Set up state-wise Labour Welfare Fund contributions, deducted automatically in the right months.
Labour Welfare Fund (LWF) is a state-level contribution, made by both employees and employers, that funds welfare programmes for workers. Rates, frequency, and exemptions differ from state to state. The LWF tab holds the settings for each state your organization operates in, so PrimeHR can deduct the right amounts in the right months during payroll.
How to Access LWF Settings
Log in to the Admin Panel.
Go to Settings → Organization Settings → Statutory Compliance.
Open the LWF tab.
To turn LWF on or off, use the Enable LWF toggle at the top right.
How LWF Is Deducted
Unlike PF or ESIC, most states collect LWF only in certain months, either half-yearly or annually, rather than every payroll cycle. PrimeHR deducts the employee and employer amounts for each state only in the months listed for that state.
Employer Contribution
Use the Employer Contribution dropdown at the top of the tab to choose how the employer’s share is handled. The employer share is a separate company cost, so it doesn’t reduce the employee’s pay.
Configured States
Every state set up for your organization is listed on this tab, with its LWF settings. If no states are set up yet, the page shows “No active states configured for Labour Welfare Fund.”
States Where LWF Doesn’t Apply
These states have no Labour Welfare Fund Act, so no LWF is deducted for employees working there:
Uttar Pradesh
Rajasthan
Bihar
Jharkhand
Assam
The North-Eastern states
Why it helps
LWF is deducted automatically, only in the months each state requires
Supports employees across multiple states, each with their own rules
The employer share is tracked separately, without affecting employee pay
Fewer missed deductions and compliance issues