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

A Telangana Labour Welfare Fund (‘Fund’) was established in Telangana under the Telangana Labour Welfare Fund Act, 1987 (‘Act’), dedicated to promoting the welfare of labourers in the state. In addition, a special council composed of representatives of employers, employees and the state are created to oversee the effective implementation of these social security systems.

Telangana Labour Welfare Fund

The Telangana Labour Welfare Board (‘Board’) was established under the Act to administer the Telangana Labour Welfare Fund, where employees and employers contribute financially to help labourers in need. It provides financial support to improve working conditions, ensure social security and raise the standard of living of labourers. Both employees and employers to whom the Act applies contribute to the Fund to support various welfare initiatives. 

Telangana Labour Welfare Fund Rules

The Telangana Government has adopted the Telangana Labour Welfare Fund Rules. These rules provide the method of payment of dues, contribution to the Fund, mode of payment from the Fund to labourers, budget of the Board, maintenance of audit and accounts of the Fund, etc. The Telangana Labour Welfare Fund Act and Rules applies to the entire state of Telangana. 

Telangana Labour Welfare Fund Applicability

The Telangana Labour Welfare Fund Act applies to the following establishments in Telangana: 

• A factory established under the Factories Act, 1948 employing one or more persons
• A motor transport undertaking employing one or more employees
• Establishments registered under the Andhra Pradesh Shops And Establishments Act, 1966, employing twenty or more employees
• A registered society, a charitable trust or any other trust employing twenty or more employees

Employees mean a person hired for at least a period of thirty days in a year to do any work, including unskilled, skilled, manual, supervisory, clerical or technical work, in an establishment but does not include the below employees:

• Employed in a managerial capacity
• Employed in a supervisory capacity with wages exceeding Rs.1,600 per month
• Employed as an apprentice or on a part-time basis

Telangana Labour Welfare Fund Contribution

The employers and employees of the establishments covered under the Act must contribute to the Telangana 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.5
• Employee contribution: Rs.2
• Total contribution: Rs.7

Telangana Labour Welfare Fund Benefits

The Telangana Labour Welfare Fund Board utilises the Fund money for the following activities:

• Establishment of labour welfare centres
• Community necessities 
• Excursions, tours and holiday homes 
• Reading rooms and libraries
• Games and sports
• Entertainment and other forms of recreation 
• Home industries and subsidiary occupations for unemployed persons and women  
• Convalescent homes for tuberculosis patients
• Vocational training
• Pre-schools and nutritious food for children of employees
• Construction and maintenance of the labour welfare centre buildings
• Medical aid to employees for specialised treatment in deserving cases

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, which are as follows:

Medical Assistance 

The Board provides financial assistance up to Rs.20,000 to labourers and their family members undergoing the following treatment: kidney treatment, cancer, heart disease, brain tumour, abortion treatment, AIDS, paralysis and Trauma care (treatment of injuries in accidents). However, this assistance is not provided to labourers receiving medical assistance from their employers.

Accidental Death Assistance

The Board provides financial assistance for accidental death of Rs.30,000. The worker’s family members must apply within one year from the worker’s death to receive this financial assistance.

Natural Death Assistance 

The Board provides financial assistance for the natural death of a worker of Rs.10,000. The worker’s family members must apply within one year from the worker’s death to receive this financial assistance.

Financial Assistance for Disability

The Board provides financial assistance in the case of disability of a worker due to an accident of up to Rs.20,000. The financial assistance provided is as follows: 

• For disability of 25% to 40% - Rs.10,000 
• For disability of 41% to 49% - Rs.15,000 
• For disability above 50% - Rs.20,000

Funeral Assistance 

The Board provides funeral assistance of Rs.5,000 towards the funeral expenses of the deceased worker. 

Marriage Assistance 

Marriage assistance of Rs.10,000 is provided as a fixed deposit on the occasion of the marriage of the daughter of a worker or a female worker. However, the worker must be contributing to the Fund for at least three years at the time of application.

Maternity Assistance 

Maternity assistance of Rs.5,000 is provided to a female worker or the wife of a worker who gives birth to a child of up to only two children. However, this scheme is not applicable to labourers covered under the Employee’s State Insurance (ESI) scheme and labourers receiving alternative medical care from the employer. 

Adarsh ​​Family Incentive

An assistance of Rs.2,000 is provided for labourers who have undergone a family planning operation. All labourers and their spouses are eligible for this scheme benefit.

Educational Incentive

The children of labourers will receive the following scholarships based on merit every year:

• Class X students - Rs.1,000 
• ITI course - Rs.1,000 
• Polytechnic - Rs.1,500 
• Engineering - Rs.2,000 
• Medicine - Rs.2,000 
• Law - Rs.2,000 
• BSC - Rs.2,000 
• B.Pharmacy - Rs.2,000 
• M.Pharmacy - Rs.2,000 
• BBA - Rs.2,000 
• MBA - Rs.2,000 
• Diploma in laboratory technician course - Rs.Rs.2,000 

Special Educational Incentive 

A scholarship of Rs.4,000 will be given every year to students with disabilities.

Training

Free training is given to the family members of labourers in trades like embroidery and sewing to increase the family income at the Labor Welfare Board office in Hyderabad.

Annual Sports Festivals and Cultural Events

Every year, the Board organises sports festivals and cultural competitions for the labourers and gives prizes to the winners for developing the spirit of sportsmanship among the labourers.

Telangana Labour Welfare Fund Schemes Application Process 

The application procedure for Telangana Labour Welfare Fund welfare schemes is as follows: 

Step 1: Visit the labour department office of Telangana.

Step 2: Collect an application form from the designated officer.

Step 3: Complete all sections of the application form and ensure that no details are omitted.

Step 4: Verify that all required documents are attached to the application.

Step 5: Submit the application form along with the necessary documents to the designated officer. The necessary documents vary for each welfare scheme.

Step 6: Pay the fee as directed by the authority.

After receiving the application, the concerned authority will review your application and accompanying documents. If everything is in order, your application will be accepted. The authority can request additional information from the applicant if it is necessary for a thorough assessment.

The entire application process is expected to be completed within 30 days or within the time limit communicated by the concerned authority of the department.

The Telangana Labour Welfare Fund provides financial or essential support for those who need it to improve working conditions, social security and the overall quality of life of labourers. Both the employers and employees working in factories, motor transport undertakings, shops, commercial establishments, society, or charitable trusts must mandatorily contribute to this fund. 

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