Is it advisable to form staff welfare fund at organisational level?

Is it advisable to form staff welfare fund at organisational level, by deducting a minimal amount like Rs.10 monthly from employee's salary? Is it permissible under law? If yes what is the procedure? (HR department point of view).
Purpose is for giving immediate support to staff/family members during situations like critical illness/death of a staff

You can have an 'Employee Relief Scheme' which is purely voluntary and could be administered by the company. I have the experience of managing 'Death Relief Scheme' where on the reported death of an employee the management used to release an amount equal to the net contribution of members of the scheme immediately on receipt of information of death of the employee to be followed by recovery of the contribution from the next salary of all member employees. We used to make payment of nearly Rs. 50,000/- to the family. Normally, it takes some time for the payment of terminal benefits and there will be immediate cash crisis for the bereaved family to tide over the day to day expenses and the timely payment (in 2-3 days) would be a big help. You can devise a suitable scheme looking to the requirements.