LWF Applicability

Overview :The calculation of LWF varies from state to state, as each state has its own rules and rates for LWF. Following based calculating LWF in StaffingGo.

Below mentioned criteria play an role in the LWF computation according to the LWF Act.

 1. LWF Header in Salary Structure:

The Salary structure in StaffingGo should include a specific LWF Header. Adding this header is mandatory in the employee's mapped salary structure. If the LWF header is not included, the system will not calculate the LWF for that employee. 

2. LWF Location Based on Employee Working Location: 

The Employees working location will be considered as the LWF location. This LWF location is used to determine the applicable slab rates for calculating LWF. 

3. HR option Statutory location override:

 In cases where a statutory location override is performed through the HR option, the Statutory location will be considered as the LWF location for calculating applicable slab rates. 

4. Consider salary header for LWF Gross :

Only the salary headers that have been enabled by the user for LWF will be considered as part of LWF Gross or LWF Income. 

5. Contract-Level Salary Header Override for LWF Gross:

 In instances where there is a contract-level salary header override, any salary headers enabled by the user for LWF in contract level system consider the header override for the calculation of LWF Gross or LWF Income.

 6. Applicable Slab Rates: 

Each state has its own slab rates for LWF based on the income earned by an Employees. These rates are published by the respective state governments and are categorized based on income levels. 

7. Based On Designation mapped to Employees :

Each designation has an option to select LWF applicability while creating the designation in master level, based on that LWF will calculate in the system.