Labour Welfare Fund (LWF) Act

Labour welfare refers to all the facilities for labourers to improve their working conditions, provide social security, and raise their standard of living. Several state legislatures have enacted an Act exclusively focusing on the welfare of the workers, known as the Labour Welfare Fund Act. We tell you all about it here!

Labour Welfare Fund Ready Reckoner

Select a state from the list below to see information for that state.

What is Labour Welfare Fund?

Labour Welfare Fund is a fund contributed by Employer, Employee and in some states by the Government as well. The purpose of these welfare funds is to provide housing, medical care, educational, and recreational facilities to the workers and their dependents.

Distinct Labour Welfare Fund Act and Labour Welfare Fund Rule are framed for different states & Union Territories. Click on a state below for more details.

How Does Labour Welfare Fund Help Workers?

The Labour Welfare Fund (LWF) is managed by the Labour Board which provides a number of welfare schemes for workers. The schemes provide support in three broad areas as follows.

Improving Standard of Living

• Providing nutritious food, educational facilities, and scholarships to the children of employees
• medical facilities to the private and public sector workers and their families
• housing facilities at concessional schemes and rates

Offering Better Work Conditions

Furnishing facilities for workers and employees such as commuting to work (transport), reading rooms, libraries, vocational training programs, excursions and tours, recreational facilities at the workplace, etc.

Providing Social Security

Arranging medical treatments, schemes for certain industries and subsidiary occupations for women, unemployed persons, etc.

The amount of fund, rate, and periodicity of contribution is decided by the respective State Labour Welfare Board. The contribution may be made every month or once in six months (half-yearly) or once in a year (annually) as per the prescribed quantum and remitted to appropriate Labor Welfare Fund Board in prescribed Form before the due date specified under the Act.

Currently, this Act is enacted and applicable in the States of Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana & West Bengal.

Labour Welfare Fund Benefits For Employers

• Refined Industrial Relations
• Improvement in work efficiency
• Elevated Morale
• Improved Mental and Moral Health
• Better Outlook of Employers
• Social Benefits