Maharashtra Labour Welfare Fund (MLWF) Rates & Compliance Guide (2026)
The Maharashtra Labour Welfare Fund (MLWF) is governed by The Bombay Labour Welfare Fund Act, 1953 (as applicable to the State of Maharashtra) and managed by the Maharashtra Labour Welfare Board (MLWB).
MLWF is a mandatory statutory deduction applicable to commercial establishments, IT/ITeS parks, shops, and factories located anywhere across Maharashtra.
Governing Statute: The Bombay Labour Welfare Fund Act, 1953
Regulatory Authority: Maharashtra Labour Welfare Board (MLWB), Mumbai
Official Portal: Mahalbc E-Services Portal
📊 Revised Contribution Rates & Wage Slabs (2026)
The Government of Maharashtra periodically revises the employee and employer contribution slabs under Section 6BB of the Act. Deductions are effected bi-annually on the gross monthly wages earned during the months of June and December.
| Monthly Gross Wage Slabs | Employee Contribution | Employer Contribution | Total Remittance | Deduction Cycle | Remittance Due Date |
|---|---|---|---|---|---|
| Gross Salary up to ₹3,000 / month | ₹25.00 | ₹75.00 | ₹100.00 | Half-Yearly (June & December) | 15th July (for June) & 15th January (for Dec) |
| Gross Salary above ₹3,000 / month | ₹75.00 | ₹225.00 | ₹300.00 | Half-Yearly (June & December) | 15th July (for June) & 15th January (for Dec) |
Under the Maharashtra statutory schedule, the employer's matching share is exactly three times (3×) the employee's deducted share.
📅 Statutory Calendar & Remittance Deadlines
Contributions are deducted strictly in respect of employees whose names feature on the company's muster roll on 30th June and 31st December of every calendar year:
| Period Covered | Deduction Salary Month | Statutory Due Date for Online Payment | Prescribed Return Form |
|---|---|---|---|
| 1st Half (Jan – Jun) | June Salary | 15th July | Form A-1 cum Challan |
| 2nd Half (Jul – Dec) | December Salary | 15th January | Form A-1 cum Challan |
🏢 Applicability & Exemption Criteria
1. Covered Establishments
- Every factory registered under Section 2(m) of the Factories Act, 1948.
- Every shop or commercial establishment registered under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 that employs 5 or more employees.
- Motor transport undertakings and transport agencies operating within the territory of Maharashtra.
2. Covered Employees
- All permanent, temporary, contractual, and probationary staff appearing on the muster rolls of the establishment on June 30 or December 31.
- Trainees and retainers who receive regular wages/stipends outside of the Apprentices Act.
3. Exemptions
- Managerial / Supervisory Personnel: Any employee discharging functions mainly of a managerial nature, or employed in a supervisory capacity whose monthly basic salary exceeds the statutory ceiling (or who possesses executive administrative hiring/firing authority).
- Bona Fide Apprentices: Apprentices engaged under a registered contract pursuant to the Apprentices Act, 1961.
💻 Online Challan Payment & Return Filing Process
- Log in to Portal: Access the official Maharashtra Labour Welfare Board Online Portal.
- Registration / Profile Validation: Ensure the establishment's LIN (Labour Identification Number), Shop Act Registration Number, or Factory License is validated.
- Upload Employee Headcount: Enter headcount segregated by wage brackets:
- Count of employees earning up to ₹3,000.
- Count of employees earning above ₹3,000.
- Generate E-Challan: The system automatically calculates total employee and employer liability.
- Net Banking / Payment Gateway: Remit the dues via GRAS or the integrated payment gateway before the statutory 15th cutoff.
- Download Form A-1: Retain the digitally stamped Form A-1 and payment receipt for labour inspection audits.
⚠️ Penalties for Non-Compliance
- Interest on Delayed Payment: Simple interest at 18% per annum is levied on overdue contributions from the 16th of July or January until the actual date of realization.
- Prosecution & Recovery: Persistent non-compliance enables the Welfare Commissioner to issue recovery certificates to the District Collector to recover unpaid dues as arrears of land revenue.
- Statutory Fines: Fine up to ₹2,500 for the first offense, with recurring daily fines for continuing defaults.
❓ Frequently Asked Questions (FAQs)
Is MLWF deducted if an employee resigns on 20th June?
No. MLWF liability attaches only if the employee's name appears on the register of employees or muster roll as of 30th June (for the first half) or 31st December (for the second half). If an employee is relieved before the cutoff date, no deduction is made.
What is the employer contribution ratio for Maharashtra LWF?
The employer contribution is fixed at 3:1 (thrice the employee's share). For employees earning above ₹3,000, the employee pays ₹75 and the employer contributes ₹225, making a total remittance of ₹300 per semi-annual cycle.
Are contract employees covered under the principal employer's MLWF?
Contract laborers deployed through manpower supply contractors must be covered. Either the immediate manpower contractor remits the MLWF under their registered code, or the principal employer ensures compliance by deducting and remitting under their establishment code.