Labour Welfare Fund - "Social security to workers in unorganized sector"
Labour welfare fund
is a statutory contribution managed by individual state authorities.
The state labour welfare board determines the amount and frequency of the contribution. The contribution and periodicity of remittance differ with every state.
welfare is an aid in the form of money or necessities for those in
need. It provides facilities to labourers in order to improve their
working conditions, provide social security, and raise their standard of
justify the above statement, various state legislatures have enacted an
Act exclusively focusing on the welfare of the workers, known as the Labour
Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.
scope of this Act is extended to housing, family care & worker's
health service by providing medical examination, the clinic for general
treatment, infant welfare, womenís general education, workers activity
facilities, marriage, education, funeral etc. State-specific Labour
Welfare Funds are funded by contributions from the employer, employee
and in a few states, the government also.
In order to provide social security to workers, the government has introduced the Labour Welfare Fund Act.
In general, the money in the Fund may be utilized by the Board to defray expenditure on the following:
1. Educational facilities for the children of the workers.
2. Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families.
3. Transport facilities to the workers for commuting to work.
Recreational facilities in the form of music, dance, drama, games, sports,
paintings, etc. are usually offered to the employees to build a
wholesome working environment.
5. Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates.
6. Excursions, tours and holiday homes.
7. Home industries and subsidiary occupations for women and unemployed persons.
8. Reading rooms and libraries.
9. Vocational training.
10. Nutritious food to children of employees.
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