Labour Welfare Fund Benefits! What is it?
Employers, trade unions, governmental and non-governmental institutions, and agencies are all responsible for the well-being of their employees. Anything done for the comfort and improvement of employees that is supplied in addition to their salaries is referred to as welfare.
Employee welfare helps to keep morale and motivation strong, allowing employees to stay with the company for a longer period of time. Employee welfare include the monitoring of working conditions, the establishment of industrial harmony through infrastructure for health, industrial relations, and insurance for workers and their families against disease, accident, and unemployment
All of the services available to workers to improve their working circumstances, offer social security, and boost their standard of living are referred to as labour welfare. Several state legislatures have passed the labour Wellbeing Fund Act, which is solely focused on the welfare of workers. We’ll tell you everything about it here!
What is the labour Welfare Fund?
Labour Welfare Fund is a fund that is contributed to by employers, employees, as well as by the government in some states. Among the benefits provided by the welfare funds are housing, medical treatment, educational programs, and recreational facilities.
Each state and Union Territory has its own labour Welfare Fund Act and labour Welfare Fund Rule.
How Does labour Welfare Fund Benefits Workers?
The labour Welfare Fund (LWF) is administered by the labour Board and provides a variety of worker welfare programmes. The schemes provide assistance in the following three categories.
Raising the Living Standard
Providing nutritious food, educational opportunities, and scholarships to employees’ children; providing medical services to private and public sector workers and their families; and providing housing at reduced prices.
Offering Better Work Conditions
Commuting to work (transport), reading rooms, libraries, vocational training programmes, excursions and tours, recreational facilities at the workplace, and so on are all examples of furnishing facilities for workers and employees.
Providing Social Security
Organizing medical treatment, industry-specific plans, and ancillary occupations for women, unemployed people, and so on.
The State Labour Welfare Board determines the amount of the fund, the rate of contribution, and the frequency of contributions. The contribution may be made once a month, once every six months (half-yearly), or once a year (annually) in the authorized amount and submitted to the appropriate Labour Welfare Fund Board in prescribed Form before the Act’s due date.
Currently, the states of Andhra Pradesh, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, and West Bengal have adopted and implemented this Act.
Labour Welfare Fund Benefits For Employers
Refined Industrial Relations
Improvement in work efficiency
Improved Mental and Moral Health
Better Outlook of Employers
The Scope of Labour Welfare Fund
This Act’s scope is expanded to include housing, family care, and worker’s health services, such as medical examinations, general treatment clinics, newborn welfare, women’s general education, workers’ activity facilities, marriage, education, and funerals, among other things. Employer, employee, and, in a few jurisdictions, government payments are used to support state-specific labour Welfare Funds.
How Does The Process Work?
The donation to the Labour Welfare Fund can be made once a year, twice a year, or once a month. Depending on the state’s unique Act, the frequency may vary. Furthermore, if the frequency is half-yearly, the deduction period is divided into two periods based on the date specified in the state-specific Act. The employer must deduct the amount from the employee’s wage and submit it to the Labour Welfare Fund board in the prescribed form by the due date.
Labour Welfare Fund Expenditure
In general the money in the Fund may be utilized by the Board to defray expenditure on the following:
- Educational facilities for the children of the workers.
- Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families.
- Transport facilities to the workers for commuting to work.
- Recreational facilities in the form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment.
- Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
- Excursions, tours and holiday homes.
- Home industries and subsidiary occupations for women and unemployed persons.
- Reading rooms and libraries.
- Vocational training.
- Nutritious food to children of employees.
Labour Welfare Fund Deduction In Salary
An employee’s contribution rate is 0.2 percent of his or her pay or other remuneration, up to a maximum of Rs. 25/-. Employer contributions are equal to twice the amount given by the employee.
How To Calculate labour Welfare Fund In Salary
According to the government, if the gross income is higher than Rs 3000, the employee would receive Rs 2 from the labour Welfare Fund; otherwise, the employee will receive Rs 1.
If the employee’s gross income is higher than Rs 3000, the formula is If (Gross salary>3000,2, 1) i.e. If the employee’s gross salary is more than Rs 3000, the formula is If (Gross salary>3000,2, 1), i.e. If the employee’s gross salary is more than Rs 3000, the formula is If (Gross salary>3 (in Maharashtra)
How Can Workex Help?
Keeping up with compliance and Labour Welfare Fund is not an easy task.
So, how to handle it? That’s when payroll software comes in handy and with Workex, you get all the essential features of payroll software along with some additional perks.
Workex is a cloud-based payroll software where you get 100% accurate salary calculation and processing along with taking care of paid leaves, tax deductions, bonuses, and other payroll inputs. Your staff will receive correct payment on time, following which they can also easily download salary slips on our app for their records.
You can add your staff on our app in a matter of minutes using only your smartphone. Once you are done adding their stipend and bonuses, Workex will automatically track their attendance, leaves, shift timings, overtime and process their payroll. Your employees’ lives will also become easier as they will be able to mark their attendance on the Workex app with just a single tap on their smartphone.
We also assist with the compliance of Labour welfare funds in payroll computation according to state legislation, so you may avoid compliance issues and pay your employees accurately.
We also provide performance reports for all of your employees based on their punctuality and attendance, allowing you to track the productivity of your team using our app. We also ensure that all of your legal and statutory obligations are met in a timely manner so that you do not incur any penalties or fines.