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

The Punjab State Government has enacted the Punjab Labour Welfare Fund Act, 1965 (‘Act’), to conduct various activities for the welfare of labourers through the establishment of a Punjab Labour Welfare Fund (‘Fund’). The Punjab Labour Welfare Fund is administered by the Punjab Labour Welfare Board (‘Board’), which is responsible for identifying and funding activities that will promote the welfare of workers and their families.

Punjab Labour Welfare Fund

The Punjab Labour Welfare Fund was established to improve the working conditions and living standards of workers in Punjab. It is mandatory for all the employees and employers of an organisation covered under the Act to contribute a certain amount to the Fund every month. The employees’ contribution is deducted from their wages. 

The Board utilises contributions made to the Fund to provide various assistance and implement schemes for the employees, workers, or labourers who have contributed to the Fund. 

Labour Welfare Fund Punjab Rules

The Punjab Labour Welfare Fund Rules, 1966, regulate various aspects of the Board. These rules provide the mode of payment, meetings of the Board, budget of the Board, additional expenditures, maintenance of accounts and audit, etc. 

Punjab Labour Welfare Fund Applicability

The Punjab Labour Welfare Fund Act provide that the following organisations must contribute to the Fund: 

• A factory established under the Factories Act, 1948 employing one or more persons 
• A motor omnibus service employing one or more persons
• A society registered under the Societies Registration Act, 1860, and charitable or other trusts employing 20 or more persons

All employers and employees working in the above organisations are covered under the Act and must contribute to the Fund. 

Punjab Labour Welfare Fund Contribution

The employers and employees working in the establishments covered under the Act must contribute to the Fund every month. They must contribute contribute towards the fund within the last date of that month, and the returns are filed half-yearly on 15th April and 15th October.

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

• Employer contribution: Rs.20
• Employee contribution: Rs.5
• Total contribution: Rs.25

Punjab Labour Welfare Fund Benefits

The Board provides the following benefits and welfare schemes to the employees or workers who contribute to the Punjab Labour Welfare Fund:

Loan Scheme

The Board provides interest-free loans to workers to buy the following items:

Shagun Scheme

Under the Shagan scheme, the Board provides Rs.31,000 as ‘Shagun’ on the occasion of the daughter’s marriage of a worker or the marriage of a female worker. However, it is given for the marriage of only two girls.

Marriage Loan

The Board provides a loan amount of Rs.30,000 to the workers on the occasion of the marriage of their daughters, repayable in 30 monthly installments.

Stipends for Studies

The Board provides the following amount as a stipend for the studies of children of workers or for the worker to study evening classes in an approved institution/university:

Leave Travel Concession (LTC)

The Board provides Rs.2,000 as LTC to workers once every three years for visiting any religious or historical places in India or their home town.

Subsidy for Purchase of Spectacles, Dentures, and Hearing Aids

The Board provides a subsidy for workers and their family members for getting spectacles, dentures and hearing aids as per the following rates:

Death and Disability Compensation

The Board provides an ex-gratia lumpsum amount of Rs.1,50,000 to the widow and their dependents in case of the natural death of a worker. 

It also provides compensation to workers for partial or full disability in the case of an accident, which is as follows:

• In case of accidental death - Rs.2,00,000 lumpsum
• In case of 100% disablement - Rs.2,00,000 lumpsum
• In case of partial disability - Amount as per the percentage of the disability (Rs.2,000 for every 1% disability), up to a maximum of Rs.2,00,000 

Medical Benefits

The Board reimburses expenditures for workers and their dependents for treating critical illnesses and general surgery.

The Board reimburses the expenses up to a maximum of Rs.1,00,000 or the actual expenditure, whichever is less, for the treatment of the following critical diseases:

• Occupational dermatitis
• Occupational cancer
• Asbestosis
• Silicosis
• Lead poisoning, pesticide poisoning and benzene poisoning
• Occupational asthama
• Toxic jaundice
• Toxic anaemia
• Compressed air illness (Caisson diseases)
• Noise-induced hearing loss
• Toxic nephritis
• Cancer operation or treatment
• Heart surgery
• Kidney transplant

The Board provides Rs.20,000 or the actual expenditure, whichever is less, as financial assistance for the general surgery of the workers or their family members.

Funeral expenses

The Board gives Rs.20,000 as financial assistance upon the death of a worker or a member of his/her family for funeral/cremation expenses. Family means wife or husband, minor sons (including major sons who are physically handicapped or insane and unable to earn), unmarried daughters and parents dependent on the worker.

The Punjab Labour Welfare Fund ensures that the labourers and workers of the low-income sector in Punjab have all types of assistance they need to lead a better life. They can get assistance for the marriage of daughters, studies of children, medical benefits, funeral expenses and more.

Also read about:
1. West Bengal Labour Welfare Fund
2. Telangana Labour Welfare Fund 
3. Tamil Nadu Labour Welfare Fund
4. Delhi Labour Welfare Fund
5. Odisha Labour Welfare Fund