🇮🇳 India: Employee Welfare and Statutory Contributions Update

India has introduced updates related to employee welfare benefits and statutory contributions applicable to employees based in India.

Below is a summary of the Menstrual Leave benefit available to eligible employees, as well as the Labour Welfare Fund (LWF) implementation.

Menstrual Leave (India)

Menstrual leave is provided as an employer-sponsored welfare benefit for eligible employees in India, aligned with local best practices around employee wellbeing.

Eligibility & Entitlement

• Applies to female employees aged 18 to 52

• 1 paid day of menstrual leave per month

• Up to 12 paid days per year

• Leave must be used within the month and cannot be carried forward

Key Details

• No medical certificate or documentation is required

• The reason for the leave is treated as confidential

• Menstrual leave is separate from and in addition to other leave types (such as sick leave, annual leave, or maternity leave)

• Eligibility starts from the month following the employee’s joining date

This benefit does not impact existing leave balances.

Labour Welfare Fund (LWF)

The Labour Welfare Fund (LWF) is a statutory contribution mandated by state governments in India, designed to support employee welfare initiatives such as healthcare, education, housing, and social security benefits. The LWF is collected as a one-time annual contribution, typically processed in December.

This is the first instance of LWF being implemented for employees under this setup, and there were no prior LWF deductions.

Contribution breakdown

• Employee contribution: INR 50 ( already deducted from December salaries)

• Employer contribution: INR 100 (borne by the employer and planned to be invoiced in February)

The total contribution will be remitted to the relevant state authorities within prescribed timelines.

Questions?

If you have questions about eligibility, deductions, or how these updates apply to your team in India, our Support Team is happy to help.