On the Pay Groups tab, find the pay group you want to configure the salary structures for if you have multiple pay groups configured, and click the Configure icon.

From the Pay Group Configuration page, select the Contributions tab. Click on the three dots on the contributions page and select Update LWF Settings. 

The Labour Welfare Fund (LWF) Settings window contains options to help you manage how LWF contributions work for the pay group. 

On the top of the window, you can enable or disable LWF for the pay group using the toggle button. 

Employer Contribution

You can determine how the employer contribution to LWF works for the pay group. 

• If the employee's contribution to LWF is a part of the employee's annual salary, select the Yes, Employer’s contribution of LWF forms a part (and is deducted) from Annual Salary of an employee checkbox. 
• If it is not a part of the annual salary and is paid over and above this, then select the No, Employer’s contribution of LWF is paid by employer, over and above the Annual Salary of an employee checkbox.

If the employer's contribution is a part of the employee's annual salary, you can also choose to hide this from the employee's pay slip. The amount of the employer's contribution will be removed when calculating the employee's gross earnings. 

Additional Settings

There are a few additional settings that you can decide on.

Include Bonuses and One-Time payments in gross for LWF eligibility calculation

You can choose if you want to include the one-time payments and bonuses that the employee receives as a part of the gross salary when calculating the eligibility for LWF. If you choose this option, the gross salary will include these amounts.

Include Bonuses and One-Time payments in gross for LWF Contribution calculation

When calculating the actual LWF value to be deducted, you can decide if bonuses and one-time payments need to be a part of this or not. Selecting this option will include bonuses and other ad-hoc payments while calculating the gross salary based on which LWF deduction is calculated. 

Prorate LWF contribution based on Employees’ Joining Date

You can also choose to prorate LWF contributions based on the joining date of the employee. If the employee joins your organization during the contribution period, the LWF will be calculated based on the number of days the employee works during the contribution period if they are eligible for LWF. 

Once you've made the necessary selections, click Update to save the settings.

And that's how you update LWF contribution settings for a pay group. Hope this document helped you. If you have more questions regarding LWF contributions, get in touch with our product experts and we will be happy to help you!