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

In India, 16 states have enacted the Labour Welfare Fund Act. One of the 16 states is Kerala, which has implemented the Kerala Labour Welfare Fund Act, 1975 (‘Act’). This Act provides for the constitution of the Labour Welfare Fund Kerala to promote the welfare of labour in the State of Kerala.

Kerala Labour Welfare Fund

The Kerala Government constituted the Kerala Labour Welfare Fund Board (‘Board’) under the Act and established the Kerala Labour Welfare Fund (‘Fund’). The Board collects contributions from the employees and employers of the establishments covered under the Act to provide various benefits to the employees contributing to this fund.

The employer, along with his/her contribution, will deduct the contribution amount from the salary or wages of the employees and pay on their behalf to the Fund. The Board utilises these contributions to conduct activities and provide labour welfare facilities for the workers.

Kerala Labour Welfare Fund rules

The Kerala Government has adopted the Kerala Labour Welfare Fund Rules. These rules provide the notice for payment of unpaid accumulations and fines, mode of payment and contribution towards the Fund, meeting and budget of the Board, maintenance of audit and accounts of the Fund, etc. The Kerala Labour Welfare Fund Act and Rules extend to the entire state of Kerala. 

Kerala Labour Welfare Fund applicability

The Act covers the following establishments in Kerala:

• Shops or commercial establishments that come under the Kerala Shops and Commercial Establishment Act, 1960, employing two or more persons
• Businesses growing rubber, tea, cardamom, coffee, oil palm or cocoa in which ten or more persons are employed 
• Establishments employing one or more persons in:
  • A factory established under the Factories Act, 1948
  • A motor transport undertaking
• Society registered under the Societies Registration Act, 1860 or the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955, employing more than twenty persons

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

• Employed in a managerial capacity
• Employed as an apprentice or on a part-time basis

Kerala Labour Welfare Fund contribution

The frequency of contribution to the Kerala Labour Welfare Fund is half-yearly or monthly. The contribution is monthly for shops and commercial establishments under the Shops and Establishment Act. In such establishments, employers and employees contribute towards the fund within 30th of that month, and the returns are filed by 5th of the next month. 

The contribution is half-yearly for other establishments covered under the Act. The employers and employees contribute on 30th June and 31st December every year, and the returns are filed on 15th July and 15th January with the Board. 

The amount of deduction or contribution amount towards the Kerala Labour Welfare Fund is as follows:

Kerala Labour Welfare Fund benefits

The Board utilises the money in the Fund for the following activities:

• Social education and community centres, including reading rooms and libraries
• Vocational training
• Games and sports
• Entertainment and other forms of recreation
• Convalescent homes for tuberculosis patients
• Community necessities
• Holiday homes in health resorts
• Part-time employment for housewives of employees
• Higher education
• Preschools
• Nutritious food for children of employees
• Employment opportunities for disabled employees
• Cost of administering this Act, including the allowances and salaries of the staff 
• Such other objects which would improve the standard of living and social condition of labourers, in the opinion of the Kerala Government

The Board is also administering various welfare schemes for the benefit of workers, employees and labourers who have contributed to the Fund, which are as follows:

High School Education Grant 

The Board provides high school education grants to the children of workers studying in standard 8 to 10. They get financial assistance of Rs.600 each. 

Cash Award (SSLC, CBSE, ICSE, ISE) 

The Board will distribute 25 cash awards in each district. Out of this, those who have obtained an ‘A+’ grade for all subjects will be awarded Rs.1,000 each, and those who have not obtained an ‘A+’ grade for all subjects will be awarded Rs.600 each. Two cash awards will be provided to a boy and a girl who have secured the highest marks in the SC/ST category.

Higher Education Grant

The Board provides financial assistance for higher education to the children of workers who contribute to the Fund (subscribers to the Fund). A grant of Rs.800 to Rs.3,600 will be given to students studying from plus one to post-graduation, depending on the course of study. Students who receive the first-year grant can get it renewed every year and receive the grant till the completion of the course.

I.T.I Training Programme 

The children of subscribers to the Fund will be given admission to industrial training courses in any of the 13 trades in 12 government ITIs in Kerala based on merit. Each selected student will receive a stipend of Rs.300 per month, and 20% of the total seats will be reserved for SC/ST students.

Computer Training Programme

The Board will provide computer training for the children of the subscribers to the Fund. Under this scheme, the LBS Centre for Science and Technology, Thiruvananthapuram, offers admission for the DCA course to 50 students, DITS in Kannur offers admission for one and half year PGDCA course to 50 students, Kozhikode and Ernakulam Centres offer admission for PGDCA course to 50 students each based on marks.

Medical/Entrance Coaching Benefit

Two students who are economically backward with high mark scores in plus one and plus two in each district will receive Rs.5,000 each.

Library Grant

Libraries run by trade unions or establishments for the benefit of workers will be provided with financial assistance of Rs.10,000 to purchase books.

Tour Subsidy

The Board offers tour subsidies to subscribers to the Fund and their family members to visit Thekkady. Tour subsidy is given at the rate of Rs.30 paise per km for each beneficiary above 12 years and Rs.15 paise between 6 to 12 years, respectively.

Marriage Benefit

The Board provides financial assistance for marriage to the female workers and daughters of workers whose monthly income is not more than Rs.20,000 per month. However, only two daughters of a subscriber will be given this benefit for their marriage. The amount of benefit is Rs.7,500.

Maternity Benefit

The Board provides financial assistance to female workers not receiving maternity benefits under the Employees’ Compensation Act (ESI) or any other schemes. The Board provides a maternity benefit of Rs.15,000 (Board’s contribution is Rs.2,000, and the government’s contribution is Rs.13,000)

Financial Assistance to Differently-Abled Children

The board provides financial assistance to the unmarried and differently-abled children of the subscribers. The financial assistance of Rs.250 per month will be given to the workers on their retirement. 

Assistance for Medical Treatment

The Board provides financial assistance of a maximum amount of Rs.15,000 to the subscribers for the treatment of critical diseases such as leprosy, tuberculosis, cancer, paralysis, renal disease, heart valve surgery, mental illness and serious other diseases. The subscribers can avail of this benefit in addition to the ESI benefit. 

Financial Aid to Purchase Artificial Device

The Board gives financial assistance for purchasing artificial limbs in the case of accidental disability occurring at work. This benefit is available for subscribers with hearing, visual and speech impairment. The amount of benefit is limited to Rs.7,500.

Post Death Benefit

The Board provides financial assistance of Rs.5,000 to the dependents of those workers who die while at work. 

Assistance for Death by Accident

The Board provides the dependants of the employees who die while at work due to an accident but do not come under the purview of the ESI of Rs.25,000.

Assistance for Cremation

Assistance of Rs.2,000 is provided to the dependants of those employees who die at work for death-related expenditure.