Navigating Labor Welfare Contributions: Do We Need to Pay Both Maharashtra and Gujarat Funds?

Labor Welfare Fund Contributions: Maharashtra vs. Gujarat

Our company has its head office in Mumbai, and we have centralized payroll. We contribute to the Maharashtra Labor Welfare Fund every month for all our employees across different locations. Currently, some of our site employees work in the Gujarat region for other companies. These skilled laborers work from project to project as per our requirements. The companies they work for are insisting that we make contributions to the Gujarat Labor Fund as well. The question is, do we need to make these contributions to the Gujarat Labor Welfare Fund when we are already paying into the Maharashtra Labor Fund?

Regards,
raga

Dear Mr. Raga,

If you are already complying with the Maharashtra Labour Welfare Fund Act, which covers the branches and departments of the establishments, there is no necessity to pay the Labour Welfare Fund again. Please provide them with the details in writing and ask for justification for paying the same again in Gujarat if you are already following the Act in Maharashtra.