Labor Welfare Fund

Labour welfare fund is a statutory contribution managed by individual state authorities. The state labour welfare board determines the amount and frequency of the contribution. The contribution and periodicity of remittance differs with every state.

Applicability

The government has introduced the Labour Welfare Fund Act. This act has been implemented only in 16 states out of 37 states including union territories.

Benefits

The Labour Welfare Fund (LWF) is managed by the Labour Board which provides a number of welfare schemes for workers. The schemes provide support in three broad areas as follows.

• Improving Standard of Living

  • Providing nutritious food, educational facilities, and scholarships to the children of employees
  • Medical facilities to the private and public sector workers and their families
  • Housing facilities at concessional schemes and rates

• 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.

Charges

Charges and payment frequency Applicable across state vary based on local regulation. You can see the details in the below table