Reviewed 7 October 2026. Original publication date was not supplied by the archive.
For an employee covered by the relevant Haryana Labour Welfare Fund contribution provision, the 2026 employee contribution is 0.2% of salary, wages or remuneration, capped at ₹35 per month. The employer contributes twice the employee’s actual contribution, up to ₹70. The combined maximum is ₹105; that maximum is not a flat amount payable for every employee regardless of remuneration.
Which notification changed the Haryana LWF limit?
The Haryana Labour Welfare Board’s notification No. HLWB/REV/2026/3436 is dated 8 May 2026, with the revised limit effective from 1 January 2026. The date of issue and date of effect are different. The 2025 employee ceiling was ₹34; the 2026 ceiling is ₹35.
Read the official Haryana Board notification and the Haryana Government’s published explanation alongside the governing Act and the establishment’s facts. A payroll master should record both the issue date and the wage month from which the rate applies.
Haryana LWF calculation formula
| Component | Formula for a covered monthly case | Maximum |
|---|---|---|
| Employee contribution | Lower of 0.002 × relevant remuneration and ₹35 | ₹35 |
| Employer contribution | 2 × the employee’s actual contribution | ₹70 |
| Total contribution | Employee contribution + employer contribution | ₹105 |
0.2% means 0.002, not 0.02%. Also, “twice the employee contribution” does not mean always charge the employer ₹70. Apply the percentage and employee cap first, then calculate the employer share. Use the prescribed payment/rounding convention where fractional amounts arise.
Worked contribution examples
| Monthly remuneration | 0.2% working | Employee | Employer | Total |
|---|---|---|---|---|
| ₹10,000 | ₹20 | ₹20 | ₹40 | ₹60 |
| ₹15,000 | ₹30 | ₹30 | ₹60 | ₹90 |
| ₹17,500 | ₹35 | ₹35 | ₹70 | ₹105 |
| ₹25,000 | ₹50, restricted to the employee cap | ₹35 | ₹70 | ₹105 |
The ₹17,500 point is where 0.2% reaches the ₹35 cap. It is not an employee-coverage salary ceiling. Do not use that arithmetic point as an exemption test.
Check applicability before deducting
Identify the establishment’s coverage under the applicable Haryana law and whether the individual falls within the relevant employee definition or exclusion. A payroll designation alone is not a reliable substitute for that assessment. Then establish the relevant remuneration base and wage month.
Do not automatically apply Haryana LWF to employees at workplaces in another state merely because the corporate payroll is processed in Gurugram. Conversely, do not omit a covered Haryana employee solely because finance is based elsewhere. Keep the actual establishment and worker-location facts identifiable.
How to review January-onward differences
If a covered employee was at the old cap of ₹34 for a 2026 wage month when the new cap should apply, the illustrative difference is ₹1 employee plus ₹2 employer for that month. Over five such months it would total ₹15. That example only applies where the employee reached both relevant caps and the underlying monthly liability was otherwise correct.
An employee whose percentage-based contribution remains ₹20 does not automatically require a ₹1 increase: changing the ceiling does not change the percentage. Prepare an employee-and-month working, reconcile it to deductions and payments already made, and obtain approval for the actual correction. Do not recover the employer’s share from the employee.
Payroll and payment checks
- Retain the official notification and record 1 January 2026 as its effective date.
- Verify establishment and employee coverage, remuneration base and the period reviewed.
- Calculate the employee share using the percentage and cap, then the employer share at twice that amount.
- Reconcile month-wise payroll deductions, employer liability and amounts already paid.
- Confirm the applicable remittance/return deadline and current portal instructions separately. A monthly contribution formula does not by itself establish a monthly filing deadline.
- Keep payment evidence and any arrears working with the approved payroll version.
Frequently asked questions
Is ₹35 mandatory for every employee?
No. For a covered case it is the maximum employee contribution, not the automatic contribution. Apply 0.2% to the correct remuneration base and restrict it to ₹35.
Does the employer always contribute ₹70?
No. The employer contributes twice the actual employee amount. An employee contribution of ₹30 produces an employer contribution of ₹60.
Should the change begin in January or May?
The notification is dated 8 May 2026, but specifies effect from 1 January 2026. Check prior 2026 months for any actual difference rather than changing only the month in which the document was received.
Is this the same rule in every state?
No. LWF coverage, rates, periods and payment arrangements differ. Use the state-wise LWF reference library and the notification applicable to the actual establishment.
For a company-level reconciliation or recurring review, see PT and LWF compliance services. This guide explains the published formula and examples; it does not determine coverage for a particular employee without the relevant facts.