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Labour Welfare Fund Act in India | Labour Welfare Fund Benefits | LWF Contribution - Pionhr

Labour Welfare Fund

Introduction

The Labour Welfare Fund is a provision of the government to ensure some basic and necessary services, amenities and facilities to the workers. This Act is to ensure the better life and standard of living of the employees. There are separate (State) Labour Welfare Fund Act and (State) Labour Welfare Fund Rule for different states & Union Territories. Accordingly, separate Labour Welfare Board is created for each different States and UTs and different rate of Contribution for Employer and Employee. The Labour Welfare Fund is created to ensure the extended support for the social assistance for workers in the certain sectors.

Applicability

The LWF is applicable in 16 states of India. Please find the details below:

State

Employee Contribution

Employer Contribution

Total Contribution

Frequency of Contribution

Andhra Pradesh

30

70

100

Annual

Chandigarh (Union Territory)

5

20

25

Monthly

Chhattisgarh

15

45

60

Half Yearly

Delhi

0.75

2.25

3

Half Yearly

Goa

120

360

480

Annual

Gujarat

6

12

18

Half Yearly

Haryana

0.2% of salary of employee or wages or any remuneration subject to a limit of Rs. 25/-

Twice the amount contributed by such employee

-

Monthly

Karnataka

20

40

60

Annual

Kerala

20

20

40

Monthly

Kerala

4

8

12

Half Yearly

Madhya Pradesh

10

30

40

Half Yearly

Maharashtra

6/12

18/36

24/48

Half Yearly

Odisha

20

40

60

Not Applicable

Punjab

5

20

25

Monthly

Tamil Nadu

10

20

30

Annual

Telangana

2

5

7

Not Applicable

West Bengal

3

6

9

Half Yearly

 

Expenditure


The Fund deposit may be spent on the following:
 
  •  Educational facilities for the children of the workers.
  • Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families.
  • Transport facilities to the workers for commuting to work.
  • Recreational facilities in form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment.
  • Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
  • Excursions, tours and holiday homes.
  • Home industries and subsidiary occupations for women and unemployed persons.
  • Reading rooms and libraries.
  • Vocational training.
  • Nutritious food to children of employees.