In India, 16 states have adopted the Labour Welfare Fund Act, of which Gujarat is also one. The Gujarat Government has implemented the Gujarat Labour Welfare Fund Act, 1953 (‘Act’) to establish the Labour Welfare Fund Gujarat. The Gujarat Labour Welfare Fund promotes the welfare of labourers and workers employed in certain establishments in Gujarat.

Gujarat Labour Welfare Fund

The Gujarat Labour Welfare Fund Board (‘Board’) was constituted under the Act to establish a Gujarat Labour Welfare Fund (‘Fund’) for carrying out activities that promote labourers’ welfare. The Board collects contributions from the employees and employers of the establishments covered under the Act and offers many benefits to the employees contributing to the Fund.

All employers and employees covered under the Act must contribute a certain amount to the Fund half-yearly. The employer, along with his/her contribution, will deduct the contribution of the employees from their salary or wages and pay it to the Fund on their behalf. The Board uses these contributions to conduct many activities and implement labour-benefit schemes for the employees.

Gujarat Labour Welfare Fund rules

The Gujarat Government has also adopted the Labour Welfare Fund (Gujarat) Rules. These rules provide the mode of contribution and payment towards the Fund, notice for payment of unpaid accumulations and fines, meetings of the Board, the budget of the Board, maintenance of audit and accounts of the Fund, etc. The Gujarat Labour Welfare Fund Act and Rules applies to the entire state of Gujarat. 

Gujarat Labour Welfare Fund applicability

The Act covers the following establishments in Gujarat:

• A factory established under the Factories Act, 1948 employing one or more persons
• A tramway or motor omnibus service employing one or more persons
• A shop or commercial establishment under the Bombay Shops and Establishments Act, 1948, employing ten or more persons

The Act covers all employees employed for hire or reward directly to do any unskilled, skilled, technical, clerical, supervisory or manual work in an establishment but does not include the following persons:

• Employed in a managerial capacity
• Employed in a supervisory capacity with wages exceeding Rs.3,500 per month

Gujarat Labour Welfare Fund contribution

The employers and employees working in the establishments 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 Gujarat Labour Welfare Fund is as follows:

• Employer contribution: Rs.12
• Employee contribution: Rs.6
• Total contribution: Rs.18

Gujarat Labour Welfare Fund benefits

The Gujarat Labour Welfare Fund Board utilises the money in the Fund for the following activities to benefit the workers:

• Establishment of social education and community centres, including reading rooms and libraries 
• Community necessities 
• Games and sports
• Excursions, tours and holiday homes 
• Entertainment and other forms of recreation 
• Home industries and subsidiary occupations for unemployed persons and women  
• Corporate activities of a social nature
• Cost of administering the Act, including the allowances and salaries of the staff 
• Such other objects that would improve the standard of living and social condition of workers in the opinion of the Gujarat Government

The Board is also running various welfare schemes. The employees and labourers who have contributed to the Fund can get the benefits provided under the welfare schemes administered by the Board.