Chhattisgarh Labour Welfare Fund Table of Contents
The construction boom is among the main drivers of economic growth in Chhattisgarh. This sector heavily relies on the hard work and efforts of construction workers. However, in most cases, the nature of those construction jobs could be really strenuous, and the worker is exposed to adverse circumstances. Keeping this important workforce in mind, the state government formed the Chhattisgarh Labour Welfare Fund (CLWF) to benefit the workforce.
The Chhattisgarh LWF is a statutory fund created under the Chhattisgarh Shram Kalyan Nidhi Adhiniyam 1982 (Act). Its primary objective is to promote the welfare of construction workers within the state by providing various social security benefits and amenities. These include medical care, education facilities for their children, housing options, and skill development programs.
This blog provides details of the employer’s contribution to the Fund and the applicable regulations. HR professionals and employers must collaborate to ensure the effective implementation of these regulations. With the combined efforts of employers and workers, the CLWF is well-positioned for success. This ensures that the construction workforce in Chhattisgarh can enjoy more secure and dignified lives.
What are Labour Welfare Funds?
Labour welfare funds are measures of social security advanced by state governments across India to improve the working environments and general life of employees, focusing on employees in the informal sector. This is money that is held in trust funds to be used in the administration of financial support, scholarships for the children, medical aid, and pensions, among other fringe benefits. The contributions to the funds are made by the employer, employee, and a small component of statutory levy (cess) collected by the respective state government.
Chhattisgarh Labour Welfare Fund Applicability
The Chhattisgarh Labour Welfare Fund applies to all establishments and employers engaged in construction activities within the limits of the State of Chhattisgarh, including both public and private sector undertakings, irrespective of the magnitude of the work or the type of construction involved.
However, employees in supervisory, managerial, or administrative positions receiving a monthly salary of more than ₹10,000 are generally exempt from the ambit of the CLWF. Basically, the Fund has as its target segment some of the most neglected sections of unorganized workers in the construction sector who were so far deprived of any formal measures of social security.
Chhattisgarh Labour Welfare Fund Contributions
Contributions to the Chhattisgarh LWF are made twice each year. Employers should follow those due dates so the contributions are not late and cause problems.
Frequency: Half Yearly
Date of Deduction: 30 June and 31 December
Returns: 15 July and 15 January
Contribution of Employee and Employer
Employee: ₹15
Employer: ₹45
Total: ₹60
Chhattisgarh Labour Welfare Fund Act
The Chhattisgarh Shram Kalyan Nidhi Adhiniyam, 1982, the Chhattisgarh Labour Welfare Fund Act, is the legislation that serves as the legal basis for the CLWF scheme. This Act establishes the framework for the constitution and management of the Fund to ensure its proper use for the benefit of construction workers.
Provisions in the Act
This Act applies to all establishments and employers undertaking construction in the state of Chhattisgarh, whether of a public or private nature. However, it generally does not apply to employees who are paid monthly, hold supervisory, managerial, or administrative positions, and receive more than ₹10,000 per month.
Cess Levy and Calculation
The Act stipulates that the state will impose a fee on the construction costs of any project. The fee is set at 1% of the total project cost. The total cost of construction on which this cess is to be levied excludes the cost of acquiring the land used in the construction process. The employer on the construction project shall pay the cess to the Chhattisgarh Building and Other Construction Workers Welfare Board (BOCWWB).
Employer Registration
The Act mandates that all those employers associated with the construction sector, as designated by the Chhattisgarh Labour Welfare Fund Act, must register with the BOCWWB. The procedure for registration is simple. Usually, a standard application form, supported by necessary documents, such as project details and the number of workers involved, must be filed.
By registering, an employer can access the benefits provided by the scheme for their employees under the CLWF and contribute to their welfare.
Benefits Available Under CLWF
The Chhattisgarh LWF is designed to provide a wide range of benefits to registered construction workers in the state. These benefits will ensure financial security, improve living standards, and empower workers for a better future. Let’s understand the categories of benefits available under CLWF:
Medical Benefits
Hospitalization
Financial assistance is available to registered workers and their dependents to meet hospital expenses due to illness, accidents, or maternity. Generally, a percentage of the hospital bill is paid, subject to limits fixed in the CLWF scheme.
Maternity Benefits
Female construction workers can receive financial assistance during pregnancy and delivery. The benefits may include pre-and postnatal care, maternity leave for a period, and some compensation in the form of wages.
Educational Benefits
Scholarships
The Chhattisgarh LWF scheme provides scholarships to the children of registered workers studying beyond the elementary level. This scholarship helps reduce the burden of education and encourages better educational opportunities for the coming generation.
Social Security Benefits
Old Age Pension
After a certain age and a registration period, registered workers become eligible for a monthly pension. This eligibility also depends on meeting other conditions, such as a minimum number of years of contribution. Such a pension will help provide financial security in the years to come.
Death Benefits
In the case of a worker’s demise, the nominated beneficiary (either a spouse or a member of the registered worker’s family) can claim financial assistance in favor of the Chhattisgarh LWF Act. The benefit will help provide financial support to the deceased worker’s family during this difficult time.
Housing Benefit
Subsidy Schemes
On the other hand, registered workers may benefit from construction subsidy schemes in their own houses under the purview of the Chhattisgarh Labour Welfare Fund. These subsidies help reduce the cost of housing and also encourage workers in the construction industry to buy a house.
Skill Development Benefits
Training Programs
The Chhattisgarh Labour Welfare Fund scheme could either conduct or sponsor training programs related to the skill development of registered workers. These training programs enable workers to acquire new skills or update their existing skills, making them employable and ensuring better earnings in the long run.
Availing Benefits
File your Chhattisgarh Labour Welfare Fund Act benefit claim with BOCWWB or designated authorities. Include all required paperwork to support your application. Submit promptly for timely processing and consideration of your request. The kind of documents to be submitted would vary according to the benefit category.
Roles and Responsibilities of the Stakeholders
The Chhattisgarh LWF scheme is effectively executed through the collaborative efforts of the following stakeholders. The key roles and responsibilities of the stakeholders are as follows:
Chhattisgarh Building and Other Construction Workers Welfare Board
The BOCWWB is the nodal agency regulating the Chhattisgarh LWF.
The board collects cess from all employers, manages the resources, and disburses benefits to registered workers.
Apart from these, another key role of the BOCWWB is to conduct awareness campaigns among workers and employers regarding the CLWF scheme. They can conduct programs and workshops to reach out to them and also provide guidance regarding the registration process and how to claim benefits.
Employers
All employers conducting any type of construction activity in the state are mandated to contribute to the Chhattisgarh LWF by paying the cess levied on the cost of a construction project.
Employers must also register themselves under the BOCWWB and facilitate the registration of their construction workers under the CLWF scheme.
This can be achieved by collecting the registration details from the workers and aiding them in the registration process.
Workers
Construction workers must register with the BOCWWB to receive benefits from the Chhattisgarh Labour Welfare Fund scheme.
They shall effectively participate in the awareness programs and understand the eligible benefits.
Post registration, all workers should claim the different benefits following the prescribed procedure and submit the required documents.
The BOCWWB, employers, and workers will operate the Chhattisgarh LWF scheme by fulfilling their respective roles and working together. This collaboration will contribute to the overall welfare of the construction workforce in Chhattisgarh.
Registration for Implementation and Redressal of Grievance
Both the employee and the employer must register for the CLWF scheme.
Registration of Workers
Generally, worker registration involves filling out a prescribed application form and submitting it to the BOCWWB or a designated center. The form includes:
- Worker’s name
- Address
- Contact number
- Proof of employment in the construction sector
- Aadhaar card
- Photographs.
Employers
Employers shall register with the BOCWWB by filling in an application form detailing their company, construction project, and estimated project cost. They might also be required to provide a registration document to the relevant authorities.
Claiming Benefits
To claim benefits under the CLWF scheme, the worker must apply. They must submit documents to support their claim for the desired benefit (for medical, scholarships, and others). Depending on the benefit claimed, these supporting documents could be medical bills, children’s educational certificates, or death certificates.
In fact, workers can obtain full information about the application process and the documents required for each benefit category from the BOCWWB office or the website.
Conclusion
Chhattisgarh Labour Welfare Fund is among the largest programs aimed at improving the welfare of the state’s construction workers. It offers social security benefits such as medical aid, educational support, retirement coverage, and housing facilities.
The success of the Chhattisgarh LWF will be greatly reliant on the increased involvement of major stakeholders in its implementation, notably employers and employees. This will be crucial in ensuring that their joint activities can afford the best quality of life at work as desired by the beneficiaries at the workstations in Chhattisgarh.
Frequently Asked Questions
Who is Eligible to Benefit Under the CLWF Scheme?
Construction workers, skilled/unskilled, permanent/casual/migrant, registered or unregistered with the BOCWWB, have been extended the benefit, except persons receiving a monthly salary of more than ₹10,000 in a managerial position.
How Do I Register My Company with the CLWF?
The company’s establishment shall be registered with BOCWWB through a standard application form. The form should capture information about the construction project, its estimated cost, and the number of workers. Supporting documentation detailing the project and worker registration information has to be provided.
What Documents Should Employees Prepare to Claim Benefits Under the CLWF?
Employees should be informed that the documents required will depend on the specific benefit being claimed, such as medical bills, educational certificates, or death certificates. They should be directed to the official CLWF website for a detailed list of documents required for each benefit category.
What Should I Do if I Encounter Issues with Registration or Contributions?
If there are any issues with registration or contributions, employers should contact the BOCWWB office directly for resolution. The office can provide guidance and support to address any challenges faced during the process.
Continue with Google