Labour welfare fund is a statutory contribution managed by individual state
authorities. The state labour welfare board determines the amount and frequency of the contribution.
The contribution and periodicity of remittance differs with every state. In some states the
periodicity is annual (Andhra Pradesh, Haryana, Karnataka, Tamil Nadu etc) and in some states it is
to be contributed during the month of June & December (Gujarat, Madhya Pradesh, Maharashtra
etc).
What is Labour Welfare Fund?
Labour welfare is an aid in the form of money or necessities for those in need. It
provides facilities to labourers in order to improve their working conditions, provide social
security, and raise their standard of living.
To justify the above statement, various state legislatures have enacted an Act
exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour
Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by
the employer. Such facilities are offered by the means of contribution from the employer and the
employee. However, the rate of contribution may differ from one state to another.