What is the Labour Welfare Fund?

It is a kind of financial aid for labourers to improve their working conditions, social security, and standard of living.

The Labour Welfare Fund Act includes various services, benefits and facilities for the employee by the employer.

Both the employer and the employee contribute towards this fund. But the rate and frequency of contribution and the due date differ from state to state.

In the states of Andhra Pradesh, Haryana, Karnataka, Tamil Nadu and others, it is an annual payment whereas for Gujarat, Madhya Pradesh, Maharashtra etc the payment is in June and December.

For example, in Tamil Nadu, employee contribution is Rs. 14 per annum and employer contribution is Rs. 21 per annum.

From January 2015, the maximum salary limit for this scheme is Rs. 15,000 per month. It applies to any establishment who has employed 5 or more people.

Labour Welfare Fund Applicability

The government has introduced the Labour Welfare Fund Act to provide social security to the workers.

It is implemented only in 15 out of 34 states, including union territories.

It is not applicable to all category of employees, and it depends on the wages earned and the designation of the employee.

The implementation of this Act depends on the total number of employees since its applicability differs based on the state-specific rules.