Maharashtra Labour Welfare Fund (MLWF) 2026 – Everything Employers

Need to Know:-

The Maharashtra Labour Welfare Fund (MLWF) is a statutory welfare scheme designed to improve the social, educational, medical, and recreational wellbeing of employees working in Maharashtra. Every eligible employer is required to deduct the employee’s contribution, add the employer’s share, and deposit the total contribution with the Maharashtra Labour Welfare Board within the prescribed timeline.

As businesses continue to strengthen payroll compliance in 2026, understanding the latest MLWF provisions has become essential for HR professionals, payroll teams, finance departments, and business owners

1.What is the Maharashtra Labour Welfare Fund (MLWF)?

The Maharashtra Labour Welfare Fund is governed by the Maharashtra Labour Welfare Fund Act, 1953. The fund is administered by the Maharashtra Labour Welfare Board and is utilized for various employee welfare initiatives such as:

• Medical assistance
• Educational scholarships
• Recreational facilities
• Skill development programs
• Welfare centres
• Financial assistance for workers
• Community welfare activities

The objective is to enhance the quality of life of workers through collective contributions from employers and employees.

2.Latest MLWF Update for 2026

There has been no revision in the contribution rates for 2026. The contribution structure introduced through the Maharashtra Labour Welfare Fund (Amendment) Act, 2024 continues to remain applicable.

>MLWF Contribution Rate (2026)

Contribution Amount:

Employee Contribution ₹25

Employer Contribution ₹75

Total Contribution ₹100 per employee

The employer contributes three times the employee contribution.

3.Who is Covered Under MLWF?

~The Act generally applies to:

• Shops and establishments
• Factories
• Commercial establishments
• Companies
• Partnership firms
• LLPs
• Offices
• Educational institutions (where applicable)
• Other establishments covered under the Act

~Applicability

MLWF is applicable to establishments employing 5 or more employees in Maharashtra.

Generally, employees working in managerial or specified supervisory capacities are excluded as per the provisions of the Act.

4.MLWF Contribution Frequency

MLWF is deposited twice every year (Half-Yearly).

~First Half-Year

• Wage Cut-off Date: 30 June
• Due Date for Payment: 15 July

~Second Half-Year

• Wage Cut-off Date: 31 December
• Due Date for Payment: 15 January

Employers should ensure timely payment to avoid interest and penalties.

5.MLWF Compliance Process

~The compliance process generally includes:

>Identify eligible employees.

>Deduct ₹25 from each eligible employee.

>Add employer contribution of ₹75.

>Prepare the statutory return.

>Deposit the contribution through the prescribed online portal.

>Maintain contribution records for inspection.

Proper payroll configuration helps ensure accurate deductions and timely filing.

6.Why MLWF Compliance Matters

Non-compliance may result in:

• Interest on delayed payments
• Monetary penalties
• Compliance notices
• Additional scrutiny during labour inspections
• Increased compliance risks during statutory audits

Maintaining timely compliance also demonstrates responsible employment practices.

~Benefits of the Labour Welfare Fund

The collected fund supports several welfare initiatives for workers, including:

• Educational support
• Medical assistance
• Women’s welfare programmes
• Recreational activities
• Skill enhancement programmes
• Labour welfare centres
• Financial support for eligible workers

These initiatives contribute to improving employee welfare and workplace satisfaction.

7.Best Practices for Employers in 2026

~To remain compliant:

• Review employee eligibility before each contribution cycle.
• Update payroll software with the latest contribution rates.
• Maintain proper deduction records.
• File contributions before statutory due dates.
• Keep documentation ready for labour inspections.
• Monitor updates issued by the Maharashtra Labour Welfare Board.