Dear Seniors,
If the employee joins on 31st July/December, in that case, the person would get a wage of 250 Rs. per day. As per The Bombay Labour Welfare Fund Act, 1953, there are 2 slabs:
1) Up to 3000 - Employee Contribution: 6 Rs & Employer Contribution: 18 Rs
2) Above 3000 - Employee Contribution: 12 Rs & Employer Contribution: 36 Rs.
In the above case, the monthly wages of the employee would definitely be more than Rs. 3000.00. So, in this scenario, the contribution of an employee is Rs. 6.00 or Rs. 12.00.
My question is, if the casual/contract worker only works for 01 day and his chances of returning back are zero, why should the employer bear an excess of Rs. 18 for all such employees? Because we are not paying workers per month wages but per day wages, so in this case, his wage would be around Rs. 300 including all benefits.
Thanks in advance.
From India, Pune
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470If the employee joins on 31st July/December, in that case, the person would get a wage of 250 Rs. per day. As per The Bombay Labour Welfare Fund Act, 1953, there are 2 slabs:
1) Up to 3000 - Employee Contribution: 6 Rs & Employer Contribution: 18 Rs
2) Above 3000 - Employee Contribution: 12 Rs & Employer Contribution: 36 Rs.
In the above case, the monthly wages of the employee would definitely be more than Rs. 3000.00. So, in this scenario, the contribution of an employee is Rs. 6.00 or Rs. 12.00.
My question is, if the casual/contract worker only works for 01 day and his chances of returning back are zero, why should the employer bear an excess of Rs. 18 for all such employees? Because we are not paying workers per month wages but per day wages, so in this case, his wage would be around Rs. 300 including all benefits.
Thanks in advance.
From India, Pune
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Dear Prashant,
One thing to make clear is that the welfare fund is not based on the earned salary. The slabs are determined by the monthly standard salary. Therefore, you should ensure compliance.
Another point to note is that in the case of contract workers, you are not required to pay the labor welfare fund. However, it is your responsibility as the principal employer to oversee the compliance carried out by the contractor. If the contractor fails to comply, then you must ensure compliance on behalf of the contractor.
Regards,
Sanjay Mulay
From India, Pune
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One thing to make clear is that the welfare fund is not based on the earned salary. The slabs are determined by the monthly standard salary. Therefore, you should ensure compliance.
Another point to note is that in the case of contract workers, you are not required to pay the labor welfare fund. However, it is your responsibility as the principal employer to oversee the compliance carried out by the contractor. If the contractor fails to comply, then you must ensure compliance on behalf of the contractor.
Regards,
Sanjay Mulay
From India, Pune
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Thank you for your response. However, my question is, if the wage for a worker is around 250 Rs. only, then I believe as an employer, I should only pay Rs. 18.00. The labor welfare board is, however, insisting on Rs. 36.00. Could you please clarify my doubt?
From India, Pune
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From India, Pune
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Dear Prashant, Wages for the month goes to 250*30=7500, so it comes into 2nd slab of LWF contribution so you have to pay Rs. 36.00. Regards, Sanjay Mulay
From India, Pune
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From India, Pune
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whether the welfare fund are same for all the states ?who is decide the labour welfare fund amount
From India, Satara
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From India, Satara
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TN Labour Welfare Fund 2018.pdf
Statewise Labour Welfare Fund.xls