Introduction
The Labour Welfare Fund is an initiative by the Government of India to extend a measure of social assistance to employees in the unorganized sector. It is a kind of financial assistance for workers to improve their working conditions and standard of living.
Out of the 36 states and Union Territories, only 16 States/UTs have so far implemented this Act. As per the Act, the employees and employers contribute towards this Fund, and in some states, the state also contributes. Since the Fund is managed by independent states, the rules vary from one state to another. Any business/industry that satisfies the criteria of number of employees required by the Act to come under its purview has to register with the concerned Labour Department of the state.
Eligibility
In Tamil Nadu, if a company has 5 or more employees on its payroll then it has to register with the Labour Department. In Kerala, it is 2 or more employees and in Gujarat, it is 10 or more employees. Each State/UT has its own rules to become eligible for registration.
The Act is not applicable to all categories of employees, and depends on the wages earned and the designation of the employees. Those employees who are in the managerial or supervisory position and drawing salary that is more than what is stipulated in the Act are not eligible for the Fund. This will vary from state to state.
States/UTs that have implemented the LWF Act
The following States and Union Territories have implemented the Labour Welfare Fund Act:
- Andhra Pradesh
- Chandigarh
- Chattisgarh
- Delhi
- Goa
- Gujarat
- Haryana
- Karnataka
- Kerala
- Maharashtra
- Madhya Pradesh
- Odisha
- Punjab.
- Tamil Nadu
- Telengana
- West Bengal.
States/UTs that have not implemented the LWF Act
The following States and Union Territories have not implemented the Labour Welfare Fund Act:
- Andaman & Nicobar Islands
- Arunachal Pradesh
- Assam
- Bihar
- Dadra and Nagar Haveli
- Daman and Diu
- Himachal Pradesh
- Jammu and Kashmir
- Jharkhand
- Lakshadweep
- Manipur
- Megalaya
- Mizoram
- Nagaland
- Pondicherry
- Rajasthan
- Sikkim
- Tripura
- Uttar Pradesh
Amount of Contribution
The amount of contribution also varies from state to state. The following table provides details of the contribution period, contribution amount and due dates for remittance of the contribution.
| State/UT | Contribution regularity | Contribution Months | Employee Contribution | Employer Contribution | Contribution Total | Return & Due Date |
| Andhra Pradesh | Annual | December | 30 | 70 | 100 | Form F
Jan 31 |
| Chandigarh | Monthly | April-March | 5 | 20 | 25 | Nil
Oct.15 Apr.15 |
| Chattisgarh | Half-Yearly | June- Dec. | 15 | 45 | 60 | Form A
31 July 31 Jan |
| Delhi | Half-Yearly | June-Dec. | 0.75 | 2.25 | 6 | Form A
15 July 15 Jan. |
| Goa | Half-Yearly | June-Dec | 60 | 180 | 240 | Form A
31 July 31 Jan. |
| Gujarat | Half-Yearly | June-Dec | 6 | 12 | 18 | Form A1
31 July 31 Jan. |
| Haryana | Monthly | Jan – Dec | 31 | 62 | 93 | Nil
31 Dec |
| Karnataka | Annual | December | 20 | 40 | 60 | Form D
15 Jan. |
| Kerala | Half-Yearly | June-Dec | 4 | 12 | 16 | Form A
15 July 15 Jan |
| Maharastra | Half-Yearly | June-Dec | 6/12 | 18/36 | 24/48 | Form A1
15 July 15 Jan |
| Madhya Pradesh | Half-Yearly | June-Dec | 10 | 30 | 40 | Nil
15 July 15 Jan |
| Odisha | Half-Yearly | June-Dec | 20 | 40 | 60 | Form F
15 July 15 Jan |
| Punjab | Monthly | April-March | 5 | 20 | 25 | Nil
15 Oct 15 April |
| Tamil Nadu | Annual | December | 20 | 40 | 60 | Form D
15 Jan |
| Telengana | Annual | December | 2 | 5 | 7 | Form F
31 Jan |
| West Bengal | Half-Yearly | June-Dec | 3 | 15 | 18 | Form D
15 July 15 Jan. |
How is the Labour Welfare Fund utilized?
The Labour Welfare Fund is utilized by the Labour Welfare Board to cover the following activities.
- To provide Libraries
- For Vocational Training
- To provide adequate nutrition to children
- Towards transport facilities
- For the education of children, through scholarships
- To provide Medical facilities for employees and dependents
- To provide entertainment facilities to the employees – sports, art forms, music
- To provide vacation facilities for employees and their families
- For providing subsidiary occupation for women and unemployed persons.
- To provide assistance for Natural and Accidental Death. In Tamilnadu an Accidental death Assistance of ₹ 1,00,000 and ₹5,000 towards funeral expenses is provided. When death is natural, a sum of ₹25,000/- assistance along with ₹5,000 towards funeral expenses is provided.
Conclusion
The Labour Welfare Fund Act is an important legislation to protect the interests of the workers, especially in the unorganized sector. However, only 16 states and UTs have so far implemented the Act. Though it has not been implemented in all the States and Union Territories in the country, many states and UTs are in the process of implementing them shortly.
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