HR Terminology
Labour Welfare Fund
Labour Welfare Fund (LWF) is a statutory fund established by various state governments to promote the welfare of labourers and workers. Each state may have its own rules and regulations regarding the implementation and administration of the Labour Welfare Fund.
The primary objective of the Labour Welfare Fund is to provide social security and improve the living and working conditions of workers employed in certain specified industries or sectors.
The Labour Welfare Fund is typically applicable to specified categories of employees and workers in certain industries or establishments. The applicability may vary from state to state.
Contributions to the Labour Welfare Fund are typically made by both employers and employees. The respective state’s rules define the contribution amounts and frequency. Employers are required to maintain records related to the Labour Welfare Fund contributions and furnish necessary details when required by the authorities. Non-compliance with the rules may result in penalties or other legal consequences.
FAQ
Both employers and employees contribute to the Labour Welfare Fund. The contributions are typically a percentage of the employee's salary and are mandated by state-specific regulations.
Benefits provided under the Labour Welfare Fund include financial assistance during emergencies, such as medical expenses, education expenses for children, housing assistance, and other welfare schemes.
Contributions to the Labour Welfare Fund are typically calculated as a percentage of the employee's salary. The exact percentage may vary depending on the state regulations and the salary bracket of the employee.
The applicability of the Labour Welfare Fund depends on the state laws and regulations. While most states mandate the fund for certain categories of organizations, such as factories and establishments with a certain number of employees, the specific criteria may vary.
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