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
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.
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Thanks for the valuable Inputs , Whereas I have a query , Are Construction Employees covered under MLWF , As per me they have to be exempted as Construction Sites falls under BOCW and not under Bombay Shop Act
HOW ONE CAN KNOW THE DETAILS OF THE ESTABLISHMENT THROUGH LABOUR WELFARE REGISTRAION NUMBER IN MAHARASHTRA STATE.
Sir thanks for the useful guidance . I need a clarification on who will be considered as ” employed in managerial capacity or supervisory role”.
Ours is a Microfinance organisation. Our employee hierarchi in business department is ..field staff, Assistant branch manager, branch operation manager, branch manager and in non field it is executive, senior executive .
LWF is claiming contribution from all the above . Is this correct?
I AM HAVING 4 LABOURS IN MY SHOP . AM I LIABLE TO PAY THE MLWF.
I have queries related to 2 cases:
Case 1:
If employee has worked from April to Nov and in Dec month he has not worked for entire month (0 paid days) then LWF will be deducted for Dec Period in future month or not.
Case 2: If employee has not worked for Jan – Nov and has joined in next Jan, then his Dec salary LWF will be deducted or not in Jan period.
Employees paying as per MLWF act are entitled for several benefits, their children, they themselves and their wife who are within age limit 30 years can get free training for MPSC, UPSC, SSB, Banking exams, Railway recruitment exams etc, call helpline 7722078641
I wanted to avail this free training. Is this genuine??
its kind of contribution, so is there any accumulation refund to employee who paid ?
or its pay Rs.12 and forget it.
Hi Ramanuj,
How can we avail the benefit of LWF?
We are an advertising agency and do not employ any workers. ( Ours is more like a consultancy kind of work) Do we still need to pay for this fund? We are running this business for over last 2 decades and suddenly today someone turned up asking us to pay the amount. Are we liable to pay?
I was working in Mumbai. My employer has deducted the amount Rs. 12 for June 2014 and December 2014 under Advance section of salary slip. and when asked they said it was Labor Welfare Fund (LWF), can they deduct under Advance head without mentioning LWF anywhere else?
Hello Ramanuj,
Your blog articles are very informative. However I have not been able to find any legislation stating that Bombay Welfare Fund Act is applicable in Delhi, but not in Mumbai. Could you tell me the source of this information.
Thank you.
Sir, We are engaged in Works Contract of Air port at Pune . Now they are asking for LWF . I have gone through your nice article and want to confirm that labourers who earn more than Rs.3500/- are under LWF or not.
As per your article what I under stood is , salary range should be 3000 to 3500. Pls confirm
ALL EMPLOYEES HAVING ABOVE 5 PERSONS ARE APPLICABLE FOR MLWF ACT 2012 WITCH IS REVISED FROM MUMBAI LABOUR WELFARE ACT 1953 TO MAHARASHTRA LABOUR WELFARE ACT 2012 ALL EMPLOYEES HAVING SALARY ABOVE INR 3000/- ARE APPLICABLE LWF DEDUCTIONS
Dear Sir. Thank you for your article & format.
for those who earn more than 3000, there is deduction of rs.12/-
I wanted to know whether the deduction is done monthly or just twice in one year.
It has to be deducted over the period of 6 months i.e every month deduction has to be made n has to be paid in 6 months
Thank you sir 🙂
DEDUCTIONS DONE QUARTERLY (6 MONTHLY) JUNE & DEC ONLY
What is salary means?? It is Basic or Gross???
gross
Good and informative post . thanks
was just wondering why an extra 12 Rs were cut from my salary, when i found your post. Thanks.
the funds are used for employees welfare activities
GOOD POST…