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

In India, many states have implemented the Labour Welfare Fund Act, which provides benefits, facilities and social schemes for the employees and labourers working within the state. In Maharashtra, the government enacted the Maharashtra Labour Welfare Fund Act, 1953 (‘Act’), to establish the Maharashtra Labour Welfare Fund (‘Fund’) and provide welfare benefits to the workers employed in establishments or factories in Maharashtra. 

Maharashtra Labour Welfare Fund

As per the Act, the Maharashtra Labour Welfare Fund was established to finance and conduct activities promoting the welfare of labourers in Maharashtra. The Fund applies to the whole state of Maharashtra.

The Fund’s primary objective is to provide welfare benefits and financial assistance to workers and their families or dependents. It aims to promote the well-being of workers and improve their socio-economic conditions. The primary source from where the Fund receives money is through the contributions made by employers and employees. 

All employers and employees covered under the Maharashtra Labour Welfare Fund Act must contribute a certain amount to the Fund half-yearly. The employers, along with their contributions, will also deduct the worker’s contribution amount from their salaries or wages and pay it to the Fund on their behalf. 

Maharashtra Labour Welfare Fund applicability

All establishments or employers covered under the Act employing five or more persons in Maharashtra must contribute to the Fund half-yearly. 

The following establishments are covered under the Act: 

• 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 Bombay Shops and Establishments Act, 1948

Employer means a person employing five or more employees in an establishment and includes a factory manager or a person responsible for controlling and supervising the employees or paying wages.

Employees covered under the Act are persons employed for hire or reward to do unskilled, skilled, manual, supervisory, clerical or technical work as a full-time employee or on contract worker but does not include the following persons:

• A person employed in a managerial capacity 
• A person employed in a supervisory capacity having a salary or wages exceeding Rs.3,500 per month
• Employed as an apprentice under the Apprentice Act, l961. 

Maharashtra Labour Welfare Fund rules

The Maharashtra Labour Welfare Fund Rules, 1953, provide for the working of the Fund and the Maharashtra Labour Welfare Board. The Maharashtra Labour Welfare Board conducts welfare activities and runs various welfare schemes for the benefit of employees. Employees and labourers contributing to the Fund can apply for the various schemes conducted and run by the Maharashtra Labour Welfare Board from the Fund money.  

Maharashtra Labour Welfare Fund contribution

All employers and employees covered under the Act must contribute half-yearly to the Maharashtra Labour Welfare Fund. The date of deduction of the contribution amount is 30 June and 31 December every year. The employers must file the returns to the Maharashtra Labour Welfare Board on or before 15 July and 15 January every year. The table below states the contribution amount:

Maharashtra Labour Welfare Fund benefits

The Maharashtra Labour Welfare Fund provides various benefits to the employees or workers who contribute to the Fund half-yearly. The welfare activities provided by the Maharashtra Labour Welfare Board for the benefit of workers and their families are as follows:

• Establishment of Shishu Mandir (kindergarten) for the welfare of children of workers
• Sewing and handicrafts classes for working family women
• Organising aesthetic and basic fashion design training for women to start their own boutique
• Establishment of library and reading rooms for working families
• Operation of study rooms in the Kamgar Kalyan Bhawan and Lalit Kala Bhawan to aid students in studying peacefully
• Computer training classes at the Kamgar Kalyan Bhawan, Lalit Kala Bhawan and Workers Welfare Center for the workers and their families
• Establishment of a health centre (gymnasium) at the Kamgar Kalyan Bhavan or Lalit Kala Bhavan for workers
• Conducting yoga classes, karate training classes and music classes for the workers and their families

The welfare programmes conducted by the Maharashtra Labour Welfare Board for the workers and worker’s dependents are as follows:

• Organising employment-related training camps for the workers and their families related to mehendi classes, beauty parlour, photography, rangoli classes, screen printing, zari work, fashion designing, laundry and floral decoration
• Organising competition examination guidance lectures for the students of workers who are interested in appearing in civil services exams
• Conducting revival classes from January to March for exams of students in secondary schools
• Personality development training for the students of workers
• Organising career guidance classes to guide the children of workers to take up job-oriented courses of their interest
• Conducting Library Certificate training classes for children of workers

The job-oriented training programmes conducted by the Maharashtra Labour Welfare Board for the workers are as follows:

• Conducting English and foreign language conversation or writing training to workers and their families in French, German, Japanese, Russian and Chinese
• Conducting four-wheeler driving training for employment opportunities at a nominal cost to the workers of low-income groups
• Providing skills training to the workers for free to provide them with employment opportunities

The Maharashtra Labour Welfare Board provides the following scholarships to the children of the workers:

• Scholarship ranging from Rs.2,000 to Rs.5,000 depending on the class the student is studying (class 10th to degree courses) 
• Scholarship to the workers or their family when they gain proficiency in state, national and international level sports ranging from Rs.2,000 to Rs.15,000
• Scholarships for the children of workers for post-graduate education abroad of Rs.50,000
• Providing 50% cost of course textbook as a subsidy to the children of workers
• Financing MS-CIT examination for the workers
• Financing the family members of workers who have passed the first phase of the MPSC competitive exam
• Financing the family members of workers who have passed the first phase of the UPSC competitive exam 

The Maharashtra Labour Welfare Board provides the following healthcare benefits for workers and their families:

• Financial assistance ranging from Rs.5,000 to Rs.25,000 depending on the patient cost to the workers or their families for the treatment of chronic illnesses like cancer, kidney, AIDS, tuberculosis, heart disease and through drug treatment
• Financial assistance of Rs.10,000 to workers unable to do work for livelihood due to disability or disabled by accident when travelling from home to company
• Financial assistance of Rs.1,00,000 for the wife of a worker who commits suicide due to financial constraints on account of the closure of factories or mills

Apart from these above benefits, the Board also conducts various cultural, literary and sports programmes for the workers and provides cash awards to best-performing workers. The workers can apply for various schemes online and offline by applying to the Board.