Labour Welfare Fund (LWF) Slab in Madhya Pradesh
Madhya Pradesh Labour Welfare Fund
"Labour Welfare Fund" (LWF) is a statutory endowment contributed by Employer, Employee and by the Government Madhya Pradesh to improve the working conditions, to provide social security and to raise the living standards of Laborers and Workers in unorganized sectors. The quantum and periodicity of contribution is fixed by the respective State Labour Welfare Board. This page will show the exact quantum, state wise.
What is Labour Welfare Fund?
Labour welfare is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living.
To justify the above statement, various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.
Scope of Labour Welfare Fund Act
The scope of this Act is extended to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral etc. State specific Labour Welfare Funds are funded by contributions from the employer, employee and in a few states, the government also.
Applicability of the Act
In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories.
The Madhya Pradesh Labour Welfare Fund (LWF) contribution rates under the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 were revised effective January 2026. The employee contribution is ₹10 and the employer share is increased to ₹50, making a total half-yearly contribution of ₹60 per eligible employee.
Contribution Breakdown (Per Employee)
- Employee Share: ₹10 per half-year
- Employer Share: ₹50 per half-year (increased from ₹30)
- Total Contribution: ₹60 per half-year
- Minimum Establishment Contribution: ₹2,500 per half-year (for employers)
Key Compliance Rules
- Frequency: Half-yearly
- Due Dates:
- January to June period: Due by July 15
- July to December period: Due by January 15
- Applicability: Establishments employing 1 or more persons on any working day in the preceding 12 months.
- Exemptions: Employees in managerial or supervisory capacity drawing wages exceeding ₹10,000 per month.
Madhya Pradesh Labour Welfare Fund Slab 2026
The Madhya Pradesh Labour Welfare Fund (LWF) is governed by the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 and the Madhya Pradesh Shram Kalyan Nidhi Rules, 1984. For 2026, the contribution rates have been revised, with the employer contribution increasing from ₹30 to ₹50 per employee per half-year, while the employee contribution remains ₹10.
Madhya Pradesh LWF Contribution – 2026
| Contributor | Per Half-Year | Annual |
|---|---|---|
| Employee | ₹10 | ₹20 |
| Employer | ₹50 | ₹100 |
| Total | ₹60 | ₹120 |
The revised rates apply from the January–June 2026 contribution period.
Is Madhya Pradesh LWF Salary-Based?
No. Madhya Pradesh LWF is a fixed contribution, rather than a percentage of salary.
However, the Act excludes certain employees working in managerial or supervisory capacity who draw wages exceeding ₹10,000 per month. This is an eligibility/exclusion condition, not a salary-wise contribution slab.
Madhya Pradesh LWF 2026 at a Glance
- State: Madhya Pradesh
- Governing Act: Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
- Rules: Madhya Pradesh Shram Kalyan Nidhi Rules, 1984
- Employee contribution: ₹10 per half-year
- Employer contribution: ₹50 per half-year
- Total contribution: ₹60 per half-year
- Annual employee contribution: ₹20
- Annual employer contribution: ₹100
- Annual total: ₹120 per eligible employee
- Frequency: Half-yearly
- Salary-based slab: No
- Employer minimum contribution: ₹2,500 per establishment per half-year
Madhya Pradesh LWF Payment Schedule – 2026
| Contribution Period | Employee | Employer | Total | Due Date |
|---|---|---|---|---|
| January–June | ₹10 | ₹50 | ₹60 | 15 July 2026 |
| July–December | ₹10 | ₹50 | ₹60 | 15 January 2027 |
The contribution is generally deducted on 30 June and 31 December, with submission by 15 July and 15 January, respectively.
Madhya Pradesh LWF Calculation Example
For an establishment with 100 eligible employees:
January–June 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹10 | ₹1,000 |
| Employer contribution | 100 × ₹50 | ₹5,000 |
| Total LWF | 100 × ₹60 | ₹6,000 |
Annual Contribution
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹20 | ₹2,000 |
| Employer contribution | 100 × ₹100 | ₹10,000 |
| Annual LWF | 100 × ₹120 | ₹12,000 |
Employer Minimum Contribution
The revised rules also specify a minimum employer contribution of ₹2,500 per establishment per half-year. Therefore, employers should consider this establishment-level minimum when calculating their actual liability.
Who Is Covered Under Madhya Pradesh LWF?
The LWF framework generally applies to an employer or establishment employing one or more employees/persons, subject to the statutory definitions and exclusions.
Certain employees working in managerial or supervisory capacity and drawing wages exceeding ₹10,000 per month are excluded from the applicable employee category.
Does the Same LWF Rate Apply Across Madhya Pradesh?
Yes. There is no separate city-wise LWF slab for Madhya Pradesh.
The same state-level contribution applies to covered establishments in cities such as Bhopal, Indore, Jabalpur, Gwalior, Ujjain, Sagar, Dewas, Satna, Ratlam, Rewa, Chhindwara, and Guna.
Therefore, Bhopal LWF, Indore LWF, Jabalpur LWF and other city-specific pages use the same Madhya Pradesh state-level contribution rates.
Madhya Pradesh LWF vs Professional Tax
| Particular | Labour Welfare Fund | Professional Tax |
|---|---|---|
| Nature | Employee welfare contribution | State tax |
| Salary-based LWF slab | No | Separate provisions |
| Employee contribution | ₹10/half-year | As applicable |
| Employer contribution | ₹50/half-year | As applicable |
| Total LWF | ₹60/half-year | Not applicable |
| Annual LWF | ₹120 | Not applicable |
| Frequency | Half-yearly | As applicable |
Payroll Compliance Note
For Madhya Pradesh payroll in 2026, the standard LWF configuration is:
- Employee LWF = ₹10 per half-year
- Employer LWF = ₹50 per half-year
- Total = ₹60 per eligible employee per half-year
Annual employee/employer contribution: ₹20 + ₹100 = ₹120 per eligible employee per year.
Employers should also account for the ₹2,500 minimum employer contribution per establishment per half-year where applicable.
Important: Labour Welfare Fund and Professional Tax are separate statutory obligations. Employers should verify employee eligibility and the latest Madhya Pradesh Labour Welfare Board requirements before finalising payroll filings.
Bhopal Labour Welfare Fund Slab 2026
Bhopal follows the Madhya Pradesh Labour Welfare Fund (LWF) provisions. There is no separate Labour Welfare Fund slab specifically for Bhopal. The applicable law is the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982, along with the relevant rules.
For 2026, the employee contribution is ₹10 per half-year, and the employer contribution is ₹50 per employee per half-year. The revised employer contribution applies from the January–June 2026 contribution period.
Bhopal Labour Welfare Fund Contribution – 2026
| Contribution | Employee | Employer | Total |
|---|---|---|---|
| Per Half-Year | ₹10 | ₹50 | ₹60 |
| Annual | ₹20 | ₹100 | ₹120 |
The contribution is fixed and not calculated as a percentage of salary.
Bhopal LWF 2026 at a Glance
- City: Bhopal
- State: Madhya Pradesh
- Applicable law: Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
- Employee contribution: ₹10 per half-year
- Employer contribution: ₹50 per half-year
- Total contribution: ₹60 per half-year
- Annual employee contribution: ₹20
- Annual employer contribution: ₹100
- Annual total: ₹120 per eligible employee
- Frequency: Half-yearly
- Salary-based slab: No
- Employer minimum contribution: ₹2,500 per establishment per half-year
Is Bhopal LWF Salary-Based?
No. Madhya Pradesh LWF is a fixed contribution.
The employee does not contribute a percentage such as 0.2% or 1% of salary. Instead, the applicable contribution for 2026 is:
- Employee = ₹10 per half-year
- Employer = ₹50 per half-year
The wage threshold applicable to certain managerial/supervisory employees is an eligibility condition, not a salary-wise LWF slab.
Bhopal LWF Payment Schedule – 2026
| Contribution Period | Employee | Employer | Total | Due Date |
|---|---|---|---|---|
| January–June 2026 | ₹10 | ₹50 | ₹60 | 15 July 2026 |
| July–December 2026 | ₹10 | ₹50 | ₹60 | 15 January 2027 |
The contribution is generally calculated/deducted at the end of each half-year, with payment by the applicable statutory due date.
Bhopal LWF Calculation Example
Suppose a Bhopal establishment has 100 eligible employees.
January–June 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹10 | ₹1,000 |
| Employer contribution | 100 × ₹50 | ₹5,000 |
| Total LWF | 100 × ₹60 | ₹6,000 |
Full Year 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹20 | ₹2,000 |
| Employer contribution | 100 × ₹100 | ₹10,000 |
| Annual LWF | 100 × ₹120 | ₹12,000 |
Employer Minimum Contribution
The employer contribution is subject to a minimum of ₹2,500 per establishment per half-year, where applicable. Therefore, employers should not simply multiply ₹50 by the employee count without checking the establishment-level minimum requirement.
Who Is Covered Under Madhya Pradesh LWF?
The applicability of the Madhya Pradesh Shram Kalyan Nidhi provisions depends on the establishment and statutory definition of an employee.
Certain employees working in managerial or supervisory capacities and drawing wages above the prescribed threshold may be excluded. Employers should therefore determine eligibility before making payroll deductions.
The ₹10,000 wage threshold sometimes mentioned in LWF references should not be presented as a contribution slab. It relates to employee eligibility/exclusion under the applicable provisions.
Bhopal LWF vs Professional Tax
| Particular | Labour Welfare Fund | Professional Tax |
|---|---|---|
| Nature | Employee welfare contribution | State tax |
| Salary-based LWF | No | Separate provisions |
| Employee contribution | ₹10/half-year | As applicable |
| Employer contribution | ₹50/half-year | As applicable |
| Total LWF | ₹60/half-year | — |
| Annual LWF | ₹120 | — |
| Frequency | Half-yearly | As applicable |
Indore Labour Welfare Fund Slab 2026
Indore follows the Madhya Pradesh Labour Welfare Fund (LWF) provisions. There is no separate LWF slab specifically for Indore. The applicable law is the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982, along with the Madhya Pradesh Shram Kalyan Nidhi Rules, 1984. The 2026 contribution rates are ₹10 from the employee and ₹50 from the employer per half-year.
Indore Labour Welfare Fund Contribution – 2026
| Contribution | Employee | Employer | Total |
|---|---|---|---|
| Per half-year | ₹10 | ₹50 | ₹60 |
| Annual | ₹20 | ₹100 | ₹120 |
The contribution is fixed, not a percentage of salary.
Indore LWF 2026 at a Glance
- City: Indore
- State: Madhya Pradesh
- Applicable law: Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
- Employee contribution: ₹10 per half-year
- Employer contribution: ₹50 per half-year
- Total: ₹60 per half-year
- Annual employee contribution: ₹20
- Annual employer contribution: ₹100
- Annual total: ₹120 per eligible employee
- Frequency: Half-yearly
- Salary-based slab: No
- Minimum employer contribution: ₹2,500 per establishment per half-year
Is Indore LWF Salary-Based?
No. Madhya Pradesh LWF is a fixed contribution rather than a salary-percentage deduction.
The applicable employee category generally excludes employees working in managerial or supervisory capacity who draw wages exceeding ₹10,000 per month. This is an eligibility condition, not a salary-wise contribution slab.
Indore LWF Payment Schedule – 2026
| Contribution Period | Employee | Employer | Total | Deduction Date | Submission Deadline |
|---|---|---|---|---|---|
| January–June 2026 | ₹10 | ₹50 | ₹60 | 30 June 2026 | 15 July 2026 |
| July–December 2026 | ₹10 | ₹50 | ₹60 | 31 December 2026 | 15 January 2027 |
These half-yearly contribution periods and deadlines are reflected in current Madhya Pradesh LWF compliance references.
Indore LWF Calculation Example
Suppose an Indore establishment has 100 eligible employees.
January–June 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹10 | ₹1,000 |
| Employer contribution | 100 × ₹50 | ₹5,000 |
| Total LWF | 100 × ₹60 | ₹6,000 |
Full Year 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹20 | ₹2,000 |
| Employer contribution | 100 × ₹100 | ₹10,000 |
| Annual LWF | 100 × ₹120 | ₹12,000 |
Minimum Employer Contribution
The revised 2026 provisions increase the minimum employer contribution from ₹1,500 to ₹2,500 per establishment per half-year. Employers should therefore check this establishment-level minimum when calculating their actual liability.
Who Is Covered Under Madhya Pradesh LWF?
Current compliance references state that the Madhya Pradesh LWF framework applies to employers/establishments employing one or more employees/persons, subject to statutory definitions and exclusions.
Employers should determine whether each employee falls within the covered category before making the deduction, particularly where managerial or supervisory employees are concerned.
Indore LWF vs Professional Tax
| Particular | Labour Welfare Fund | Professional Tax |
|---|---|---|
| Nature | Employee welfare contribution | State tax |
| Salary-based LWF | No | Separate provisions |
| Employee contribution | ₹10/half-year | As applicable |
| Employer contribution | ₹50/half-year | As applicable |
| Total LWF | ₹60/half-year | — |
| Annual LWF | ₹120 | — |
| Frequency | Half-yearly | As applicable |
Jabalpur Labour Welfare Fund Slab 2026
Jabalpur follows the Madhya Pradesh Labour Welfare Fund (LWF) provisions. There is no separate LWF slab specifically for Jabalpur. The applicable framework is the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 and the Madhya Pradesh Shram Kalyan Nidhi Rules, 1984. The 2026 revised contribution is ₹10 from the employee and ₹50 from the employer per half-year.
Jabalpur Labour Welfare Fund Contribution – 2026
| Contribution | Employee | Employer | Total |
|---|---|---|---|
| Per Half-Year | ₹10 | ₹50 | ₹60 |
| Annual | ₹20 | ₹100 | ₹120 |
The contribution is fixed and not calculated as a percentage of salary.
Jabalpur LWF 2026 at a Glance
- City: Jabalpur
- State: Madhya Pradesh
- Applicable law: Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
- Employee contribution: ₹10 per half-year
- Employer contribution: ₹50 per half-year
- Total contribution: ₹60 per half-year
- Annual employee contribution: ₹20
- Annual employer contribution: ₹100
- Annual total: ₹120 per eligible employee
- Frequency: Half-yearly
- Salary-based slab: No
- Minimum employer contribution: ₹2,500 per establishment per half-year
Is Jabalpur LWF Salary-Based?
No. Madhya Pradesh LWF uses a fixed contribution rather than a percentage of salary.
The applicable employee category generally excludes employees working in managerial or supervisory capacity and drawing wages exceeding ₹10,000 per month. This is an eligibility condition, not a salary-wise contribution slab.
Jabalpur LWF Payment Schedule – 2026
| Contribution Period | Employee | Employer | Total | Deduction Date | Submission Deadline |
|---|---|---|---|---|---|
| January–June 2026 | ₹10 | ₹50 | ₹60 | 30 June 2026 | 15 July 2026 |
| July–December 2026 | ₹10 | ₹50 | ₹60 | 31 December 2026 | 15 January 2027 |
The Madhya Pradesh LWF contribution is made half-yearly.
Jabalpur LWF Calculation Example
Suppose a Jabalpur establishment has 100 eligible employees.
January–June 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹10 | ₹1,000 |
| Employer contribution | 100 × ₹50 | ₹5,000 |
| Total LWF | 100 × ₹60 | ₹6,000 |
Full Year 2026
| Particular | Calculation | Amount |
|---|---|---|
| Employee contribution | 100 × ₹20 | ₹2,000 |
| Employer contribution | 100 × ₹100 | ₹10,000 |
| Annual LWF | 100 × ₹120 | ₹12,000 |
Minimum Employer Contribution
The minimum employer contribution is ₹2,500 per establishment per half-year. Therefore, employers should check the establishment-level minimum rather than relying only on the per-employee calculation.
Who Is Covered Under Madhya Pradesh LWF?
The Madhya Pradesh LWF framework applies to employers/establishments employing one or more employees/persons, subject to the statutory definitions and exclusions.
Certain managerial and supervisory employees drawing wages above the prescribed threshold may be excluded. Employers should verify employee eligibility before making the LWF deduction.
Jabalpur LWF vs Professional Tax
| Particular | Labour Welfare Fund | Professional Tax |
|---|---|---|
| Nature | Employee welfare contribution | State tax |
| Salary-based LWF | No | Separate provisions |
| Employee contribution | ₹10/half-year | As applicable |
| Employer contribution | ₹50/half-year | As applicable |
| Total LWF | ₹60/half-year | — |
| Annual LWF | ₹120 | — |
| Frequency | Half-yearly | As applicable |
Conclusion
The Madhya Pradesh Labour Welfare Fund (LWF) is governed by the Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982 and the Madhya Pradesh Shram Kalyan Nidhi Rules, 1984. For 2026, the contribution rates have been revised, with the employer contribution increasing from ₹30 to ₹50 per employee per half-year, while the employee contribution remains ₹10.
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