All you need to know about Labour Welfare Fund

Labour Welfare Fund

Labour welfare can be seen as any assistance in terms of money or kind for the working class. These facilities help the labourers in improving their working conditions, assisting their social security, and raising their standard of living. The Labour Welfare Fund Act encapsulates a variety of services, benefits and other facilities which an employer offers to the employee. These facilities are offered in the form of contributions from the employer and the employee.

Applicability of Labour Welfare Fund Act (State-Wise):

The Government of India launched the Labour Welfare Act to implement some social security for workers. The Labour Welfare Act is currently active in only 15 States and 1 Union Territory, in the country.

Labour Welfare Fund

Labour Welfare Fund

1. Andhra Pradesh

ActAndhra Pradesh Labour Welfare Fund Act, 1987
RuleThe Andhra Pradesh Labour Welfare Fund Rules, 1988
ApplicabilityAny Employer/Establishment employing one or more employees/persons
FrequencyYearly
FormFORM F.xlsx
Websitehttp://labour.ap.gov.in/ELabour/Views/RecentAmendementNewActs.aspx

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date ForSubmission
All employees except those employed mainly in a managerial capacity or who are employed as an apprentice or on a part-time basis30.0070.00100.0031st December31st January

2. Chandigarh

ActThe Punjab Labour Welfare Fund Act,1965
RuleThe Punjab Labour Welfare Fund Rules,1966
ApplicabilityAny Employer/Establishment employing one or more employees/persons
FrequencyMonthly
Form
Websitehttp://chandigarh.gov.in/dept_labour.htm

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
Employees drawing salaries upto Rupees Fifteen Thousand per month5.0020.0025.00Last Day Of the Month15th October15th April

3. Chhattisgarh

ActThe Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982
RuleThe Chhattisgarh Pradesh Shram Kalyan Nidhi Rules, 1984
ApplicabilityAny Employer/Establishment employing one or more employees/persons
FrequencyHalf Yearly
FormFORM A.docx Chhattisgarh-shram-kalyan-nidhi-adhiniyam-applicability.pdf
Websitehttp://cglabour.nic.in/ShramKalyanMandal/abhidayrashi.aspx

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in a managerial or administrative capacity or employed in a supervisory capacity drawing wages exceeding ten thousand per month15.0045.0060.0030th June15th July
All employees except those working in a managerial or administrative capacity or employed in a supervisory capacity drawing wages exceeding ten thousand per month15.0045.0060.0031st December15th January

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4. Delhi

ActThe Bombay Labour Welfare Fund Act, 1953
RuleThe Delhi Labour Welfare Fund Rules, 1997
ApplicabilityAny Employer/Establishment employing five or more employees/persons
FrequencyHalf Yearly
FormFORM A.docx
Websitehttp://www.delhi.gov.in/wps/wcm/connect/DOIT_Labour/labour/notification/labour+welfare+funds

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Two thousand Five Hundred only per month0.752.253.0030th June15th July
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Two thousand Five Hundred only per month0.752.253.0031st December15th January

5. Goa

ActThe Goa Labour Welfare Fund Act, 1986
RuleGoa Labour Welfare Fund, Rules 1990
ApplicabilityAny Employer/Establishment employing one or more employees/persons
FrequencyAny Employer/Establishment employing one or more employees/persons
FormFORM A.xlsx
Websitehttp://labour.goa.gov.in/index.php/goa-lwb/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in a managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred only per month60.00180.00240.0030th June31st July
All employees except those working in a managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred only per month60.00180.00240.0031st December31st January

6. Gujarat

ActThe Gujarat Labour Welfare Fund Act, 1953
RuleThe Labour Welfare Fund (Gujarat) Rules, 1962
ApplicabilityAny Employer/Establishment employing ten or more employees/persons
FrequencyHalf Yearly
FormFORM A-1.docx
Websitehttps://glwb.gujarat.gov.in/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate O fDeductionLast Date for submission
All employees except those working in a managerial or supervisory capacity and drawing wages exceeding rupees three thousand and five hundred per month6.0012.0018.0030th June15th July
All employees except those working in a managerial or supervisory capacity and drawing wages exceeding rupees three thousand and five hundred per month6.0012.0018.0031st December15th January

7. Haryana

ActThe Punjab Labour Welfare Fund Act,1965
RuleThe Punjab Labour Welfare Fund Rules,1966
ApplicabilityAny Employer/Establishment employing ten or more employees/persons
FrequencyMonthly
Form
Websitehttps://hrylabour.gov.in/content/cms/MTU

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees employed, directly by or through any agency (including a contractor) with or without the knowledge of the principal employer, for remuneration in any factory or establishment to do any work connected with its affairs. Each employee shall contribute to the Fund every month an amount equal to zero point two percent of his salary or wages or any remuneration subject to a limit of rupees twenty-five and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee25.0050.0075.00Every Month (Also being accepted QuarterlyHalf YearlyYearly in some instances)Last Day Of The Month (Also being accepted QuarterlyHalf YearlyYearly in some instances)

8. Karnataka

ActThe Karnataka Labour Welfare Fund Act, 1965
RuleThe Karnataka Labour Welfare Fund Rules, 1968
ApplicabilityAny Employer/Establishment employing fifty or more employees/persons
FrequencyYearly
FormFORM D.docx
Websitehttp://labour.kar.nic.in/labour/klwboard.htm

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees who are employed for wages to do any work skilled or unskilled, manual or clerical, in an establishment20.0040.0060.0031st December15th January

9. Kerala

ActThe Kerala Shops And Commercial Establishments Workers Welfare Fund Act,2006
RuleThe Kerala Shops And Commercial Establishments Workers Welfare Fund Scheme, 2007
ApplicabilityAny Employer/Establishment employing one or more employees/persons
FrequencyMonthly
FormFORM 6.docx Form – 5.xlsx
Websitehttp://peedika.kerala.gov.in/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees under the purview of the Kerala Shops and Commercial Establishments Act, 196050.0050.00100.00Monthly5th Of Every Month

10. Madhya Pradesh

ActThe Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
RuleThe Madhya Pradesh Shram Kalyan Nidhi Rules, 1984
ApplicabilityThe Madhya Pradesh Shram Kalyan Nidhi Rules, 1984
FrequencyHalf Yearly
FormFORM A.docx madhya-pradesh-shram-kalyan-nidhi-adhiniyam-applicability.pdf
Websitehttp://shramsewa.mp.gov.in/labourwelfareboard/en-us/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date ForSubmission
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Ten Thousand only per month10.0030.0040.0030th June15th July
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Ten Thousand only per month10.0030.0040.0031st December15th January

11. Maharashtra

ActThe Maharashtra Labour Welfare Fund Act, 1953
RuleThe Maharashtra Labour Welfare Fund Rules, 1953
ApplicabilityAny Employer/Establishment employing five or more employees/persons
FrequencyHalf Yearly
FormFORM A-1.xls
Websitehttps://mahakamgar.maharashtra.gov.in/index.htm

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in the managerial or supervisory capacity and drawing wages upto Rupees Three Thousand only per month6.0018.0024.0030th June15th July
All employees except those working in the managerial or supervisory capacity and drawing wages upto Rupees Three Thousand only per month6.0018.0024.0031st December15th January
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Three Thousand only per month12.0036.0048.0030th June15th July
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rupees Three Thousand only per month12.0036.0048.0031st December15th January

12. Odisha

ActThe Odisha Labour Welfare Fund Act, 1996
RuleThe Odisha Labour Welfare Fund Rules, 2015
ApplicabilityAny Employer/Establishment employing twenty or more employees/persons
FrequencyHalf Yearly
FormFORM F.docx
Websitehttp://www.labdirodisha.gov.in/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in the managerial or supervisory capacity and who is employed as an apprentice or on a part-time basis10.0020.0030.0030th June15th July
All employees except those working in the managerial or supervisory capacity and who is employed as an apprentice or on a part-time basis10.0020.0030.0031st December15th January

13. Punjab

ActThe Punjab Labour Welfare Fund Act,1965
RuleThe Punjab Labour Welfare Fund Rules 1966
ApplicabilityAny Employer/Establishment employing twenty or more employees/persons
FrequencyMonthly
Form
Websitehttp://pblabour.gov.in/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
Any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in an establishment5.0020.0025.00Last Day Of the Month15th April15th October

14. Tamil Nadu

ActThe Tamil Nadu Labour Welfare Fund Act, 1972
RuleThe Tamil Nadu Labour Welfare Fund Rules, 1973
ApplicabilityAny Employer/Establishment employing five or more employees/persons
FrequencyYearly
FormFORM A.docx
Websitehttps://www.lwb.tn.gov.in/

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in a managerial or supervisory capacity and drawing wages exceeding rupees Fifteen thousand per month or who are employed as an apprentice or on a part-time basis20.0040.0060.0031st December31st January

15. Telangana

ActTelangana Labour Welfare Fund Act, 1987
RuleTelangana Labour Welfare Fund Rules, 1988
ApplicabilityAny Employer/Establishment employing twenty or more employees/persons
FrequencyYearly
FormFORM F.xlsx
Websitehttps://labour.telangana.gov.in/AboutUs.do

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All Employees except those working in the managerial or supervisory capacity and drawing wages exceeding rupees one thousand six hundred per month2.005.007.0031st December31st January

16. West Bengal

ActThe West Bengal Labour Welfare Fund Act, 1974
RuleThe West Bengal Labour Welfare Fund Rules, 1976
ApplicabilityAny Employer/Establishment employing ten or more employees/persons
FrequencyHalf Yearly
FormFORM D Statement Regarding Contributions.docx
Websitehttp://www.wblwb.org/html/index.php

Labour Welfare Fund Contribution

CategoryEmployee ContributionEmployer ContributionTotal ContributionDate Of DeductionLast Date for submission
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding rupees thousand six hundred per month3.0015.0018.0030th June15th July
All employees except those working in the managerial or supervisory capacity and drawing wages exceeding rupees thousand six hundred per month3.0015.0018.0031st December15th January

Eligible Establishments and Employees

The Labour Welfare Fund Act does not apply to each and every employee working in an establishment. The applicability of the Act depends on the employee’s salary as well as his designation. The employer too needs to pay attention to the number of employees working at his company to avail of the Act. Furthermore, it depends on the State the establishment is in, to check the applicability of the Act depending on the number of employees.

For example, in Maharashtra, the Labour Welfare Act applies to all establishments employing 5 or more employees except supervisors and managers who draw wages above Rs 3000. Whereas in Punjab establishments employing 20 or more workers are covered under the Act and have no restriction on the number of wages or designation of employees.

Period of Remittance

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 Karnataka, Haryana, Tamil Nadu, Andhra Pradesh, have an annual contribution. While some states such as Maharashtra, Gujarat, Madhya Pradesh have contributions during June and December months.

Calculate Labour Welfare Fund for Different States and See Employer’s and Employee’s Contribution

Labour Welfare Fund Benefits for Employees

In general, the money in the Labour Welfare Fund may be utilized by the Board to defray expenditures on the following:

  1. For the education of the children of the workers.
  2. Provide medical facilities for employers in the public and private sectors. so that they, in turn, can contribute those facilities to their employees and families.
  3. Transportation facilities for the workers for commuting to work.
  4. Entertainment and recreational activities like sports, music, etc. for the employees to create a healthy work environment, which also includes travel stipends for participating in sports competitions.
  5. Under the housing amenities, loans are offered to industrial workers for the construction of houses at discounted rates.
  6. Provision for excursions, tours and holiday homes.
  7. Subsidiary occupations and home industries for women and unemployed persons.
  8. Reading rooms and libraries.
  9. Vocational training.
  10. Nutritious food to the children of employees.
  11. Scholarship for children of workers.

Please don’t forget to check out our in-depth video on this topic below:

If you found this blog useful, you can also see our courses on Labour Welfare Fund and Professional Tax. Speaking of Labour Welfare, another interesting topic to check out is the ESI Act.

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