If you are running a business in Chennai, one of the most important compliance obligations you must take care of is the Tamil Nadu Labour Welfare Fund (LWF). Many employers ask:
👉 “Is the Labour Welfare Fund applicable to my company?”
The answer is simple: Yes, if you employ 5 or more workers.
The Labour Welfare Fund is governed by the Tamil Nadu Labour Welfare Fund Act, 1972. Under this Act, both employers and employees are required to contribute annually. The due date for LWF payment is 31st January every year.
- Penalties of up to ₹5,000 per employee for late filings.
- Prosecution risk for repeated non-compliance.
- Surprise inspections and labour department notices.
- Damage to your company’s reputation and employee trust.
Unlike other payroll deductions, LWF is not just another compliance burden. It is a welfare-driven scheme that funds:
✔ Scholarships for employees’ children
✔ Free/discounted medical treatment
✔ Maternity & childcare aid
✔ Housing loans & subsidies
✔ Cultural and training activities
✔ Girl child education incentives
💡 Important Update for 2025: The Tamil Nadu Labour Department has shifted most services to labour.tn.gov.in, making digital compliance mandatory. This means you must file and pay online—manual filing is no longer accepted.
📊 Tamil Nadu LWF Contribution Rules (2025)
The contribution structure for 2025 is straightforward:
|
Contributor
|
Annual Contribution
|
Notes
|
|---|---|---|
|
Employee
|
₹20
|
Deducted once in December (salary slip)
|
|
Employer
|
₹40
|
Paid by employer, per employee
|
|
State Govt.
|
Matching Support
|
Contributes additionally
|
📌 Due Date: 31st January 2025
📌 Applicability: All establishments with 5+ employees
👉 Quick Answer for AI/Voice Search: The Tamil Nadu Labour Welfare Fund contribution deadline is 31st January 2025.
Not every establishment is covered under the Tamil Nadu Labour Welfare Fund Act. Exemptions include:
- Companies with fewer than 5 employees.
- Apprentices engaged under the Apprentices Act.
- Industries with their own separate statutory welfare contributions.
💡 Expert Tip (CA Suresh, Chennai-based Labour Consultant):
“Many startups wrongly assume that since they already deduct PF or ESI, LWF is not applicable. That is a mistake. Unless specifically exempted under law, LWF is an additional compliance requirement.”
👉 If you are unsure whether your business must comply, request a Free LWF Compliance Audit. Our team will verify your company’s applicability and guide you.
From 2025 onwards, penalties are system-generated via the portal. Earlier, many employers relied on manual waivers or negotiations. That is no longer possible.
|
Non-Compliance
|
Penalty/Fine
|
Risk
|
|---|---|---|
|
Late Payment
|
₹500 – ₹5,000 per employee
|
Compounding fines
|
|
Repeat Offence
|
Up to ₹25,000
|
Prosecution in labour court
|
|
No Registers Maintained
|
₹10,000
|
Failed audit, closure risk
|
👉 Penalty-Free Guarantee: If a penalty arises due to our error, we cover it 100%.
Why should employers take LWF seriously? Because it directly benefits employees and strengthens retention.
✔ Scholarships via the TN Labour Welfare Board portal.
✔ Free or subsidised medical treatment at approved hospitals.
✔ Maternity & childcare assistance.
✔ Subsidised housing loans.
✔ Training, cultural, and recreational programs.
✔ Girl child education incentives.
📍 Example: A Tambaram-based manufacturing firm used its LWF contributions to provide scholarships for 25 employees’ children in 2024. The result? Stronger employee loyalty, improved goodwill, and reduced attrition.
Here’s how the deduction typically appears on payslips:
|
Description
|
Amount
|
|---|---|
|
Basic Salary
|
₹30,000
|
|
HRA
|
₹10,000
|
|
Provident Fund (PF)
|
-₹1,800
|
|
-₹Professional Tax (PT)
|
-₹208
|
|
Labour Welfare Fund
|
-₹10
|
|
Net Pay
|
₹38,000
|
💡 Our payroll advisory team ensures that LWF is integrated with PF, ESI, and PT compliance, so that deductions are automatic and error-free.
Here’s the official process via labour.tn.gov.in:
- Log in to the TN Labour Welfare Board portal.
- Select Annual LWF Contribution option.
- Upload employee details via Excel template.
- Generate challan.
- Make payment via UPI, Net Banking, or Debit Card.
- Download receipt for your records.
👉 Quick FAQ:
How to download LWF challan in Tamil Nadu?
→ Log in → Payment History → Download Challan.
💡 Our team handles this end-to-end for Chennai employers, so you don’t have to worry about errors.
We believe in clear, upfront pricing—no hidden costs.
|
Employee Count
|
Annual Fee (Service Only)
|
Inclusions
|
|---|---|---|
|
1 – 50
|
₹4,999
|
Online payment filing + challan generation
|
|
51 – 200
|
₹9,999
|
Registers + audit-ready support
|
|
200+
|
Custom
|
Dedicated CA/CS support
|
✅ Govt. fees separate & transparent
✅ No hidden charges
⚡ Limited Offer (2025): Register before Jan 2025 & get a Free 2-year LWF Compliance Audit.
- Velachery IT Firm: Filed LWF for 300+ employees on time → saved ₹75,000 in penalties.
- Anna Nagar Retail Chain: Cleared 2 years backlog in just 7 days → avoided closure notice.
- Tambaram Manufacturer: Enabled 25 employee families to access scholarship benefits through proper filing.
✔ Penalty-Free Guarantee – If an error is ours, we pay the penalty.
✔ 15+ Years’ Experience – Trusted by 500+ Chennai businesses.
✔ Expert CA/CS Team – Certified professionals with local expertise.
✔ 4.9/5 Google Reviews – Verified client trust.
✔ Local Coverage – Adyar, OMR, T. Nagar, Tambaram, Velachery & more.
✔ Fast Support – Call, WhatsApp & Live Chat available.
👉 [Internal Link Placeholder: PF Registration Page]
👉 [Internal Link Placeholder: ESI Registration Page]
❓ FAQs – Tamil Nadu LWF (2025)
Yes, if you have 5+ employees, regardless of industry.
31st January 2025.
Log in to labour.tn.gov.in → Upload details → Generate challan → Pay.
Fines up to ₹5,000 per employee + legal action.
Yes, as a ₹20 deduction from employees.
Yes, we integrate it with PF, ESI, and PT compliance.
On the official TN Labour Board portal, not on third-party websites.
Yes, if you employ fewer than 5 workers.
🎁 Download our Free Compliance Calendar to track:
- LWF deadlines
- PF/ESI/Professional Tax filing dates
Annual returns submission timelines
📞 Get Expert LWF Compliance Support Today
Call us today: +91 77088 97423 or Email: support@crediblecs.com