Since there is so little information available on local statutes despite their importance to specific issues, I have decided to write down about the ones that I work with. Since I am working out of Mumbai, I usually get to deal with Bombay statutes most of the time. I have already written about a couple of statutes over here earlier. Today I am going to write about the Maharashtra Labour Welfare Fund. There is also a Bombay Welfare Fund Act which is applicable in Delhi, but interestingly not in Mumbai. Maharashtra Labour Welfare Fund Act is applicable to Pune also, just like rest of Maharashtra.
The Maharashtra Labour Welfare Fund Act, 1953 provides for the constitution of a fund for the financing of activities to promote welfare of labour in the state of Maharahstra. Any establishment which is covered under the Bombay Shops and Establishments Act, 1948 or employs at least 5 employees is required to make bi-annual contributions in the months of June and December every year to the Maharashtra Labour Welfare Fund with respect to each of its employees including contract labourers except those employed in managerial capacity or supervisory role drawing monthly salary of more than INR 3,500. For this purpose, apart from paying its own contribution with respect to each employee covered under the statute, the employer needs to deduct a contribution amount from the salary of the employee as well and submit such amount to the labour welfare fund. For this purpose, employers are allotted code numbers. The Government also adds some contribution with this which goes to the Labour Welfare Fund administered by a Welfare Commissioner. The employer has to apply for allotment of code number to the Welfare Commissioner, Maharashtra Labour Welfare Board.
Calculation of MLWB is done, just through the contribution of both the company as well as the labourer. The employees contribution is Rs. 6.00 for an employee who earns Rs. 3000/- while it is Rs.12 for those who earn more than 3000. Whereas the company contributes is three times what the employee contributes, that is – Rs.18 and Rs. 36 for employees who draw Rs. 3000 and more than Rs. 3000 respectively.
Dues and penalty
Any dues under this act are treated as land revenue due to the state government. If an employer is not paying contributions due to the Board, the commissioner will issue a notice to pay the dues. If the employer fails to pay despite notice, interest will be charged on the dues. If the employer does not deduct employees contribution in a timely manner, employer may have to pay it himself. There is no provision for imprisonment in the statute.
There are similar welfare fund acts in many other states.
This is how a return that one needs to file looks like:
Click here to download.