Labour Welfare Fund in case of Zero payment or Leave without Pay

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1

Hi All,

One of our employees was on leave in December for the entire month. So the system has calculated 0 MLWF contribution for her. Is this correct? Or do we need to still pay her MLWF contribution? If yes, how much?

Thanks,
Deepti

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2

Hope for Maharashtra, the deduction happens, two times a year - June and December, right?
If employee is part of your muster, you have to consider the employee for LWF. Employee may be on leave or even continuing unauthorized absenteeism. Leave or absenteeism is not a reason to exclude from LWF is my understanding. Let’s also listen to other collaborators as well

Please refer this for amount and rules

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3

Hi @Deepti

Labour welfare fund is a statutory contribution managed by individual state authorities where the rules are set based on the service offered for a period (which in this case in more than a month of service as LWF is remitted in two periods as June & December).

So one month of LOP or Zero Payment cannot be a reason in this case, monthly deduction will have to be deducted as arrears and remitted for continuity in qualifying period

However. deduction towards EPF, PT, etc shall not be made for such period of no-salary.

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4

Yes, we will have to deduct the LWF in case contribution is Quarterly or half yearly.

Incase, contribution is monthly basis then the effect of Non Paid days will come in consideration.

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5

Hi,
Currently i am handling two states LWF which are Karnataka and TamiNadu.

In Karnataka we consider only active employees mentioned in Dec payroll and need to deduct LWF which means no LWF deduction for zero salary employees. In fact while filing the returns we need not to show these zero employees.

In Tamil Nadu we need to consider all the employees through out the year who and all completed 30 days in calendar year accordingly need to pay LWF.

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