Understanding Welfare Fund Deductions: Is There a Salary Threshold We Should Know About?

Dear Seniors,

I have a doubt about the welfare fund. To whom do we have to deduct the welfare fund? Is there any limit, I mean a threshold salary limit for the deduction of the welfare fund from the employees?

Please find the attachment regarding welfare deductions in all states. Please note the correction of the amount to Rs. 10,000/- in Madhya Pradesh instead of Rs. 1600/-. Kindly verify the deductions for other states under your purview as well.

Dear Anamika,

The Welfare Fund is governed by State Legislation. You must review the relevant State Act and Rules to determine the applicability of the act to your establishment. Furthermore, it is crucial to take note of the "Definition of Employee" as outlined in the Act. All individuals falling under the definition of "Employee" are responsible for the payment of Welfare Contributions.