The Labour Welfare Schemes are established with the funds contributed
by the Workers, Employer and State Governments and unpaid wage of the
workers to render services, benefits and facilities to the workers by
the employers focusing solely on the benefit of the workers. The fund
utilized as an aid to improve working conditions of the workers,
provide social security and uplifting standard of living. Such rates
of contributions differ from state to state and extend to benefiting
for housing, health care, education, family planning/ welfare, medical
facilities, funeral, skill development, matrimonial facilities,
community activities, skill development, training etc. Though this fund
is for the workers, but same was not implemented in all the states in
India and only applicable to certain categories of workers/employees
depending on the wages earned and designation of the employees.
And the contribution made by both employer and employee may be made
annually, half yearly or monthly as per the state's regulation.
This Labour Welfare Fund in India at present is functional in 16
states and under various state legislations focusing mainly on the
welfare of the workers. These states have Labour Welfare Fund under
the Act and Schemes that direct its applicability. Moreover, the
contributions under each Labour Welfare Fund differ from state to
state as the state Government manages them. And the frequency,
contribution date and contribution amount of the Labour Welfare Fund
differ as well. Following are the states operates with Labour Welfare
Fund- Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Daman and
Diu, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Odisha,
Punjab, Tamil Nadu, Telangana and West Bengal.
With digitalization of Government portals, employers today can enable
various services under the Fund through online mode for submitting
contributions and accessing other information without hassle. These
Portals provide registration and renewal services, online submission
of returns, payment tracking and digital receipts. But in order to
access these services the employer has to register with the concerned State
Labour Board, deduct correct amounts of contribution from employees as per
the mandate, timely deposit them along with employer contribution and maintain
accurate records and returns for transparency. If the employer fails to do so,
they will be liable for penalties, disqualifications and legal actions and will
be barred from government subsidies. There are common legal actions against
companies who fail to comply with the Board mandates like fines, legal
proceedings, interest in unpaid amounts and necessary actions in extreme cases
