Labour Welfare Fund

Labour Welfare Fund Labour welfare fund is a statutory contribution managed by individual state authorities. It is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living. To justify the above statement, various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from state to another. The state labour welfare board determines the amount and frequency of the contribution. The contribution and periodicity of remittance differs with every state. In some states the periodicity is annual (Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc) and in some states it is to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra etc). Scope of Labour Welfare Fund Act The scope of this Act is extended to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral etc. State specific Labour Welfare Funds are funded by contributions from the employer, employee and in few states, the government also. The below table depicts the states in which the Act has been implemented and not implemented: Applicable States Andhra Pradesh Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Karnataka Kerala Madhya Pradesh Maharashtra Odisha Punjab Tamil Nadu Telangana West Bengal Not Applicable States Central Andaman and Nicobar Islands Arunachal Pradesh Assam Bihar Dadra and Nagar Haveli Daman and Diu Himachal Pradesh Jammu and Kashmir Jharkhand Ladakh Lakshadweep Manipur Meghalaya Mizoram Nagaland Puducherry Rajasthan Sikkim Tripura Uttar Pradesh Uttarakhand The Labour Welfare Fund Act is not applicable to all category of employees working in the establishment. It depends upon the wages earned and designation of the employee. Also, one needs to check the total number of employees working before extending this Act to their establishment. The applicability of the Act based on the number of employees may differ depending upon state specific Act. Labour Welfare Fund Expenditure In general the money in the Fund may be utilized by the Board to defray expenditure on the following: Educational facilities for the children of the workers. Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families. Transport facilities to the workers for commuting to work. Recreational facilities in form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment. Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates. Excursions, tours and holiday homes. Home industries and subsidiary occupations for women and unemployed persons. Reading rooms and libraries. Vocational training. Nutritious food to children of employees.