Andhra Pradesh Labour Welfare Fund: Applicability, Contribution, Rules, Benefits

In India, many states have enacted the Labour Welfare Fund Act. Sixteen states have adopted the Labour Welfare Fund Act, out of which Andhra Pradesh has also adopted the Andhra Pradesh Labour Welfare Fund Act, 1987 (‘Act’). This Act provides social security benefits for the workers and labourers in Andhra Pradesh.

Andhra Pradesh Labour Welfare fund

The Labour Welfare Fund Act provides for establishing an Andhra Pradesh Labour Welfare Fund (‘Fund’) to finance activities promoting labour welfare in Andhra Pradesh. As per the Act, the Andhra Pradesh Labour Welfare Board (‘Board’) was established to administer the Labour Welfare Fund and carry out other functions specified under the Act. The Act provides rights to safeguard and benefit labourers and employees working in certain establishments. 

Andhra Pradesh Labour Welfare Fund rules

The Andhra Pradesh Government has adopted the Andhra Pradesh Labour Welfare Fund Rules. These rules provide the mode of contribution to the Fund, notice for payment of unpaid accumulations and fines, mode of application for grant from the Fund, budget of the Board, meetings of the Board, maintenance of audit and accounts of the Fund, etc. The Andhra Pradesh Labour Welfare Fund Act and Rules applies to the entire state of Andhra Pradesh. 

Andhra Pradesh Labour Welfare Fund applicability

The Andhra Pradesh Labour Welfare Fund Act applies to the following establishments in Andhra Pradesh: 

• A factory established under the Factories Act, 1948 employing one or more persons
• A motor transport undertaking employing one or more employees
• Establishments registered under the Andhra Pradesh Shops And Establishments Act, 1966, employing twenty or more employees
• A registered society, a charitable trust or any other trust employing twenty or more employees

Employees means a person hired to do any work, including skilled, unskilled, supervisory, manual, clerical or technical work, in an establishment but does not include the below employees:

• Employed in a managerial capacity
• Employed in a supervisory capacity with wages exceeding Rs.1,600 per month
• Employed as an apprentice or on a part-time basis

Andhra Pradesh Labour Welfare Fund contribution

The employers and employees of the establishments covered under the Act must contribute to the Andhra Pradesh Labour Welfare Fund once a year within 31 December, and the returns must be filed by 31 January of the next year. The amount of contribution is as follows:

• Employer contribution: Rs.70
• Employee contribution: Rs.30
• Total contribution: Rs.100

Andhra Pradesh Labour Welfare Fund benefits

The Andhra Pradesh Labour Welfare Fund Act provides that the contributions made to the Fund by employers and employees can be used for the following purposes:

• Create Labour Welfare Centres under the control of the Labour Department
• Maintenance and construction of the Labour Welfare Centre buildings
• Reading rooms and libraries
• Community necessities
• Games and sports
• Excursion tours and holiday homes
• Vocational training
• Entertainment and other forms of recreation
• Preschools
• Corporate activities of a social nature
• Convalescent homes for tuberculosis patients
• Nutritious food for children of employees
• Home industries and subsidiary occupations for women and unemployed persons
• Medical aid to employees for specialised treatment in deserving cases
• Such other objects that would improve the standard of living and social conditions of labour in the opinion of the State Government

The Fund contribution is also used to facilitate the following for the employees:

• Providing medical facilities for diseases arising out of employment
• Providing medical facilities for injuries sustained during employment
• Providing a lump sum compensation in case of permanent disability or death arising from accidents at work
• Providing a monthly pension to employees who suffer permanent incapacity due to accident or disease occurring during employment
• Providing gratuity to specific categories of employees
• Establishing Labour Welfare Boards in each district to implement programmes for the welfare of labourers

The main objective of the Andhra Pradesh Labour Welfare Fund Act is to establish the Labour Welfare Fund to provide financial assistance to distressed workers. The employers and employees working in the establishments to which the Act applies contribute to the Fund every year. The contributions made to the Fund are used to assist workers in distress and provide many facilities, such as medical facilities, accident compensation, gratuity, etc., for them and their dependents.