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.
Labour Welfare Fund
- Any amount raised by the board.
- All unpaid accumulations due to workers.
- All fines realised from the workers.
- Deduction made under the Payment of Wages Act.
- Contribution from employers, employees and Government.
- Any voluntary donation.
- Any fund transferred under the subsection of Tamil Nadu Labour Welfare Fund Act.
- Any amount borrowed under the section of Tamil Nadu Labour Welfare Fund Act.
- Any unclaimed amount credited to the Government in accordance with the rules made under the Minimum wages Act and Payment of Wages Act.
- Any fines imposed and realised from employers by courts for violation of labour laws.
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 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
FAQs
Contribution to the Fund by Employer and Employee?
Labour Welfare Fund Contribution Rate
| S. No | Year | Employees Contribution | Employers Contribution | Government Contribution |
| 1. | 1973-1981 | Rs.1 | Rs.2 | Nil |
| 2. | 1982-1995 | Rs.2 | Rs.4 | Rs.2 |
| 3. | 1996-1997 | Rs.3 | Rs.6 | Rs.3 |
| 4. | 1998-2008 | Rs.5 | Rs.10 | Rs.5 |
| 5. | 2009-2014 | Rs.7 | Rs.14 | Rs.7 |
| 6. | 2015 onwards | Rs.10 | Rs.20 | Rs.10 |
Labour Welfare Schemes?
Labour Welfare Centers
Under labour welfare centres, various centres are functioning in the State, which consists of Tailoring section, pre-school and Reading room.
Tailoring Centres
Under this tailoring scheme, the spouse and unmarried daughters or sisters of workmen who are the contributors of the labour welfare fund are eligible to undergo training in tailoring centre.
- Course Details
The trainees are required to pay an amount of Rs.150 per month as stipend. The duration of the course is for one year commencing from January. At the end of the program, the trainees are allowed to take examination carried by the State Government. In each centre, the first rank holders given with a prize of sewing machine for lower as well as a higher grade.