Revised Labour Welfare Fund Contribution: Key Updates Effective January 2024

The Government has issued a new notification revising the contribution rates under the Labour Welfare Fund Act, 1974 (as amended). These changes, effective from January 1, 2024, will impact both employers and employees in registered establishments.

What’s New?

  1. Employers’ Contribution Revised:

    • The employers' contribution has been increased to ₹30 per employee.

  2. Employees’ Contribution Unchanged:

    • The employees’ contribution remains unchanged at ₹3 per employee.

  3. Biannual Payment Schedule:

    • Contributions must be paid twice a year for the six-month periods ending:
      • June 30
      • December 31

What Does This Mean for Employers?

Employers need to ensure timely compliance with the revised rates to avoid penalties. The increase in the employer’s contribution highlights the government’s focus on strengthening welfare benefits for the workforce.

Effective Date

These changes have been in force since January 1, 2024, and all establishments are required to adhere to the revised rates immediately.

This update signifies a step forward in labour welfare, balancing minimal financial burden on employees while enhancing the resources available for their benefit.

Stay informed and ensure compliance to contribute towards a better workplace environment!

Comments

Post a Comment

Popular posts from this blog

What’s New in EPFO Withdrawal Rules (2025)

Image
What’s New in EPFO Reforms (2025) 1. Simplified Partial Withdrawal System - Earlier: 13 separate withdrawal types. - Now: Merged into 3 simple categories — faster and easier processing. 2. Shorter Partial Withdrawal Eligibility Period - Earlier: Minimum service period for withdrawal was up to 7 years. - Now: Only 1 year of service required for all withdrawal types. 3. Higher Partial Withdrawal Limit. - Earlier: Could withdraw only employee share + interest (50–100%). - Now: Can withdraw 75% of total amount (including employer share + employee share + interest). 4. Protection of Retirement Corpus. - Must retain 25% in account to build minimum savings for retirement and benefit from compounding (8.25% interest). 5.  EPF Final Withdrawal in case of Unemployment. - Earlier: Full PF accumulation withdrawal after 2 months of unemployment. - Now:  75% can be withdrawn anytime without documentation. Remaining 25% can be withdrawn after One year of Unemployment. - F...
Read more

Mandatory Upload of Photos for ESIC - IP Registration

Image
ESIC has made it mandatory for employers to upload photographs of the Insured Person (IP) and their family members as per the updated guidelines. The photographs must be clear, recent, and under 100KB in size. Without these photos, the IP cannot be registered, and family members cannot be added to the records. Failure to comply may cause issues during the claim process, potentially delaying or preventing claims for the IP. To comply with this requirement, employers should: 1. Collect Photos: Obtain clear, recent photographs of the IP and their family members, ensuring they are under 100KB in size.     2. Update Records: Store the photos in the employee records. 3. Upload to ESIC Portal: Upload the photographs to the ESIC portal to register the IP and add family members. 4. Train Staff: Ensure HR and payroll staff are aware of the new requirements and understand how to implement them. 5. Update Systems: Modify payroll or HR systems to capture, store, and submit ...
Read more

EPFO Issues New Guidelines to Simplify Transfer Claims with Overlapping Service Periods

The Employees' Provident Fund Organisation (EPFO) has issued new guidelines (Circular dated 20 May 2025) to simplify the transfer claim process for employees. Earlier, many claims were being rejected due to overlapping service periods between two jobs. However, EPFO now clarifies that such overlaps can occur due to genuine reasons and should not lead to automatic rejection. Key Points: - Transferor Office must process claims even with overlapping service, unless clarification is genuinely needed. - Verification responsibility lies with the Transferor Office to ensure accurate transfer. - Based on guidance from the Pension Division, members with multiple PF accounts remain eligible for pension benefits. This move aims to make EPF transfers smoother and employee-friendly.
Read more