Tamil Nadu Labour Welfare Fund: Applicability, Contribution, Rules, Benefits

The Tamil Nadu Labour Welfare Fund (‘Fund’) is a fund that provides welfare benefits to all workers in the state of Tamil Nadu. It was established under the Tamil Nadu Labour Welfare Fund Act 1972 (‘Act’). The Tamil Nadu Labour Welfare Board (‘Board’), a statutory body constituted under the Act, manages the Fund.

Tamil Nadu Labour Welfare Fund

The government constituted the Tamil Nadu Labour Welfare Board in 1971 to promote the welfare of the employees and their dependents. The government also enacted the Tamil Nadu Labour Welfare Fund Act in 1972 and established the Tamil Nadu Labour Welfare Fund. The employees and employers covered under the Act must mandatorily contribute to the Fund yearly once. The fund contributions are used to provide social and welfare benefits to the employees and workers in Tamil Nadu.

Tamil Nadu Labour Welfare Fund Rules

The government also enacted the Tamil Nadu Labour Welfare Fund Rules, 1973. These rules provide the mode of contribution, rate of contribution, contribution date, method of payment of fines, maintenance of audit and accounts of the Fund, budget of the Board, etc. The Tamil Nadu Labour Welfare Fund Act and Rules applies to the entire state of Tamil Nadu. 

Tamil Nadu Labour Welfare Fund Applicability

The Labour Welfare Fund Tamil Nadu provides benefits to all employees in the state working in the following organisations: 

• Factories covered under the Factories Act 1948.
• Motor Transport undertakings established under the Motor Transport Workers Act 1961.
• Plantations covered under the Plantations Labour Act 1951.
• Catering establishments covered under the Tamil Nadu Catering Establishments Act 1958 and employing 5 or more persons.
• Establishments under the Tamil Nadu Shops and Establishment Act hiring 5 or more employees.

This means that all employees working in these establishments are eligible to receive Fund benefits, except the following:

• Employees employed in a managerial capacity.
• Employees employed in a supervisory capacity having wages of more than Rs.15,000.
• Employees employed as an apprentice or on a part-time basis.

Tamil Nadu Labour Welfare Fund Contribution

The employers and employees of the establishments covered under the Act must contribute to the Tamil Nadu Labour Welfare Fund once a year within 31 December, and the returns must be filed by 31 January of the next year. The amount of contribution is as follows:

• Employer contribution: Rs.40
• Employee contribution: Rs.20
• Total contribution: Rs.60

Tamil Nadu Labour Welfare Fund Benefits

The Tamil Nadu Labour Welfare Fund was created to give labourers, employees and workers a better standard of living, working conditions, and security. Here are all the benefits provided by the Board to the workers contributing to the fund:

• Employees or their sons or daughters who have attained their legal age of marriage are eligible for marriage assistance of Rs.20,000. 
• The following scholarship benefits are provided to the children of workers:
  • For a post-graduate degree in Engineering, Medical, Law, Agriculture and Physical Education - Rs.12,000
  • For a bachelor’s degree in Engineering, Medical, Law, Agriculture and Physical Education - Rs.8,000
  • For a diploma in Engineering, Medical and Physical Education - Rs.5,000
  • For higher secondary - Rs.4,000
  • For ITI - Rs.4,000
• Reimbursement to workers up to Rs.1,000 for the cost of spectacles upon presentation of a doctor's prescription.
• Children of workers who secure first ten places in 10th and 12th-grade public exams can get cash awards of Rs.2,000 and Rs.3,000, respectively.
• Reimbursement of Rs.1,000 for basic computer training to five employees or dependants in each revenue district.
• If a worker passes away because of a natural death, their dependents are eligible to get Rs.50,000 and Rs.5,000 for funeral expenses. 
• If a worker passes away due to an accident, their dependents can get an accidental death assistance benefit of Rs.2 lakh and Rs.5,000 to cover funeral expenses.
• The following book allowances are provided to the workers’ children to support their education:
  • For students in higher secondary - Rs.1,000
  • For students studying diploma - Rs.1,500
  • For students studying bachelor’s degree - Rs.2,000
  • For students studying a post-graduate degree - Rs.3,000

The Tamil Nadu Labour Welfare Fund plays a vital role in promoting the welfare of workers and their dependents in the state of Tamil Nadu. This Fund has played a significant role in improving the education and skills of workers’ children and has provided financial assistance to workers and their families in times of need.

Also read about:
1. West Bengal Labour Welfare Fund
2. Telangana Labour Welfare Fund