₹75 from employees.

Example

A Pune company has 48 covered employees on 31 December 2026 and 6 managers who are excluded. It deducts ₹25 from each covered employee's December salary (48 × ₹25 = ₹1,200), adds its own share (48 × ₹75 = ₹3,600), and pays ₹4,800 to the Board before 15 January 2027, then files Form A-1 by 31 January 2027. Over the year, with the same headcount in June, its total LWF cost is ₹9,600, of which ₹7,200 is the employer's share.

Due dates and Form A-1

Form A-1 is the half-yearly statement of contributions: the establishment's details, the number of employees on the register on 30 June or 31 December, and the employee and employer contributions. Older copies of the form show the old wage slabs; fill it at the current flat rate, and file it with the payment to avoid any doubt.

Employers must also send the Board, every quarter, any fines realised from employees and any unpaid accumulations, that is, wages, bonus or other amounts due to employees that have remained unpaid for three years (provident fund is excluded). These are due by 15 April, 15 July, 15 October and 15 January. This is often overlooked when an employee leaves without collecting final dues.

How to pay LWF in Maharashtra online

If the portal is unavailable near the due date, keep evidence of your attempts and pay as soon as it is restored.

Interest and penalties for late payment

• Interest (section 6B): if contributions are still unpaid after the period in the Welfare Commissioner's demand notice (at least 30 days), simple interest is charged at 1.5% for each completed month for the first three months counted from the 15 July or 15 January due date, and 2% a month after that. For fines and unpaid accumulations, interest runs from the date in the notice. An employer can apply for remission within 30 days of paying (rule 4-B).
• Recovery: unpaid amounts can be recovered as arrears of land revenue.
• Offences: obstructing an inspector or failing to produce records is punishable with imprisonment or fine, which is higher for a repeat offence.

How these compare with PF, ESI, TDS and PT penalties is covered in our payroll penalties guide.

LWF in payroll: practical points

• Payslip: show the ₹25 as a separate statutory deduction in June and December; see payroll deductions.
• Exits and joiners: only employees on the register on 30 June or 31 December count; a person who left on 20 December is not included in December.
• Contract labour: make sure contractors deduct and pay for their workers, or that the principal employer covers them.
• Calendar: add 15 July, 30 July, 15 January and 31 January to your payroll compliance calendar, along with Maharashtra's professional tax dates.

Related reading: Payroll compliance in India · LWF calculator (all states) · Statutory registers

Frequently asked questions

What is the LWF contribution in Maharashtra in 2026?

Since 18 March 2024, the contribution is 25 rupees from the employee and 75 rupees from the employer for each employee every six months, so the employer remits 100 rupees per employee per half-year, or 200 rupees a year. The State Government adds 50 rupees per employee. There is no longer a lower rate for low-paid employees.

Who is eligible for LWF in Maharashtra?

The Act applies to factories, motor transport undertakings and establishments under the shops and establishments law that employ five or more persons. Every employee on the register on 30 June and 31 December contributes, whatever the wage, except managerial staff, supervisory staff drawing more than 3,500 rupees a month or doing mainly managerial work, and apprentices under the Apprentices Act.

Is LWF deducted every month in Maharashtra?

No. Maharashtra LWF is deducted twice a year, from the wages for June and December, at 25 rupees each time. If a June or December deduction is missed, it can be recovered from a later month's wages only with the Inspector's written permission.

What is the due date for Maharashtra LWF?

The employer must pay the contributions for the half-year ending 30 June before 15 July, and for the half-year ending 31 December before 15 January. The return in Form A-1 is due by 30 July and 31 January.

What is Form A-1 in Maharashtra LWF?

Form A-1 is the half-yearly statement the employer sends to the Maharashtra Labour Welfare Board with the contribution, showing the number of employees and the employee and employer contributions for the half-year ending 30 June or 31 December.

What happens if LWF is paid late in Maharashtra?

If the employer does not pay within the time allowed in a demand notice, interest is charged from the original due date at 1.5% for each completed month for the first three months and 2% a month after that. Unpaid amounts can be recovered as arrears of land revenue.

Position as of 15 November 2026. Based on the Maharashtra Labour Welfare Fund Act, 1953 as amended by Maharashtra Act 25 of 2024, and the Maharashtra Labour Welfare Fund Rules, 1953 (text of the Act). General information, not legal advice.