Labour Welfare Fund :
Tamil Nadu
According to the Tamil Nadu Labour Welfare Fund Act, you are required to make annual welfare fund contributions if your factory, catering establishment or commercial office has five or more employees.
The fund is on an annual basis only and the total contribution per annum is ₹60.00 for a non-managerial worker. This is shared between the employee who pays ₹20.00 from his salary and the employer who pays ₹40.00 directly.
Your final liabilities are calculated based on your staff count on the statutory cutoff date of December 31st each year. You then have a one-month window to wrap everything up, meaning your online Form A returns and payments must be fully completed by January 31st of the following year to stay clear of state board penalties.
Act Information
Act:The Tamil Nadu Labour Welfare Fund Act, 1972
Rule:Tamil Nadu Labour Welfare Fund Rules, 1973
Applicability:Any commercial establishment, factories and shops employing more than 5 or more employees fall under this act. Its enforcement is overseen by the Labour Commissioner.
Exemption:Supervisor and Manager
Authority:Labour Welfare Fund Commissioner
Interest:10% on every late payment
Penalty:13% per annum on every late payment
Labour Welfare Fund Contribution
Category:To all Employees except part timers or apprentices and Managerial staff.
Employee:20
Employer:40
Total:60
Deduction Date:31 December
Return Submission:31 January