Understanding the Increased Labour Welfare Fund Contributions in Tamil Nadu: What Employers and Employees Need to Know

Dear Friends,

The contribution of the employee and employer to the Labour Welfare Fund has been increased with effect from 2009 - from Rs. 5 to Rs. 7 for employees and from Rs. 10 to Rs. 14 for employers.

The deduction is to be made in the December payslip, and contributions from both the employer and employee must be paid to the TN Labour Welfare Board on or before the 31st of January 2010.

A copy of the Government Order (GO) is attached.

May I know who is eligible for this Labour Welfare Fund? Is there any slab rate for those who are covered under ESI?

There is no slab rate. All the employees who have worked more than 30 days in a year are eligible to contribute their share.