Glossary · HR, Payroll & Labour Law
Labour Welfare Fund
A state-level fund that provides financial assistance and welfare benefits to workers in specified industries, funded by contributions from employers and employees.
LWF is established under the Building and Other Construction Workers Act, 1996 (central) and various state-specific acts. The contribution is nominal (typically ₹5-20 per month per worker, depending on state) and is split between the employer and the employee. The fund is used for medical, educational, and housing assistance to workers, especially in construction, factories, plantations, and mines. Employers must register and file monthly or annual returns with the state Welfare Board.
Examples
A construction company with 50 workers contributes ₹500/month (₹10 per worker) to the Tamil Nadu Labour Welfare Fund, half paid by workers and half by the company.