Labour Welfare Fund (LWF) Guide & Applicability
What is the Background of Labour Welfare Fund?
Due to rapid industrialization in every state, it has been felt that labour welfare measures can be best administered by constituting statutory welfare boards in every state and entrusting them with the duty of looking after the welfare of the labour. It was agreed in the Labour Ministers Conference held at Bangalore in October 1961 that all States should enact a law for the constitution of a statutory Labour Welfare Fund for the welfare of labour.
What is the Applicability of the Labour Welfare Fund Act?
Presently, 16 state governments out of 37 states, including union territories, have enforced the Labour Welfare Fund Act. The Act applies to all establishments except establishments exempted under the act or by notification. While applying this act, one should check the number of employees and wages earned because these vary from state to state.
What is the Labour Welfare Fund?
The Labour Welfare Fund is established by the State Government under the State Labour Welfare Fund Act. It is administered by the State Labour Welfare Board to provide financial aid, welfare facilities, and improved working conditions for labour. The main source of the fund comes from employee and employer contributions and, in some states, state government contributions. The Labour Welfare Fund is also popularly known as LWF.
Who is liable to contribute, deduct and deposit LWF?
The employer is liable to deduct an employee's contribution from the employee's salary and contribute to the Labour Welfare Fund as an employer. The employer is liable to deposit employee and employer contributions at such rate and at intervals as prescribed under the Act.
What are the Benefits of Labour Welfare Fund Deduction?
- Opening of Labour Welfare Centre
- Educational facilities for workers' children
- Reading rooms and libraries
- Entertainment and other forms of recreation
- Corporate activities of social nature
- Vocational training
- Nutritious food to children of employees
- Games and sports
How do Registration & Returns work for LWF?
LWF registration is not mandatory in all the states. However, some states have recently introduced online registration. The frequency of filing returns and deposits of LWF differs from state to state. Most of the states follow the annual filing of returns. For more details, please click on the applicable state.