Labour Welfare Fund Act

Labour Welfare Fund (LWF) is a contribution which is managed by state authorities. It is support extended in the form of money for those who need it. It gives facilities to the labors to improve the working conditions, gives them social security, and raises their living standard. Various state legislatures have reinforced an act that focuses on the worker’s welfare and is known as the Labour Welfare Fund Act. Various services, facilities and benefits are offered to the employee from the employer’s side.

The rate of contribution may vary but all these facilities are offered to employees by the employer as a means of contribution. For more detailed information, you should check labour welfare fund rates, scope, fund expenditure and applicability.

Scope of Labour Welfare Fund Act

The scope of Labour Welfare Fund Act is extended 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.

Applicability of the LWF Act

The Act is applicable to all the companies that have 5 or more persons employed. In order to provide the social security to their workers, the government has been introduced the Labour Welfare Fund Act. This act has been implemented only in 15 states out of 34 states including union territories of India.

Applicable States

Madhya Pradesh Maharashtra Kerala Odisha
Tamil Nadu Telangana Punjab West Bengal
Gujarat Haryana Goa Karnataka
Chandigarh Chhattisgarh Andhra Pradesh Delhi


Not Applicable States

Andaman and Nicobar Islands Central Arunachal Pradesh Assam
Dadra and Nagar Haveli Bihar Daman and Diu Himachal Pradesh
Jharkhand Jammu and Kashmir Lakshadweep Manipur
Mizoram Meghalaya Nagaland Pondicherry
Sikkim Rajasthan Tripura Uttar Pradesh
Uttarakhand

 

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