Labour Welfare Fund (LWF)

The Labour Welfare Fund (LWF) is a statutory initiative managed by state authorities in India, designed to enhance the working conditions and overall well-being of labourers. Its primary objective is to provide social and financial security to workers, thereby improving their quality of life.

Key Features:

• State-Specific Acts: The LWF is regulated by different states, with each state having its own Labour Welfare Fund Act. These acts focus on the welfare and development of labourers by providing various benefits.
• Contribution by Employer and Employee: Contributions to the LWF come from both employers and employees:
  • Employer's contribution: INR 12 for employees earning more than INR 3,000 per month.
  • Employee's contribution: INR 6 for employees earning up to INR 3,000 per month.
• Exemptions: Employees in managerial or supervisory roles, earning more than INR 3,500 per month, are exempt from contributing to the LWF.
• Deposit Cycle: Contributions are typically deposited twice a year, in June and December.

Benefits:

The LWF ensures that labourers have access to improved social services, including healthcare, housing, education, and recreational facilities. By pooling resources, the fund allows states to implement welfare schemes that directly benefit the workforce.

Plum offers group health insurance as part of its benefits platform, aligning with the goal of improving employees' health and well-being.

This concise overview ensures clarity for HR professionals managing LWF contributions and benefits, helping both employees and employers stay compliant with state regulations.

Frequently Asked Questions (FAQ)

Q. How can employees and employers check their LWF contribution status or compliance with the fund?

A. Employers can review their payroll systems or consult their finance departments to ensure LWF compliance. Employees should check payslips or ask their HR departments to verify their contributions.

Q. What are the specific welfare benefits provided through the LWF in different states?

A. The benefits vary by state but often include healthcare, education support, housing, and recreational facilities for labourers. To know the exact benefits, employees or employers should refer to their respective state's Labour Welfare Fund Act.

Q. Are there any penalties for employers or employees who fail to contribute to the LWF on time?

A. Employers face penalties or fines if they fail to contribute on time. Employees may not face direct penalties, but delayed contributions can affect their access to welfare benefits.