The Haryana Labour Welfare Board has revised the Labour Welfare Fund contribution cap effective 1 January 2026. The revision is documented in Notification No. HLWB/REV/2026/3436, dated 8 May 2026, signed by Anil Vij, Labour Minister-cum-Chairman of the Haryana Labour Welfare Board.
Under this notification, the employee contribution cap has been raised from Rs. 34 per month (applicable from 1 January 2025) to Rs. 35 per month effective 1 January 2026. The employer contribution remains twice the employee amount a maximum of Rs. 70 per month per employee. The contribution is made every month, making Haryana’s LWF a monthly contribution obligation.
This guide explains the exact contribution structure, the CPI-indexation mechanism, who is covered, how to calculate the contribution, and what employers in Gurugram, Faridabad, Manesar, Bahadurgarh, Panipat, Ambala, and every other Haryana district must do to stay compliant in 2026.
Need help managing Haryana LWF and all other state-specific statutory compliance? Futurex handles complete Labour Welfare Fund compliance — registration, monthly contributions, remittance, and return filing — across Haryana and all other Indian states. Free compliance check available. Call +91 9266339256.
What This Guide Covers
Official notification: download the Haryana LWF 2026 notification PDF
Exact contribution rates w.e.f. 1 January 2026 from the official notification
How the CPI-indexation mechanism works
Previous rate (2025) vs current rate (2026) comparison
Who is covered under the Punjab Labour Welfare Fund Act, 1965 (as adopted by Haryana)
How to calculate the monthly contribution correctly
Common Haryana LWF mistakes employers make
Registration and remittance process
Frequently asked questions about Haryana LWF
Official Notification: Download the Haryana LWF 2026 PDF
The contribution revision is based on the official Haryana Government notification issued by the Haryana Labour Welfare Board. Employers, HR professionals, and compliance teams can download the original document directly:
Official Notification — Haryana LWF Contribution Revision 2026
Document: Haryana Labour Welfare Board Notification
Notification No.: HLWB/REV/2026/3436
Dated: 8 May 2026
Effective From: 1 January 2026
Basis: Haryana Government Notification No. 12/LA/2019/16/3917 dated 22.02.2019, which established the CPI-indexation mechanism. Under this mechanism, the cap for 01.01.2025 was Rs. 34 and the cap for 01.01.2026 is Rs. 35.
Signed By: Anil Vij, Labour Minister-cum-Chairman, Haryana Labour Welfare Board
Governing Act: Punjab Labour Welfare Fund Act, 1965 (as adopted and applicable in Haryana)
Haryana LWF 2026: Exact Contribution Rates from the Official Notification
The notification specifies a contribution structure based on a percentage of salary with a capped ceiling. The exact mechanism, as stated in Notification No. HLWB/REV/2026/3436, is as follows:
Exact Legal Text W.e.f. 01.01.2026 (from official notification)
“(1) Each employee shall contribute to the Fund every month an amount equal to zero point two percent of his salary or wages or any remuneration subject to a limit of rupees thirty-five and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee.”
“Provided that the limit specified above shall be indexed annually to the consumer price index beginning from first of January each year.”
Haryana LWF Contribution Rates — 2025 vs 2026
| Parameter | W.e.f. 01.01.2025 | W.e.f. 01.01.2026 (Current) |
|---|---|---|
| Contribution basis | 0.2% of salary/wages | 0.2% of salary/wages |
| Employee contribution cap (per month) | Rs. 34 | Rs. 35 |
| Employer contribution (per month) | Twice employee amount = max Rs. 68 | Twice employee amount = max Rs. 70 |
| Total maximum per employee per month | Rs. 102 | Rs. 105 |
| Frequency | Monthly (contribution accrual) | Monthly (contribution accrual) |
| CPI indexation | Annually from 1st January | Annually from 1st January |
| Remittance deadline | 31 December annually | 31 December annually (or monthly online — optional) |
Important: Contribution Accrues Monthly — Remittance by 31 December
The notification explicitly states that employees and employers “shall contribute to the Fund every month” — meaning the contribution obligation and deduction from salary must happen every month. However, the statutory annual remittance deadline to the Haryana Labour Welfare Board is 31 December of each year, as specified under Section 3, 9, and 9A of the Punjab Labour Welfare Fund Act, 1965. Since July 2024 (Notification No. HLWB/REV/2024/3755-3804), the Haryana Labour Welfare Board has also made monthly online remittance available as an optional provision. Employers can choose to remit monthly online or deposit the accumulated annual amount by 31 December but the monthly deduction from employee salary is mandatory every month under both approaches.
How the CPI-Indexation Mechanism Works
The proviso in the notification states: “the limit specified above shall be indexed annually to the consumer price index beginning from first of January each year.”
This means the Haryana Labour Welfare Board reviews the contribution cap every year based on movements in the Consumer Price Index (CPI). Effective 1 January each year, a new cap comes into force. The cap was Rs. 34 from 1 January 2025. It became Rs. 35 from 1 January 2026. Each year, employers must check the Haryana Labour Welfare Board’s latest notification to confirm the applicable cap before the first payroll run of January.
The CPI-indexation mechanism is important for two reasons. First, the cap and therefore the maximum contribution — changes every year. Using last year’s cap in January creates an under-deduction from employees. Second, the change takes effect from 1 January, not from the date of the notification. The 2026 notification was published on 8 May 2026 but applies from 1 January 2026. Employers who continued with the 2025 cap (Rs. 34) through January to April 2026 owe arrears of Rs. 1 per employee per month for that period.
How to Calculate the Monthly Haryana LWF Contribution Correctly
The contribution formula has two steps. First, calculate 0.2% of the employee’s monthly salary or wages. Then, compare this amount with the cap. The contribution is the lower of the two — either the calculated 0.2% amount or the cap, whichever is smaller. The employer then contributes exactly twice whatever the employee contributes.
Worked Examples for 2026
| Employee Monthly Salary | 0.2% of Salary | Cap (Rs. 35) | Employee Contribution | Employer Contribution (2x) | Total Monthly |
|---|---|---|---|---|---|
| Rs. 10,000 | Rs. 20.00 | Rs. 35 | Rs. 20.00 (0.2% lower than cap) | Rs. 40.00 | Rs. 60.00 |
| Rs. 15,000 | Rs. 30.00 | Rs. 35 | Rs. 30.00 (0.2% lower than cap) | Rs. 60.00 | Rs. 90.00 |
| Rs. 17,500 | Rs. 35.00 | Rs. 35 | Rs. 35.00 (exactly at cap) | Rs. 70.00 | Rs. 105.00 |
| Rs. 25,000 | Rs. 50.00 | Rs. 35 | Rs. 35.00 (capped) | Rs. 70.00 | Rs. 105.00 |
| Rs. 50,000 | Rs. 100.00 | Rs. 35 | Rs. 35.00 (capped) | Rs. 70.00 | Rs. 105.00 |
Key Rule to Remember
The employee contribution is the lower of: (a) 0.2% of salary, or (b) Rs. 35. For any employee earning more than Rs. 17,500 per month, the cap applies and the employee contribution is a flat Rs. 35 per month. The employer always contributes exactly twice the employee amount — so the employer maximum is Rs. 70 per month per employee where the cap applies.
Who Is Covered Under the Punjab Labour Welfare Fund Act, 1965 (Haryana)
Haryana operates under the Punjab Labour Welfare Fund Act, 1965 adopted and applicable in the state of Haryana as confirmed by the Haryana Labour Welfare Board. The notification is addressed to “all industrial and commercial Establishments covered under the Haryana Labor Welfare Fund Act, 1965 (for the state of Haryana).” Coverage extends beyond factories to include offices, shops, service establishments, IT companies, logistics firms, and any other commercial establishment in Haryana.
Key Applicability Points
- All industrial establishments factories, manufacturing units, and industrial undertakings in Haryana with 10 or more employees.
- All commercial establishments offices, IT companies, service businesses, retail outlets, and shops covered under the applicable Shops and Commercial Establishments Act with 10 or more employees.
- All employees the notification defines “salary or wages or any remuneration” broadly. Every employee whose work is covered by the Act and who earns a salary is subject to the contribution.
- Haryana state only the Act and this notification apply exclusively within the state of Haryana. Employees working from offices in other states are not covered by this notification, even if the employer is registered in Haryana.
Haryana Has LWF Even Without Professional Tax
Haryana does not levy Professional Tax. Many employers assume that a state without PT also has no LWF. This is incorrect. The Punjab Labour Welfare Fund Act, 1965, as adopted by Haryana, is an independent legislation. LWF and PT are two entirely separate obligations with no relationship to each other. Every employer with employees working in Haryana must comply with the Haryana LWF regardless of whether PT applies or not.
Haryana LWF Registration: What Employers Must Do
Every establishment covered under the Punjab Labour Welfare Fund Act, 1965 (as applicable in Haryana) must register with the Haryana Labour Welfare Board before beginning to remit contributions. Registration must be completed before the first contribution remittance.
Registration Documents Required
- Certificate of Incorporation, Partnership Deed, or LLP Agreement
- PAN of the establishment
- Shops and Establishments registration certificate or Factory licence (Haryana)
- GST registration certificate where applicable
- List of employees with names, designations, and monthly salaries
- Bank account details of the establishment
- Authorised signatory details and specimen signature
Where to Register
Registration is done through the Haryana Labour Welfare Board via the Labour Department portal at hrylabour.gov.in or local.hrylabour.gov.in. Employers in Gurugram can additionally approach the Additional Labour Commissioner NCR, Gurugram office — specifically listed in the notification’s circulation list (Endst. No HLWB/REV/2026/3492-3697).
Monthly Compliance Process: Step-by-Step
Haryana LWF Compliance Process for Employers
Step 1 — Calculate employee contribution (every month): For each Haryana employee, calculate 0.2% of monthly salary. If the result is less than Rs. 35, that amount is the employee contribution. If the result exceeds Rs. 35, the employee contribution is Rs. 35.
Step 2 — Deduct from salary (every month): Deduct the calculated employee contribution from the employee’s net monthly salary. Show it as a separate deduction line on the payslip: “Haryana LWF Deduction: Rs. ___”
Step 3 — Calculate employer contribution (every month): The employer contribution is exactly twice the employee contribution for each employee.
Step 4 — Remit to Haryana Labour Welfare Board: Remit the combined employee and employer contributions to the Haryana Labour Welfare Board. The statutory annual deadline is 31 December. Monthly online remittance is also available as an optional provision since July 2024. Keep the payment receipt for each remittance.
Step 5 — File the annual return: By 31 January each year, forward a copy of the abstract from the register in Form-B(LW) to the Welfare Commissioner, as required under Rule 22 of the Punjab Labour Welfare Fund Rules.
Step 6 — Maintain records: Keep a contribution register (Form-A(LW)) showing employee name, monthly salary, employee contribution, employer contribution, total, and date of remittance for each month. This register is checked by Labour Inspectors during workplace inspections.
Common Haryana LWF Mistakes Employers Make
Mistake 1: Not Deducting Employee Contribution Every Month
The notification clearly states “every month” for contributions. Many employers deduct and remit only once a year in December — and critically, many do not deduct the employee share from salary every month. The correct practice is: deduct 0.2% (capped at Rs. 35) from every employee’s salary every month, accumulate the employer share, and remit the total by 31 December (or monthly via the optional online portal). Failing to deduct every month means employees have not been properly contributing through the year, which creates a reconciliation problem at the time of annual remittance.
Mistake 2: Using Last Year’s Cap in January
The CPI-indexed cap changes from 1 January each year. The 2026 notification revised the cap from Rs. 34 to Rs. 35 effective 1 January 2026, but published the notification only on 8 May 2026. Employers who continued deducting at Rs. 34 from January through April 2026 before the notification was published owe arrears of Rs. 1 per employee per month for those four months. Check the Haryana Labour Welfare Board’s website every December for the next year’s cap notification.
Mistake 3: Not Covering Haryana Employees of a Delhi/NCR-Registered Company
A company registered in Delhi, with its registered office in Noida and employees working from a Gurugram branch, must comply with Haryana LWF for its Gurugram employees. LWF applicability follows the state where the employee works not where the company is registered. Conversely, the Noida employees are not subject to Haryana LWF because Uttar Pradesh does not have an active LWF Act.
Mistake 4: Calculating the Employer Contribution Incorrectly
The employer contribution is “twice the amount contributed by such employee” not twice the cap. For an employee earning Rs. 10,000 per month, whose contribution is Rs. 20 (0.2% of Rs. 10,000, which is below the cap), the employer contribution is Rs. 40 — not Rs. 70. The employer’s contribution tracks the employee’s actual contribution, not a fixed double of the cap.
Mistake 5: Not Maintaining the Monthly Contribution Register (Form-A(LW))
Rule 22 of the Punjab Labour Welfare Fund Rules requires every employer to maintain a register of wages in Form-A(LW) and a consolidated register of unclaimed wages and fines in Form-B(LW). The employer must also forward a copy of the abstract from Form-B(LW) to the Welfare Commissioner by 31 January every year. Labour inspectors check these registers during workplace visits. An absent or incomplete register is treated as evidence of non-compliance even if actual contributions were made.
Haryana LWF vs Other States: Quick Comparison
Haryana’s LWF structure is distinct from most other Indian states. Understanding these differences helps multi-state employers configure payroll correctly for each location.
| State | Contribution Structure | Employee Amount | Employer Amount | Frequency / Remittance |
|---|---|---|---|---|
| Haryana (2026) | 0.2% of salary, cap Rs. 35 | Up to Rs. 35/month | Up to Rs. 70/month (2x employee) | Monthly deduction; remittance by 31 Dec (or monthly online — optional) |
| Maharashtra | Fixed per employee | Rs. 25 | Rs. 75 | Half-yearly (June & December) |
| Karnataka | Fixed per employee | Rs. 50 | Rs. 100 | Annual (December; pay by 15 January) |
| Tamil Nadu | Fixed per employee | Rs. 20 | Rs. 40 | Annual (December; return by 31 January) |
| Gujarat | Fixed per employee | Rs. 6 | Rs. 12 | Half-yearly (June & December) |
| Delhi | Slab-based | Varies by salary | Varies | Annual (by 31 March) |
Note: Haryana is unique in using a percentage-of-salary formula with a CPI-indexed annual cap, rather than a fixed per-employee amount. This means the actual contribution varies by salary — unlike Maharashtra and Karnataka where the same amount applies to every employee regardless of salary level.
Frequently Asked Questions About Haryana LWF
What is the Haryana LWF contribution rate effective 1 January 2026?
Effective 1 January 2026, as per Notification No. HLWB/REV/2026/3436 dated 8 May 2026, the employee contribution is 0.2% of salary subject to a cap of Rs. 35 per month. The employer contributes twice the employee amount every month maximum Rs. 70. For an employee earning more than Rs. 17,500 per month, the employee contribution is a flat Rs. 35 per month and the employer contribution is Rs. 70 per month. For employees earning less, the actual 0.2% amount applies and the employer contributes twice that actual amount.
Is Haryana LWF a monthly, half-yearly, or annual obligation?
Haryana LWF has two distinct timelines. The deduction from employee salary is monthly the notification explicitly states “every month.” The statutory annual remittance deadline is 31 December of each year, as specified under Section 3, 9, and 9A of the Punjab Labour Welfare Fund Act, 1965. Since July 2024, the Haryana Labour Welfare Board has also enabled optional monthly online remittance. The correct practice is to deduct from employee salary every month and either remit monthly online or accumulate and remit by 31 December annually. The Form-B(LW) abstract must be submitted to the Welfare Commissioner by 31 January every year.
What was the Haryana LWF contribution rate in 2025?
From 1 January 2025, the employee contribution cap was Rs. 34 per month and the employer contribution was a maximum of Rs. 68 per month. This was the CPI-indexed cap under Haryana Government Notification No. 12/LA/2019/16/3917 dated 22.02.2019, which established the indexation mechanism. The 2026 revision raised the cap to Rs. 35, as documented in Notification No. HLWB/REV/2026/3436 dated 8 May 2026.
Why does the Haryana LWF cap change every year?
The notification contains a proviso that the cap “shall be indexed annually to the consumer price index beginning from first of January each year.” This CPI-indexation mechanism automatically adjusts the cap to account for inflation. The Haryana Labour Welfare Board issues a revised notification each year specifying the new cap effective from 1 January. Employers must check for the updated notification at the start of every year and update payroll accordingly.
Our company has offices in both Gurugram (Haryana) and Noida (UP). How does Haryana LWF apply?
LWF applicability follows the state where each employee works. Employees working from the Gurugram office are subject to Haryana LWF regardless of where the company is registered. The employee contribution is 0.2% of salary capped at Rs. 35 per month, with the employer contributing twice that amount. Employees working from the Noida office are not subject to any LWF because Uttar Pradesh does not have an active LWF Act for private commercial establishments.
Do contract workers deployed at our Haryana establishment need Haryana LWF coverage?
The notification addresses “all industrial and commercial establishments covered under the Haryana Labor Welfare Fund Act, 1965 (for the state of Haryana).” The Act covers employees of covered establishments. Whether contract workers are covered depends on how the Act defines “employee” in the applicable context. As a matter of prudent compliance, verify the current applicability with the Haryana Labour Welfare Board directly. Erring toward coverage and making contributions for contract workers protects against any future coverage dispute.
Is Your Haryana LWF Being Deducted and Remitted Correctly?
The Haryana LWF contribution cap changed to Rs. 35 per employee per month from 1 January 2026. If your payroll system is still using last year’s cap of Rs. 34, you are already carrying arrears of Rs. 1 per employee per month from January 2026. For a company with 50 employees in Gurugram, the monthly employer + employee contribution at maximum rate is Rs. 5,250 combined. Arrears that accumulate over several months become a liability that attracts interest at 12% per annum.
Futurex Management Solutions manages complete Haryana LWF compliance registration, monthly salary-based calculation for each employee, deduction from payroll, contribution remittance, return filing, and register maintenance. We also track the annual CPI-indexed revision every January so the correct cap applies from day one of the new year.