LWF rates and frequencies vary significantly by state. Maharashtra: employee Rs 6, employer Rs 12 (bi-annual, June and December). Karnataka: employee Rs 20, employer Rs 40 (annual, December). Telangana and Andhra Pradesh have different rates. Not all states have LWF (some notably exempt certain establishments). Zoho Payroll supports LWF configuration per state with the appropriate contribution amounts and payment months.
Under Settings > Statutory Components > Labour Welfare Fund, admins configure the state, employee contribution, employer contribution, and payment frequency. Zoho Payroll applies LWF deductions only in the relevant months (e.g., June and December for Maharashtra). In non-LWF months, no LWF line appears on payslips.
Not all employees are covered under LWF in every state. Some states exempt employees above a certain salary level or in certain roles. Zoho Payroll allows admins to exclude specific employees from LWF if they fall under an exemption category. The LWF deduction appears as a separate line on payslips in applicable months.
Labour Welfare Fund (LWF) is a state-level statutory contribution in Zoho Payroll deducted from employees and matched by employers to fund worker welfare schemes. Contribution amounts and frequencies vary by state. Zoho Payroll applies LWF deductions in the correct months based on state configuration.
Not every state has LWF. States like Maharashtra, Karnataka, Telangana, Tamil Nadu, and Kerala have LWF; others like Rajasthan and some North-Eastern states do not. Zoho Payroll supports LWF for applicable states with configurable rates and payment schedules.
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