Labour Welfare Fund

A Labour Welfare Fund (LWF) is a social security mechanism established by State Governments and maintain by Labour Welfare Board to promote the welfare and well-being of laborers, particularly those comes under low-income sectors.

Objective

The primary objective of a Labour Welfare Fund is to provide financial assistance and support to workers and their families, addressing their social, economic, and health-related needs.

Scope & Purposes

The benefits of these funds can vary from one state to another, but they generally serve the following purposes:

  • Financial Assistance: LWFs often provide financial aid to laborers during times of need, such as illness, disability, maternity, or death. This assistance can include medical expenses, maternity benefits, funeral expenses, and disability pensions. subsidiary occupations for women and unemployed persons.
  • Education and Skill Development: Many LWFs allocate funds for the education of workers’ children, including scholarships, grants, and vocational training programs, Reading room and libraries. This helps improve the long-term prospects of the labor force.
  • Woman and infant welfare: LWF extended its assistance to woman and infant welfare as part of its broader mission to improve the well-being of laborers and their families. Nutritious food for labor’s children.
  • Housing: In some regions, LWFs may facilitate housing schemes or offer subsidies to improve the living conditions of workers and their families.
  • Healthcare: LWFs often support healthcare services by establishing or subsidizing medical facilities, clinics, and dispensaries. They may also provide health insurance coverage for workers and their dependents.
  • Recreational Facilities: Some LWFs promote recreational and cultural activities by setting up sports clubs, cultural centers, libraries, Excursions, Tours and Holiday Homes. These initiatives contribute to the overall well-being and quality of life for laborers and their families.
  • Legal Aid and Counseling: LWFs may offer legal assistance and counseling services to help workers navigate labor disputes, workplace harassment, and other employment-related issues.
  • Retirement Benefits: In certain cases, LWFs also contribute to retirement and pension schemes, ensuring that workers have financial security in their old age.
  • Emergency Relief: LWFs often step in to provide relief during natural disasters or other emergencies, helping affected workers and their families rebuild their lives.

Applicability of LWF

The applicability of a Labor Welfare Fund (LWF) varies from one State to another and is often determined by the specific labor laws and regulations of the region. The applicability of an LWF can also depend on factors such as the Nature and type of employment, the industry, and the income level of workers, Geographical location, Size of the Workforce. Here are some common aspects that influence the applicability of an LWF.
It’s important to be aware of LWF applicability. Compliance with LWF regulations is crucial to ensure that workers receive the benefits and support they are entitled to, and non-compliance can result in legal penalties.
Sr No Applicable States Sr No Non-Applicable States
1 Andhra Pradesh 1 Central
2 Chandigarh 2 Andaman and Nicobar Islands
3 Chhattisgarh 3 Arunachal Pradesh
4 Delhi 4 Assam
5 Goa 5 Bihar
6 Gujarat 6 Dadra and Nagar Haveli
7 Haryana 7 Daman and Diu
8 Karnataka 8 Himachal Pradesh
9 Kerala 9 Jammu and Kashmir
10 Madhya Pradesh 10 Jharkhand
11 Maharashtra 11 Ladakh
12 Odisha 12 Lakshadweep
13 Punjab 13 Manipur
14 Tamil Nadu 14 Meghalaya
15 Telangana 15 Mizoram
16 West Benga 16 Nagaland
    17 Puducherry
    18 Rajasthan
    19 Sikkim
    20 Tripura
    21 Uttar Pradesh
    22 Uttarakhand

Frequency for Remittance

Every state has its own contribution and remittance frequency. Different states have different frequency for contribution like-Monthly, Half-Yearly and Annually.
welfare
Sr No State Applicability Contribution (in INR) by Frequency & Date of Deduction Last date for Contribution Submission Form Act Rule Exception
Employee Employer Total
1 Andhra Pradesh Any Employer/Esteblishment employing 1 or more employees 30 70 100 Yearly - 31 December 31-Jan Form F Andhra Pradesh Labour Welfare Fund Act, 1987 Tha Andhra Pradesh Labour Welfare Fund Rules, 1988 Managerial capacity or who is employed as an apprentice or on part-time basis
2 Chandigarh Any Employer/Establishment employing one or more employees/persons
5 20 25 Monthly 15th October
15th April
- The Punjab Labour Welfare Fund Act,1965
The Punjab Labour Welfare Fund Rules,1966
All Covered
3 Chhattisgarh Any Employer/Establishment employing one or more employees/persons
15 45 60 Half Yearly
15th July
15th January
FORM A
The Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982
The Chhattisgarh Pradesh Shram Kalyan Nidhi Rules, 1984
All Covered
4 Delhi Any Employer/Establishment employing five or more employees/persons
0.75 2.25 3 Half Yearly
15th July
15th January
FORM A
The Bombay Labour Welfare Fund Act, 1953
The Delhi Labour Welfare Fund Rules, 1997
Managerial or supervisory capacity and drawing wages exceeding Rupees Two thousand Five Hundred only per month
5 Goa Any Employer/Establishment employing one or more employees/persons
60 180 240 Half Yearly
31st July
31st January
FORM A
The Goa Labour Welfare Fund Act, 1986
Goa Labour Welfare Fund, Rules 1990
Managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred only per month
6 Gujarat Any Employer/Establishment employing ten or more employees/persons
6 12 18 Half Yearly
15th July
15th January
FORM A-1
The Gujarat Labour Welfare Fund Act, 1953
The Labour Welfare Fund (Gujarat) Rules, 1962
Managerial or supervisory capacity and drawing wages exceeding rupees three thousand and five hundred per month
7 Haryana Any Employer/Establishment employing ten or more employees/persons
31 62 93 Monthly Last Day Of The Month (Also being accepted Quarterly
Half Yearly
Yearly in certain cases)
- The Punjab Labour Welfare Fund Act,1965
The Punjab Labour Welfare Fund Rules,1966
All Covered
8 Karnataka Any Employer/Establishment employing fifty or more employees/persons
20 40 60 Yearly 15th January
FORM D
The Karnataka Labour Welfare Fund Act, 1965
The Karnataka Labour Welfare Fund Rules, 1968
All Covered
9 Kerala Any Employer/Establishment employing one or more employees/persons
50 50 100 Monthly 5th Of Every Month FORM 6
Form - 5
The Kerala Shops And Commercial Establishments Workers Welfare Fund Act,2006
The Kerala Shops And Commercial Establishments Workers Welfare Fund Scheme, 2007
All Covered
10 Madhya Pradesh Any Employer/Establishment employing one or more employees/persons
10 30 40 Half Yearly
15th July
15th January
FORM A The Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
The Madhya Pradesh Shram Kalyan Nidhi Rules, 1984
Managerial or supervisory capacity and drawing wages exceeding Rupees Ten Thousand only per month
11 Maharashtra Any Employer/Establishment employing five or more employees/persons 12 36 48 Half Yearly
15th July
15th January
FORM A-1 The Maharashtra Labour Welfare Fund Act, 1953
The Maharashtra Labour Welfare Fund Rules, 1953
Managerial or supervisory capacity and drawing wages upto Rupees Three Thousand only per month
12 Odisha Any Employer/Establishment employing twenty or more employees/persons
10 20 30 Half Yearly
15th July
15th January
FORM F The Odisha Labour Welfare Fund Act, 1996
The Odisha Labour Welfare Fund Rules, 2015
Managerial or supervisory capacity and who is employed as an apprentice or on part-time basis
13 Punjab Any Employer/Establishment employing five or more employees/persons
5 20 25 Monthly Last Day Of Month - The Punjab Labour Welfare Fund Act,1965
The Punjab Labour Welfare Fund Rules 1966
All Covered
14 Tamil Nadu Any Employer/Establishment employing twenty or more employees/persons
20 40 60 Yearly 31st January
FORM A
The Tamil Nadu Labour Welfare Fund Act, 1972
The Tamil Nadu Labour Welfare Fund Rules, 1973
Managerial or supervisory capacity and drawing wages exceeding rupees Fifteen thousand per month or who is employed as an apprentice or on part-time basis
15 Telangana Any Employer/Establishment employing twenty or more employees/persons
2 5 7 Yearly 31st January
FORM F
Telangana Labour Welfare Fund Act, 1987
Telangana Labour Welfare Fund Rules, 1988
Managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred per month
16 West Benga Any Employer/Establishment employing ten or more employees/persons
3 15 18 Half Yearly
15th July
15th January
FORM D The West Bengal Labour Welfare Fund Act, 1974
The West Bengal Labour Welfare Fund Rules, 1976
Managerial or supervisory capacity and drawing wages exceeding rupees thousand six hundred per month

Conclusion

LWFs not only protect the rights of laborers but also contribute to the broader development of societies. By investing in the health, education, and economic stability of workers, LWFs foster social equity and economic progress. To remain effective, these funds must adapt to evolving labor landscapes, maintain transparency, and be accountable for fund usage, ensuring their continued role as vital pillars of labor welfare in the modern world.
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