The Labour Welfare Fund (LWF) in India is a contributory initiative managed by state authorities that aims at the prosperity of workers. The LWF contribution frequency and amount are determined by each state's Labour Welfare Board, resulting in variation across states. This fund is underpinned by the Labour Welfare Fund Act, enacted by different state legislatures to emphasize worker welfare. Among the 37 states and union territories, 16 have established this Act.

Employers and workers both contribute to the LWF, with the schedule varying—annual in some states and semi-annual in others. This fund offers financial aid, enhances living standards, and provides social security and better workplace conditions.

The applicability of the LWF hinges on respective state Acts, informed by factors like employee numbers, designations, and wage levels. Commonly, it covers factory workers within a specific wage bracket, establishments under the Shop and Establishment Act, transport services, plantation workers, and societies.

States that have implemented the Labour Welfare Fund include Andhra Pradesh, Chandigarh, Chattisgarh, Delhi, Goa, Diu and Daman, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, and West Bengal.

The allocated funds serve various purposes such as educational and medical facilities for workers and their families, workplace commuting, concessional housing loans, vocational training, and children's nutrition. However, the specific benefits vary by state.

Both the employer and employee contributions are mandated under the Labour Welfare Fund Act provisions. Typically, the contributions are deducted from salaries by employers and done either annually, semi-annually, or monthly, in line with state regulations. Employers are required to remit these contributions to the Labour Welfare Fund Board using a specified form before the deadline.

Deduction amounts and frequency differ by state:

• Andhra Pradesh: Annually, Rs. 30 for employees, Rs. 70 for employers, summing to Rs. 100.
• Chandigarh: Monthly, Rs. 5 for employees, Rs. 20 for employers, totaling Rs. 25.
• Chattisgarh: Half-yearly, Rs. 15 for employees, Rs. 45 for employers, totaling Rs. 60.
• Delhi: Half-yearly, Rs. 0.75 for employees, Rs. 2.25 for employers, totaling Rs. 3.
• Goa, Diu and Daman: Half-yearly, Rs. 60 for employees, Rs. 180 for employers, totaling Rs. 240.
• Gujarat: Half-yearly, Rs. 6 for employees, Rs. 12 for employers, totaling Rs. 18.
• Haryana: Monthly, Rs. 31 for employees, Rs. 62 for employers, totaling Rs. 93.
• Karnataka: Yearly, Rs. 20 for employees, Rs. 40 for employers, totaling Rs. 60.
• Kerala (Shops and Establishment Act): Monthly, Rs. 50 for both, totaling Rs. 100.
• Kerala (Factories Act): Half-yearly, Rs. 4 for employees, Rs. 8 for employers, totaling Rs. 12.
• Madhya Pradesh: Half-yearly, Rs. 10 for employees, Rs. 30 for employers, totaling Rs. 40.
• Maharashtra (up to Rs. 3,000 salary per month): Half-yearly, Rs. 6 for employees, Rs. 18 for employers, totaling Rs. 24.
• Maharashtra (above Rs. 3,000 salary per month): Half-yearly, Rs. 12 for employees, Rs. 36 for employers, totaling Rs. 48.
• Odisha: Half-yearly, Rs. 10 for employees, Rs. 20 for employers, totaling Rs. 30.
• Punjab: Monthly, Rs. 5 for employees, Rs. 20 for employers, totaling Rs. 25.
• Tamil Nadu: Yearly, Rs. 20 for employees, Rs. 40 for employers, totaling Rs. 60.
• Telangana: Yearly, Rs. 2 for employees, Rs. 5 for employers, totaling Rs. 7.
• West Bengal: Half-yearly, Rs. 3 for employees, Rs. 15 for employers, totaling Rs. 18.

Understanding the deduction amounts and frequency in their respective states is crucial for both employers and employees for compliance and to access the Labour Welfare Fund benefits.

In summary, the Labour Welfare Fund is pivotal in enhancing the welfare and living standards of workers across various Indian states. The combined contributions by employers and employees contribute significantly towards aiding laborers and safeguarding their well-being.