Labour Welfare Fund (LWF) – Various Indian States

Labour Welfare Funds are set up under the Labour Welfare Act to provide benefits and assistance to workers and labourers. These facilities help improve workers' working conditions, assisting in their upliftment and raising their standard of living.

The Board (LWF) may utilize the funds for:

· Providing transportation facilities to workers for commuting to work

· Education of the children of the workers

· Nutritious food for their children

· Subsidiary occupations for women and unemployed persons

· Vocational training

· Encouraging and assistance for participation in sporting events and competitions

· Offering loans to industrial workers for the construction of houses at discounted rates

· Scholarship for children of workers

· Setting up reading rooms and libraries

· Medical facilities to employers in public and private sectors with a motive to encourage them to extend the same to their respective employees and families

· Encourage entertainment and recreational activities like sports, music, etc. to create a healthy work environment among the employees

· Provision for excursions, tours and holiday homes

Do all employers and employees (workers) come under the purview of the Act?

The applicability differs based on state-specific rules. Respective State Legislations prescribe these parameters.

The implementation of this Act to establishments depends on:

· total number of employees

· the wages earned and

· the designation of the employee

The Labour Welfare Act is currently active in 16 States (including Union Territories) in India.

Contribution

The employer and employee make contributions to the fund. In some states, the Government contributes as well. Separate (State) Labour Welfare Fund Act and (State) Labour Welfare Fund Rules are framed for different States & Union Territories. Thereby, the rate of contributions differ.

Remittance of Contributions

The State Labour Welfare Board decides the amount of contribution and the frequency of the contribution. The contribution to the Labour Welfare Fund may occur annually, half-yearly or monthly. Some states such as Andhra Pradesh, Goa, Karnataka and Tamil Nadu have an annual contribution. In contrast, some states such as Madhya Pradesh, Maharashtra and Gujarat have contributions during June and December. Establishments in Kerala have to follow monthly or half-yearly contributions depending on the Act applicable to them.

Below is a summary showing the States and Union Territories that have adopted the law, the periodicity of contribution, and the dates on which contributions must be deducted and remitted.

State / Union Territory (UT)

Frequency of Contribution

Due Date

Andhra Pradesh

Annual

31 Jan

Chandigarh (UT)

Monthly

15 Oct,15 Apr

Chhattisgarh

Half Yearly

31 Jul,31 Jan

Delhi

Half Yearly

15 Jul,15 Jan

Gujarat

Half Yearly

31 Jul,31 Jan

Goa

Annual

31 Jan

Haryana

Monthly

31 Dec

Karnataka

Annual

15 Jan

Kerala (For firms under Factories Act)

Half Yearly

20th

Kerala (For firms under Shops and Establishment Act)

Monthly

20th

Maharashtra

Half Yearly

15 Jul,15 Jan

Madhya Pradesh

Half Yearly

15 Jul,15 Jan

Odisha

-

30 June and 31 Dec being Date of deduction,

15 July and 15 Jan being Last date for submission

Punjab

Monthly

15 Oct,15 Apr

Tamil Nadu

Annual

31 Jan

Telangana

-

31 Dec- Date of deduction,

31 Jan- Last date for submission

West Bengal

Half Yearly

15 Jul,15 Jan