Benefits under Labour Welfare Fund (LWF)

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Benefits Under LWF

Introduction To LWF

Labour Welfare Fund is succour in the form of money or necessities for those in need. LWF is a statutory contribution managed by every state authority. It helps labourers improve their working conditions, providing social security and raises their standard of living. It can differ from state to state and what assistance is provided by one state might not be available for other states.

Kerala

Kerala provides a range of benefits under LWF like pensions, maternity allowance, marriage allowance, education allowance and death allowance, etc.

Pension: Any member who has remitted the subscription for a minimum period of 10 consecutive years is eligible for pension under the following criteria:

i) the member should have completed 60 years of age,

ii) the member is unable to go for work for more than two years due to some permanent illness.

Family Pension: If a member who has paid a subscription for more than 15 years or a member who is eligible for pension dies, his family is liable to get the family pension

Maternity Allowance: Eligibility for Maternity Allowance for a female member is based on the following criteria:

i) the member should have remitted subscription for at least 1 year and 

ii) the member should not come under the Employees State Insurance Scheme. The Maternity allowance is set at a maximum of three months’ salary or INR 15,000 which is lesser in case of delivery. Whereas in the case of abortion, the allowance will be fixed for a minimum period of six weeks subjected to the above conditions. But a member cannot claim maternity allowance more than two times.

Marriage Allowance: A member who has paid a subscription for a minimum of 3 years is eligible to get a marriage allowance of INR 5,000 to meet the marriage expenses of his/her daughter. An unmarried female member will also get this allowance for her marriage.

Death ex gratia of family members of a member: A member who has paid a subscription for a minimum of 3 years is eligible to get death ex gratia of INR 1,000 to meet the ex gratia expenses of his family members.

Treatment Allowance: A member who has paid subscription for a minimum of 3 consecutive years is eligible to get a treatment allowance of INR 10,000 (maximum) subject to approval from the board throughout the membership.

Allowance for Education: A member who has paid a subscription for at least 1 year is eligible to get an education allowance for his/her child. The Education Allowance scheme is prepared by the board and is implemented subject to approval from Government.

Death Allowance: If a member of the welfare fund dies due to illness/accident, their family is eligible to get INR 5,000 within the first 3-year membership period and INR 1,000 after each year in the membership period with a combined benefit not exceeding INR 20,000 as ex gratia allowance.

Haryana

Haryana aids in financial assistance to dependents. Under this scheme, widow or dependent of the deceased employee are eligible for financial assistance of INR 2,00,000 and/or INR 5,00,000 in case of scheme availed under Mukhya Mantri Shramik Suraksha Yojna.

The following is the procedure to avail of this benefit:  

i) The widow’s application form has to be submitted within two years of the death of her husband

ii) Employee wages slip (previous month)

iii) F.I.R/D.D.R/ Postmortem Report

iv) The death certificate of the employee must be uploaded by the employer

v) Dependents of the deceased employee shall upload an affidavit stating that they are completely legally dependent on the deceased and have not availed of the said scheme of the Board earlier

vi) A ration card or a certified copy of the Aadhar card must also be uploaded

Tamil Nadu

Tamil Nadu aids with Natural and Accident Death Assistance/Funeral Expenses. 

In case of Accidental Death, the dependents are eligible for an Accidental Death Assistance of INR 1,00,000 and INR 5,000 towards Funeral Expenses. Following is the eligibility criteria:

 i) The employee should have been contributing to the Labour Welfare Fund.

 ii) Employee’s monthly salary should not exceed INR 25,000 (basic pay + dearness allowance).

 iii) The claim will be given to the legal heir of the employee.

 iv) The aid request should be applied within one year from the date of death.

In case of natural death, the dependents are eligible for an amount of INR 25,000 and Rs.5,000/- towards Funeral Expenses. Following is the eligibility criteria:

 i) The employee should have been contributing to the Labour Welfare Fund.

 ii) Employee’s monthly salary should not exceed INR 25,000 (basic pay + dearness allowance).

 iii) The claim will be given to the legal heir of the employee.

 iv) The aid request should be applied within one year from the date of death.

Telangana

In Telangana, financial assistance in case of accidental death is provided. The dependents are eligible for a maximum amount of INR 30,000. All the applications shall be made within 1 year from the date of death. Documents to be attached are

i) attested photocopies of the Death Certificate

ii) F.I.R

iii) family members certificate issued by the authority or the employer or a Gazetted Officer and ESI/Aadhar card.

Also, there will be assistance to the dependents of deceased worker contributors under the natural death scheme. The dependents are eligible for a maximum amount of INR 10,000. The application shall be made within one year from the date of death with the same three documents mentioned above.

Gujarat

Gujrat provides a Labour Accident Benefit Scheme; under the above scheme, workers who become disabled during their duty period due to an accident or any other reason at working premises of the establishment are to be provided with financial assistance.

In case of 40% to 70% disability, INR 25,000 to be paid and in case of more than 70% disability, INR 50,000 shall be paid to the employee. Apart from this, the organization must pay INR 12,500 in case of 40% to 70% disability and INR 25,000 for more than 70% disability.

Maharashtra

The Labour Welfare Board of Maharashtra has not specifically introduced a scheme regarding accidental death/natural death/funeral expenses. However, employees may approach the board for any financial assistance as per the contribution made by them.

Delhi

The Labour Welfare Board of Delhi has not specifically introduced a scheme regarding accidental death/natural death/funeral expenses. However, employees may approach the board for any financial assistance as per the contribution made by them.

Karnataka

As per the benefits under LWF for Karnataka, the dependents of the deceased are eligible for Funeral Expenses of INR 5,000. This benefit is made available for the dependants only if the deceased has not claimed any benefits from their employer, Employee Compensation Act, 1923 and any other relevant source.

The application shall be made to the department along with the relevant documents such as the Death Certificate etc. within six months from the date of death.

These are just the important schemes provided by various states. Do share with us your views on new schemes introduced by the respective states and the board for the benefit of the registered beneficiaries.

Disclaimer: This blog is meant for informational purposes and discussion only. It contains only general information about legal matters. The information provided is not legal advice and should not be acted upon without seeking proper legal advice from a practicing attorney.
Simpliance makes no representations or warranties in relation to the information on this article.

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5 thoughts on “Benefits under Labour Welfare Fund (LWF)”

    1. Hi vanitha

      The Labour Welfare Board of Maharashtra has not specifically introduced a scheme regarding accidental death/natural death/funeral expenses. However, employees may approach the board for any financial assistance as per the contribution made by them. This maybe reimbursed.

    1. Hi vijay,

      Gujrat provides a Labour Accident Benefit Scheme; under the above scheme, workers who become disabled during their duty period due to an accident or any other reason at working premises of the establishment are to be provided with financial assistance.

      In case of 40% to 70% disability, INR 25,000 to be paid and in case of more than 70% disability, INR 50,000 shall be paid to the employee. Apart from this, the organization must pay INR 12,500 in case of 40% to 70% disability and INR 25,000 for more than 70% disability.

  1. Hello Simpliance Administrator, There are more benefits under TN Labour welfare board which are not mentioned in your site. Please include the following benefits available. The complete details of the schemes are available in the website https://www.lwb.tn.gov.in.

    1. Marriage Assistance
    A sum of Rs.10,000/- for both male and female is given as Marriage Assistance to employees or their Son/Daughter who legally attain the age of marriage.

    Eligibility
    Should have contributed to Labour Welfare Fund.
    Employee’s monthly salary not exceeding Rs.25,000/- (Basic pay + DA).

    2.Educational Scholarship
    Scholarship is given to the children of the workers for pursuing their education at the rates of INR.4000, INR.5000, INR.8000 and INR.12000 depending upon the courses:
    Eligibility
    Should have contributed to Labour Welfare Fund.
    Employees monthly salary not exceeding Rs.25,000/-(Basic pay + DA).
    Should have completed 16 years of age, Employee’s wife and unmarried daughter & sister who are dependents of Employee’s.

    3.Reimbursement of Purchase of Spectacles
    Reimbursement of cost of spectacles up to Rs.1,000 is given to the workers on production of Medical Certificate and Cash Bill.

    Eligibility
    Should have contributed to Labour Welfare Fund.
    Employee’s monthly salary not exceeding Rs.25,000/- (Basic pay + DA).
    Spectacles will be given only to the Employee’s

    4.Educational incentives
    Employees children who secure first ten ranks in 10th and 12th Std. Govt. Public Examination in each District

    For 10th Standard Rs.2,000/-
    For 12th Standard Rs.3,000/-
    Eligibility
    Should have contributed to Labour Welfare Fund.
    There is no Salary ceiling for this scheme.
    Scholarship is given to the children of the Employee’s.

    5.Book Allowance
    Book Allowance is sanctioned to the children of the workers for pursuing their studies from Higher Secondary to Post-Graduate Degree Courses as detailed below.

    1 Higher Secondary Rs.1,000
    2 Diploma Rs.1,500
    3 Bachelor Degree Rs.2,000
    4 Post-Graduate Degree Rs.3,000
    Eligibility
    Should have contributed to Labour Welfare Fund.
    Employee’s monthly salary not exceeding Rs.25,000/-(Basic pay + DA).
    Scholarship is given to the children of the Employee’s.

    6. Computer training Scholarship
    Reimbursement of Rs.1000 to five employees / Dependants in each Revenue District for basic computer training through the approved institutions.

    Eligibility
    Should have contributed to Labour Welfare Fund.
    Employee’s monthly salary not exceeding Rs.25,000/- (Basic pay + DA).
    Basic Computer Training is given to the children of the Employee’s.

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