Revised Haryana Labour Welfare Fund Rules 2023 - New Labour Law Changes

The Labour Welfare Fund (LWF) is a statutory contribution managed by individual state authorities in India. The fund is designed to provide aid in the form of money or necessities to those in need, with the aim of improving working conditions, providing social security, and raising the standard of living for labourers. The contribution to the LWF and the frequency of this contribution varies from state to state, with some states requiring an annual contribution, while others require contributions in June and December each year.

The Labour Welfare Fund Act, enacted by various state legislatures, focuses exclusively on the welfare of workers. It incorporates various services, benefits, and facilities offered to employees by their employers. These facilities are funded through contributions from both the employer and the employee, although the rate of contribution can differ from one state to another.

The scope of the Labour Welfare Fund Act extends to housing, family care, and worker’s health services. It provides for medical examinations, clinics for general treatment, infant welfare, women’s general education, workers activity facilities, and assistance for events such as marriages and funerals. The LWF Act has been implemented in 16 out of 37 states and union territories in India.

The Labour Welfare Fund is not applicable to all categories of employees working in an establishment. Its applicability depends on the wages earned, the designation of the employee, and the total number of employees working in the establishment. The frequency of contributions to the LWF may be annual, half-yearly, or monthly, depending on the specific state Act.

The funds collected under the LWF are utilized for various purposes, including educational facilities for workers’ children, medical facilities for workers and their families, transport facilities for commuting to work, recreational facilities, housing facilities, excursions, tours and holiday homes, home industries and subsidiary occupations for women and unemployed persons, reading rooms and libraries, vocational training, and providing nutritious food to employees’ children.

In the context of the above understanding of the Labour Welfare Fund, a significant revision has been made by the Haryana Labour Welfare Board, under the Government of Haryana. This revision, effective from 1 January 2023, was communicated through Circular No. HLWB/REV/2023/2983-88, dated 27 June 2023. Government Circular

Under the revised rules, each employee is now required to contribute 0.2% of their gross salary or wages to the LWF each month, subject to a maximum limit of INR 31. This is a slight increase from the previous maximum limit of INR 25, which was in effect until 31 December 2022. In addition to the employee’s contribution, the employer is also required to contribute twice the amount of the employee’s contribution to the LWF.

The revised rules also include a provision for annual indexing of the maximum contribution limit to the consumer price index. This means that the maximum contribution limit will be adjusted each year to account for inflation and changes in the cost of living.

In conclusion, the Labour Welfare Fund plays a crucial role in providing social security and improving the standard of living for workers. The recent revisions to the Haryana LWF rules represent a significant change for businesses and employees in Haryana. It is crucial for all parties to understand these changes and ensure compliance to avoid penalties. As always, it is recommended to seek professional advice to navigate these changes effectively.