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Delhi Labour Welfare Fund: Applicability, Contribution, Rules, Benefits

By Mayashree Acharya

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Updated on: Jun 19th, 2024

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2 min read

The government constituted the Delhi Labour Welfare Fund (‘Fund’) to ensure benefits to all labourers and workers in Delhi. The Delhi Labour Welfare Board (‘Board’) manages and maintains this fund. 

Delhi Labour Welfare Fund

The Delhi Labour Welfare Fund is an extension of the Bombay Labour Welfare Fund Act of 1953 (‘Act’). In the year 1998, the Delhi Government took the initiative to create the Labour Welfare Fund Delhi. The main purpose of this fund is to equip the workers and their families with essential skills to develop their socio-economic status. It is mandatory for all the employees and employers of an organisation covered under the Act to contribute to this fund twice a year. 

Delhi Labour Welfare Fund Rules

The Delhi Labour Welfare Fund Rules of 1977 regulate various aspects of the Board. These rules provide the mode of payment from the Fund to labourers, method of payment of dues, meetings of the Board, delegation of functions of the Board, budget of the Board, maintenance of registers by employers, etc. 

Delhi Labour Welfare Fund Applicability

The Delhi Labour Welfare Fund Act and Rules provide that the following organisations employing 5 or more persons must contribute to the Delhi Labour Welfare Fund: 

  • A factory established under the Factories Act, 1948 
  • A tramway, motor omnibus service, or motor transport undertaking under the Motor Transport Employees Act, 1961
  • An establishment under the Delhi Shops and Establishments Act, 1954

All employees working in the above organisations are covered under the Act, except the following:

  • A person employed in a managerial capacity or supervisory capacity having wages exceeding Rs.2,500 per month
  • Employed as an apprentice under the Apprentice Act, l961. 

Delhi Labour Welfare Fund Contribution

The employers and employees working in the establishments of Delhi and covered under the Act must contribute to the Fund half-yearly. They must contribute on 30th June and 31st December every year, and the returns should be filed on 15th July and 15th January with the Board. 

The amount contribution amount towards the Delhi Labour Welfare Fund is as follows:

  • Employer contribution: Rs.2.25
  • Employee contribution: Rs.0.75
  • Total contribution: Rs.3

Delhi Labour Welfare Fund Benefits

The main purpose of the Delhi Labour Welfare Fund is to provide support and services to workers or employees and their families. This Fund’s benefits help improve the quality of life of employees and their families and ensure they have access to the resources they need to thrive. Here are some of the essential benefits of the Delhi Labour Welfare Fund:

  • This Fund provides mobile creches and schools for the children of workers. This helps ensure that children have access to education and childcare, even if their parents work long hours.
  • It also provides emergency medical services to workers and their families. This includes ambulance services, first aid, and hospitalisation.
  • There are many blood banks that operate under this fund to provide blood to workers and their families in need.
  • This Fund operates community/welfare/rehabilitation centres to provide support to workers and their families. This includes services such as counselling, job placement, and vocational training.
  • It offers training and educational programs to workers to help them develop new skills and improve their job prospects.
  • It provides exposure to industrial workers to study the workings of different industrial units and welfare facilities in other states.

The Labour Welfare Fund Delhi is an important resource for workers in Delhi. It provides various benefits to help workers and their families meet their basic needs and improve their quality of life. This Fund’s services are especially important for low-income workers and workers who are employed in all informal sectors.

Also read about:
1. West Bengal Labour Welfare Fund
2. Telangana Labour Welfare Fun
3. Tamil Nadu Labour Welfare Fund

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I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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Delhi Labour Welfare Fund aims to support laborers and workers in Delhi through contributions, offering benefits such as education, healthcare, and vocational training. The Fund is managed by the Delhi Labour Welfare Board and provides essential services to improve workers' quality of life and socio-economic status.

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