Labour Welfare Fund Act

Labour Welfare Fund focuses on the welfare of the workers and provides services and facilities to the labourers by the employer to improve their standard of living, working conditions and give social security.

These facilities are offered by the contribution from the employers and the employee. The contribution rate differs from state to state.

The Labour Welfare Fund Act extends to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral. etc. State-specific Labour Welfare Funds are funded by contributions from the employer, employee and in few states, the government also.

This act has been implemented in only 15 states. The act is applicable only to a selected category of employees, and it depends on the wages earned and the employee designation. And this also depends on each state.

This Welfare Fund contribution can be made monthly, half-yearly or annually. The frequency depends upon each State. The employer needs to make the deduction from the salary of the employee and submit the same to the Labour Welfare Fund board before the due dates.