Labour Welfare Fund

The Labour Welfare Fund (LWF) is a statutory fund established by state governments in India with the objective of promoting the welfare of workers. The fund is created by collecting contributions from employers and employees, and the funds are utilized for the welfare and benefit of workers and
their families. Here are some key points about the Labour Welfare Fund:

  • Applicability: The LWF is applicable to establishments or factories as specified by the respective state government. The applicability criteria may vary from state to state, and generally, establishments employing a minimum number of employees are covered under the fund.
  • Contributions: Both the employer and the employee are required to make contributions to the Labour Welfare Fund. The contribution amounts are usually a fixed percentage of the employee’s wages and are subject to a maximum limit set by the state government. The contributions are typically deducted from the employee’s wages and remitted to the fund by the employer.
  • Welfare Activities: The funds collected through LWF are utilized for various welfare activities and benefits for workers and their families. The specific welfare activities can vary from state to state but typically include provisions such as housing assistance, education and scholarship programs, medical facilities, skill development and vocational training, maternity benefits, and assistance during emergencies or natural disasters.
  • Administration: The administration and management of the Labour Welfare Fund are usually entrusted to a separate board or authority established by the state government. This board is responsible for collecting contributions, maintaining records, and implementing welfare schemes and activities.
  • Benefits to Workers: Workers who contribute to the Labour Welfare Fund and their eligible family members can avail of the welfare benefits provided by the fund. The nature and extent of the benefits can vary depending on the state government’s policies and schemes.
  • Registration and Compliance: Employers covered under the LWF are required to register with the respective state’s Labour Welfare Board or Authority. They need to maintain records related to contributions and provide necessary information as prescribed. Non-compliance with the LWF provisions may result in penalties or legal consequences.

It is important to note that the specific provisions, rates of contribution, and welfare activities under the Labour Welfare Fund can differ from state to state in India. Employers and employees should refer to the applicable state’s rules and regulations to understand the exact requirements and benefits related to the Labour Welfare Fund.