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Regulatory Analysis • Pune Corporate Advisory

MLWF Late Fee Slabs, Compounding Interest & Notice Rectification in Pune (2026)

KOKJAGUAR Advisory March 30, 2026 4 Min Read

Handling MLWF Arrears and Labor Department Show-Cause Notices

When an establishment in Pune neglects to remit its bi-annual labor welfare contributions for multiple filing cycles, the Maharashtra Labour Welfare Board issues formal demand notices under Section 6B of the Act. Continued default can lead to recovery warrants issued through the Revenue Recovery Commissioner (Collector of Pune), treating unpaid welfare dues as arrears of land revenue.

KOKJAGUAR Consultancy audits historical records and submits settlement petitions to the Welfare Commissioner. Contact our MLWF advisory desk in Magarpatta City or view our complete MLWF guide.

Statutory Compounding Interest Formula

Under Section 6B(2), delayed contributions incur interest calculated as follows:

  • First 3 Months of Delay: Simple interest of 1.5% per month.
  • Subsequent Delay Beyond 3 Months: Compounding interest of 2.0% per month until full payment is realized.
  • Provisional Recovery: The Board may levy additional damages up to 25% of the total defaulted amount.
Got Questions?

Frequently Asked Questions

The Welfare Commissioner holds discretionary authority to waive or reduce penal damages if the employer demonstrates genuine commercial distress and clears all principal arrears.
Yes, upon clearance of dues and submission of online payment receipts to the inspecting Welfare Officer, the inspection show-cause notice is formally closed.
Most notices can be resolved through online payment and written reply. A personal hearing is only mandated in cases of protracted default or formal summons.

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