Labour welfare fund collection

Question

Labour welfare fund collection

30-Jun-2026 (In Tax Law)

I am enrolled with an EoR company which provides payroll & HR services to MNC who aren't registered in India. This EoR company is registered in Gurgaon, Haryana. But I am working from a shared workspace given by the remote MNC company from Noida, U.P.. Also in my employment agreement it's written as Remote employee. My EoR company is deducting LWF from my payroll which I think is not applicable in U.P. Please suggest if LWF deduction is right or wrong.

Answers (1)

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Advocate Ajay Shukla LawRato · Accepted Answer · 2026-07-28T09:49:01+05:30

Answer #1

Labour Welfare Fund (LWF) is governed by State-specific laws and its applicability depends on the establishment, the employer's registration, and the State law under which the employer is covered. Since your Employer of Record (EoR) is registered in Gurugram, Haryana, it may be deducting LWF under the Haryana Labour Welfare Fund Act, even if you are working remotely from Noida, U.P. However, if your employment is legally governed by U.P. labour laws and the establishment is not covered under the Haryana Act, the deduction may require further examination. You should seek clarification from your employer regarding the legal basis of the deduction and the State under which your employment is registered. If the explanation is unsatisfactory, you may approach the concerned Labour Department or consult a labour law practitioner after reviewing your employment agreement and payroll records.

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