Understanding the Labour Welfare Fund: Is It Necessary and What Are the Benefits?

I would like to know the benefits of the Labour Welfare Fund. Please share it. Is it necessary to pay?

Dear Member,

If the State Labour Welfare Fund has provisions for the deduction of labour welfare contributions from employees, then it is compulsory to pay into the Fund. Various labour welfare schemes are being implemented by the State Labour Welfare Board using this fund for the benefit of workers and employees.

R.N.Khola

Dear Mr. Khola,

Greetings.

I have a few queries regarding the Delhi Welfare Fund. We are a company registered in Mumbai and have a branch in Delhi comprising 15 employees, of which 2 are at the managerial level and the rest are at the executive level.

My questions are:
a) What is the criteria for payment for employees? Do we need to pay for all employees, including managers and executives?
b) If yes, what is the amount per employee? It is a bit confusing as there are two amounts mentioned - 2.25 and 1.50 per employee.

I would highly appreciate your response on this matter.

Regards,
Prerana Gurao

Dear Prerana,

According to the material available to me, I would like to address this query as follows:

All employees, except those working in managerial or supervisory roles and drawing wages exceeding Rs. 2500/- per month, are to be considered for the deduction of LWF contributions.

As per Section 6BB of the Act, the components of the Labour Welfare Fund consist of the following contributions:

(a) Rs. 0.75 every six months per employee listed on the establishment register as of June 30th and December 31st each year, as the employee's share;
(b) Rs. 2.25 every six months per employee, as the employer's share, due before the 15th day of July and the 15th day of January each year; and
(c) Rs. 1.50 every six months per employee, as the Government of Delhi's matching contribution, an amount equal to twice the employee's contribution. This will only be paid upon receipt of the statement in the prescribed format from the Welfare Commissioner of the Delhi Labour Welfare Board, showing the total amount of employee and employer contributions for each establishment.

Submitted as requested.

With Regards,
R.N.KHOLA

What is the compensation the state government pays to the legal heir of a deceased individual in the case of death on duty who was covered under LWF, for example, in Haryana State?

Regards,
Pon

Dear Pon,

Information available with me may be read as under:

Ex-gratia to the widows/dependents of industrial workers

Haryana Labour Welfare Board is running this scheme for the workers working in the establishments of Haryana State up to Supervisor category & who are covered under the definition of Section 2(s) of the Industrial Disputes Act, 1947, and who have paid the full due amount of contribution under Section 9A of the Punjab Labour Welfare Fund Act, 1965, and are drawing monthly wages up to Rs. 15,000 per month:

This scheme was introduced in the year 1976. The main aim of the scheme is to give financial help to the widows/dependents of deceased workers. A lump sum amount of Rs. 50,000 (Rs. Fifty thousand only) is given to each widow/dependent of a deceased worker.

Eligibility criteria:
1. The application is to be submitted within two years from the date of death of the worker in field offices or the Head Office.
2. Service of the worker should be at least six months at the time of death.
3. If the application is submitted by other than the widow of the deceased worker, then an affidavit to the effect that he/she is wholly dependent upon the deceased will have to be furnished along with the application.
4. An attested advance receipt of the widow of the deceased worker/dependent of Rs. 50,000 should also be annexed with the application.
5. The management will also furnish a certificate towards the death of the worker.
6. The applicant will submit an affidavit to the effect that he/she is fully dependent upon the deceased worker and he/she has not earlier availed the benefit of the said scheme.

R.N.KHOLA (M) 09810405361

Hello All,

I have a query regarding the Welfare Fund:

1. How will the employees benefit when they are not even aware of it in most cases?
2. Is there any law stating that the employer should make the employees aware of such benefits?

Kindly provide insight.

Dear Member,

Please utilize the Haryana Labour Department website to gain knowledge about the various welfare facilities extended by the Haryana Labour Welfare Board. The website link is as follows: www.hrylabour.gov.in.

Regards,
R N KHOLA