Labour Welfare Fund 
Purpose
This component computes the contribution towards Labour Welfare Fund (LWF).
LWF is a statutory contribution. The state authorities determine the rate of contribution and frequency of contribution towards LWF.
Features
· Other Statutory Deductions infotype (0588), LWF (Labour Welfare Fund) subtype (0002)
In this infotype, you select the eligibility of an employee towards LWF such as the LWF frequency, LWF computation rates and the Validity date.
· Labour Welfare Fund legal reports (HINCLWFI)
Using this report you can generate the LWF form for submission to the authorities. The SAP system generates the LWF statements in the format prescribed by the concerned state authority.
· LWF Computations
The states specify their individual rates for LWF computation, the frequency of LWF contribution and Validity Date for LWF contributions.
For example, the LWF contribution frequency in Tamil Nadu is annual and it takes place in the ninth period. The validity date for Tamil Nadu is 31st December. In Kerala, the deduction frequency is bi-annual, and it takes place in the third period and the ninth period. The third period has the validity date as 30th June.
You can configure details through the IMGunder Payroll India ® Statutory Social Contribution ® Labour Welfare Fund.
· Termination
The method of computing LWF in case of a termination differs from one state to another. The individual states also specify the method of computing LWF contributions, in case of a termination.
For example, if an employee in Kerala leaves the organization before 30th June, the system will not compute the LWF contribution for the employee. In the case of Tamil Nadu however, the system will compute the LWF contribution even if the employee leaves before the 31st December.
· Retrospective LWF calculations
A retrospective change in Other Statutory Deductions infotype (0588), LWF (Labour Welfare Fund) subtype 0002 does not result in retroactive LWF calculations.
· User Exit
In the Standard SAP system, you can define the Labour Welfare Groups for the employees based on their default Personnel Area and Personnel Subarea.
If you wish to override the default LWF Personnel Subarea grouping, you can do so through a customer exit.
For more information, see the IMGunder Payroll India ® Statutory Social Contribution ® Labour Welfare Fund ® User Exit: Determine Personnel SubArea Grp for ESI and LWF.