Revision in LWF contributions

The Government of Haryana, vide notification No. HLWB/REV/2023/2733-2982, dated 27^th June, 2023, has revised the Labour Welfare Fund Contribution, which should be paid by the employee and employer every month, effective from 1^st January, 2023. The new rate of contribution will be as below:

The above said employee contribution should be deducted from the respective employee’s wages every month and should be paid to the Haryana Labour Welfare Board, along with the employer contribution which should be twice the amount deducted from employee wages . The definition of “wages” under the Payment of Wages Act, 1936 applies here. An extract of the said definition is given below for your reference:

“Wages” means all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money, or capable of being so expressed which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes—

1. a) any remuneration payable under any award or settlement between the parties or order of a court;
2. b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;
3. c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);
4. d) any sum which by reason of termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment or such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;
5. e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force; but does not include:
6. any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a Court;
7. the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of [the appropriate Government];
8. any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
9. any travelling allowance or the value of any travelling concession;
10. any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or
11. any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).

It is important to note that the above said revision is with a retrospective effect, that is from 1^stJanuary, 2023. Hence, the employer has to pay the above said contribution with effect from 1^stJanuary, 2023.