Labour Welfare Fund

Term refers to all such services, amenities and facilities to the employees that improve their working conditions as well as standard of living. It’s interpretation varies from state to state as per their socio-economic condition, degree of industrialization and level of maturity of fundamental democratic values.

With a view to extend social assistance to workers in certain sectors, the Central Government has set up five different Labour Welfare Funds under the Ministry of Labour & Employment to provide Housing, Medical Care, Educational and Recreational facilities to workers employed in Beedi Industry, certain Non-coal Mines and Cine Industry. These five Labour Welfare Funds have been set up under the following Acts:

Mica Mines Labour Welfare Fund Act, 1946: Has been enacted to provide for constitution of a fund for financing the activities which promote welfare of labour employed in the Mica Mining Industry,

Mica Mines Labour Welfare Fund Act, 1946: Has been enacted to provide for constitution of a fund for financing the activities which promote welfare of labour employed in the Mica Mining Industry,

Limestone and Dolomite Mines Labour Welfare Fund Act, 1972: Has been enacted to provide for the levy and collection of Cess on limestone and dolomite for financing the activities which promote welfare of persons employed in the Limestone & dolomite Mining Industry,

Iron Ore Mines, Manganese, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976: Has ben enacted to provide for financing the activities which promote welfare of persons employed in Iron Ore Mines, Manganese Ore Mines or Chrome Ore Mines;

Beedi Workers Welfare Fund Act, 1976: Has been enacted to provide for financing the activities which promote welfare of persons engaged in the Beedi Industry; and Cine Workers Welfare Fund Act, 1981: Has been enacted to provide for financing the activities which promote welfare of the Cine-workers.


These funds are financed out of the proceeds of Cess levied under respective Acts of the Central Legislature. The above Acts mandate that the funds collected in the respective Labour Welfare Funds may be applied by the Central Government to met the expenditure incurred in connection with providing facilities which are necessary for welfare of the workers employed in the above industries.
Apart from the Central legislations governing welfare of the workers employed in the above industries, almost all states have created Labour Welfare Fund under their specially enacted laws or under adopted law of a different state for welfare of the workers employed in other industries. These state specific Labour Welfare Funds are funded by contributions from the employers. The state specific laws dealing with Labour Welfare Fund are listed as follows:

Andhra Pradesh Welfare Fun Act, 1987

Karnatka Labour Welfare Fund Act, 1965

Maharashtra Labour Welfare Fund Act, 1953

Tamil Nadu Labour Welfare Fund Act 1972

U.P. Labour Welfare Fund Act, 1965

West Bengal Labour Welfare Fund Act, 1974

Bombay Labour Welfare Fund Act, 1953 [ Applicable in Delhi & Gujrat ]

Goa, Daman & Diu Labour Welfare Fund Act 1986

Punjab Labour Welfare Fund Act, 1965 [Also Applicable in Haryana ]

Kerala Labour Welfare Fund Act, 1975

Kerala shoaps & Commercial Establishments Worker’s Welfare Fund Act , 2006

Madhya Pradesh Labour Welfare Fund Act, 1968

Orissa Labour Welfare Fund act, 1996