Labour Welfare
Fund

LABOUR WELFARE FUNDS

Labour welfare  funds refers to all the facilities for labours to improve their working conditions, provide social security, and raise their standard of living. Several state legislatures have enacted an Act exclusively focusing on the welfare of the workers, known as the Labour Welfare Funds Act. We tell you all about it here!

Labour Welfare Funds is contributed by Employer, Employee and in some states by the Government as well. Separate (State) Labour Welfare Fund Act and (State) Labour Welfare Fund Rule are framed for different states & Union Territories. 

How Does Welfare Fund Help Labours?

Labour Welfare Fund (LWF) help labourers in many different ways.

Improving Standard of Living

Providing nutritious food and educational facilities to the children of employees, medical facilities to the private and public sector workers and their families, housing facilities at concessional schemes and rates, etc.

Offering Better Work Conditions

Furnishing facilities for workers and employees such as commuting to work (transport), reading rooms, libraries, vocational training programs, excursions and tours, recreational facilities at the workplace, etc.

Providing Social Security

Arranging medical treatments, schemes for certain industries and subsidiary occupations for women, unemployed persons, etc.

The amount of fund, rate, and periodicity of contribution is decided by the respective State Labour Welfare Board. The contribution may be made every month or once in six months (half-yearly) or once in a year (annually) as per the prescribed quantum and remitted to appropriate Labor Welfare Fund Board in prescribed Form before the due date specified under the Act. 

Currently, this Act is enacted and applicable in the States of Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana & West Bengal. More about these states here.

Labour Welfare Fund Applicability

This fund is applicable to certain establishments based on the total number of employees, the wages earned and the designation of the employee. All the parameters are prescribed under corresponding State Legislation.

Click here for an overview of the Fund contributions prescribed across the States. RTI release by the government of India for Labour Welfare: Here.