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Complete Guide To Andhra Pradesh Labour Welfare Fund (LWF), Its Applicability, Registration, Due Dates, Contribution Rate & Penal Interest

Rewati Krishnan
Sanjeev Kumar |inUpdated : January 24, 2025

Overview : This blog is about the Andhra Pradesh Labour Welfare Fund, which provides detailed information about the applicability of The Andhra Pradesh Labour Welfare Act on the establishment and its exception, contribution periods, contribution rates in respect of employees and employers, due date for LWF payment/return filing under the Andhra Pradesh Labour Welfare Fund, The blog also deals with the late payment interest and penalty for non-compliance.

Introduction to Andhra Pradesh LWF

Andhra Pradesh Labour Welfare Board is constituted under the “Andhra Pradesh Labour Welfare Fund Act, 1987”. This Board primarily caters to the social security needs of the Organized sector workers. The Board receives fund contributions from employees and employers and matching contributions from the government.

Key Highlights of the Andhra Pradesh Labour Welfare Fund

S.No Particulars Key Information
1.Governing ActThe Karnataka Labour Welfare Fund Act 1987.
2.Effective Date19 August 1987
3.ApplicabilityEstablishments employing twenty or more employees. (Employees of all branches, all over India shall be counted for this purpose)
4.RegistrationNo separate registration is required when already registered under the AP Shops & Establishment Act.
5.Contribution RateSection 10(1)
  • Employee: ₹30/-
  • Employer: ₹70/-
6.Contribution PeriodYearly
7.Due DateYearly (1st Jan to 31st Dec): 31 January

Applicability of Andhra Pradesh Welfare Fund Act, 1987

The Andhra Pradesh Labour Welfare Fund Act, 1987 covers or extends to the whole state of Andhra Pradesh. This act applies to all establishments or employers where Twenty or more employees are working or employed during the twelve preceding months.

Meaning of Establishment

Section 2(4) of The Act defines “Establishment” as a factory, a motor transport undertaking as defined in the Motor Transport Workers Act, 1961, and any other establishment as defined in section 2 (10) of the Andhra Pradesh Shops and Establishments Act. It includes a society registered under any law in force in the State relating to the registration of societies and a charitable or other trust, whether registered or not, which carries on any business or trade or any work in connection with or ancillary thereto and which employs or on any working day during the preceding twelve months employed twenty or more persons.

Employee Under Section 2(i) of The Act

Employee means Any person who is employed for hire or reward to do any work, skilled or unskilled, manual, supervisory, clerical, or technical, in an establishment for thirty days during twelve months, whether the terms of employment be express or implied. But does not include any person employed mainly in a managerial capacity or as an apprentice or part-time.

Employer Under Section 2(3) of The Act

‘Employer’ means any person who employs either directly or through another person, either on behalf of himself or any other person, in an establishment and includes In a factory, any person named under section 7(1) (f) of the Factories Act, 1948 (Central Act 63 of 1948) as the manager or In any establishment, any person is responsible to the owner for the supervision and control of the employees or the payment of wages.

Registration of Andhra Pradesh LWF

Once workers reach twenty or more on any working day during the preceding twelve months, the employer must pay contributions under the Andhra Pradesh Labour Welfare Board. Enter the details regarding Employer and Establishment Details, Total amount of Contribution, Year of Contribution, and Uploading of Excel Sheet of Employees Details, etc. And pay the contribution amount. After the verification from the authority, the applicant can download the certificate.

An establishment registered under the Andhra Pradesh Shops & Establishment Act need not obtain a separate registration under the LWF. For the purpose of payment to LWF contribution, the establishment needs to log in to the Official Site of the Andhra Pradesh Labour Welfare Board, and by entering the details of the establishment as registered under the Shops & Establishment Act, the LWF contribution can be paid.

Contribution made by the employees and employer

Every establishment or employer where Twenty or more employees are employed and covered under this act needs to contribute to the Andhra Pradesh Labour Welfare Fund under the act. Every establishment or employer must pay a contribution towards LWF once a year on 31st December for every employee and an employer for each such employee.

PayerRate of contribution as of 31st December
EmployeeRs 30/-
Employer for each such employeeRs 70/-
Due Date31st January of next year

Last Date of Payment of Contribution

Every employer has to pay to the Board both the employer’s contribution and the employee’s contribution by the provisions by the 31st of January of the succeeding year, along with a statement showing full particulars in Form-F.

Interest on nonpayment or late payment of LWF

The LWF commissioner may levy a penal interest on nonpayment of the LWF as per the table below. The commissioner has to serve a notice asking for the reasons as to why an interest can not be levied and if no sufficient cause is shown, the following interest would be applicable.

PeriodRate of Interest
For the First 3 Months1% of the total amount (For each passing month) payable by the employer as of the last date prescribed in the notice sent by the Commissioner.
3 Months passed, as mentioned above1.5 % of the total amount (For each passing month) payable by the employer when he continues to default on the payment of that amount.

The employer can apply for a waiver of the penalty under the proviso of Section 9 of the act before the Welfare Commissioner within thirty days from the payment date by clearly stating the grounds for the remission of the penalty. If the Welfare Commissioner is satisfied that non-payment of dues was due to circumstances beyond the employer's control. In that case, the Welfare Commissioner shall remit a part or whole of the penalty under section 9(2) of the act. No remission shall be made without the prior sanction of the Board, if the amount of penalty to be remitted exceeds Five Hundred rupees (According to rule 10 of Andhra Pradesh LWF Rule, 1988).

Conclusion

The Andhra Pradesh Labour Welfare Board was formed to improve the conditions of employees working in the organized sector and their legal dependents. An attempt is made to present the legal position with respect to the Andhra Pradesh Labour Welfare Fund Act 1987 in simple and easy-to-understand language. The blog on Andhra Pradesh LWF is about the employer's responsibility to follow all the rules and regulations regarding the contribution payments and other dues mentioned in the act in the interest of their employees to the fund.