Haryana Labour Welfare Board: Revised contribution limit for Labour Welfare Fund.

The Haryana Labour Welfare Board (“HLWB”) vide its Circular No. ‘HLWB/REV/2023/2733-2982’, dated June 27, 2023 (“Circular”), has provided details regarding the contribution to be made by employee and employer in the labour welfare fund.

The above-mentioned labour welfare fund has been formed by the Haryana Government under the Punjab Labour Welfare Fund Act, 1965 (“LWF Act”) which is extended to the state of Haryana subject to the amendments made by the Haryana Government.

Previously, according to Section 9A of the LWF Act, employees were required to contribute an amount equal to 0.2 percent of their salary or wages or any remuneration every month in the labour welfare fund, subject to the maximum of INR 25 (Indian Rupees Twenty-Five Only). Additionally, each employer had to contribute twice the amount contributed by each employee every month.

However, this Circular introduces changes to the contribution limit. Effective from January 1, 2023, employees are now required to contribute an amount equal to 0.2 percent of their salary or wages or any remuneration every month in the labour welfare fund, subject to the maximum of INR 31 (Indian Rupees Thirty-One Only). Similarly, employers are expected to contribute twice the amount contributed by each employee every month.