Confused About Labour Welfare Fund Deductions for Employees Earning Over Rs. 3,500?

Query on Maharashtra Labour Welfare Fund Act

I have a small query on the Maharashtra Labour Welfare Fund Act. The Maharashtra Labour Welfare Fund Act states that managers, supervisors, and employees drawing wages of more than Rs. 3,500 per month are not included in this act. On the other side, the Maharashtra Minimum Wages Act states that monthly wages for unskilled employees (under the Shops and Establishment Act) should not be less than Rs. 5,000.

Does this mean that it is not required to deduct labour welfare fund contributions from an employee if they are drawing wages exceeding Rs. 3,500, irrespective of category? I am working for a commercial establishment where all the employees, including office boys, are drawing wages more than Rs. 3,500. I am confused about deducting the employee's contribution towards the labour welfare fund.

Please clarify.

With Regards,
Priya

Understanding Labor-Related Terms and Their Implications

In the various labor-related laws, you will find terms such as worker, workman, and employee. Moreover, certain designations performing Administrative, Managerial, Supervisory, Technical, and Operative functions are also included in the definitions.

The law attempts to distinguish between the working class and managerial staff, not based on salary or wages, but on the functions and duties performed. Therefore, merely understanding the law is not enough to determine if someone falls into a managerial category; one must also have factual information about the powers and functions associated with a position. Designations are not crucial; rather, the powers held and functions performed reveal the true nature of a position.

A workman remains a workman regardless of their wages. A manager also remains a manager regardless of salary due to their exercise of managerial and administrative functions. However, a supervisor is classified as a worker if they earn a salary below the limit (currently Rs. 6,500 per month); otherwise, they are considered part of the managerial category.

Under the Maharashtra Welfare Funds Act, individuals serving as managers and supervisors earning Rs. 3,500 per month are not covered. This means that a manager earning less than Rs. 1,000 per month would be included. The limit of Rs. 3,500 was established a long time ago, causing some confusion when compared to the current minimum wage rates.