Odisha Labour Welfare Fund

1. Labour Welfare Fund
2. Odisha Labour Welfare Fund

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The Odisha Labour Welfare Fund (LWF) is a state government initiative established under the Odisha Labour Welfare Fund Act, 2005, to support activities that enhance the welfare and quality of life of workers across various sectors.

The Odisha Labour Welfare Board manages this fund. It is utilized to provide a range of benefits, including medical care, educational assistance, transport and housing facilities, and vocational training for workers and their families. The LWF covers nearly all businesses and employees in the state, showing the government’s commitment to workers’ welfare.

What is Odisha Labour Welfare Fund?

The Odisha Labour Welfare Fund is an initiative by the State Government. It aims to improve labourers’ working conditions to enhance their overall welfare and quality of life. It includes various welfare measures designed to provide financial, medical, educational, and recreational assistance to workers and their families.

Odisha LWF is financed by contributions from employers, employees, and the government. It ensures access to essential services for those who need them most, which has a substantial impact on the fund. This delivers immediate and long-term relief, enhancing the socio-economic status of the Odisha labour force.

Odisha Labour Welfare Fund Act

The Odisha Labour Welfare Fund Act, 2005, is legislation enacted to constitute a fund for financing activities that promote the welfare of labourers in the state of Odisha. The act establishes the Odisha Labour Welfare Board, which manages the fund and supervises the welfare activities.

It applies to establishments with 20 or more employees, covering workers engaged in various types of work. This includes manual, skilled, clerical, and technical roles, but excludes mainly managerial roles, apprentices, and part-time workers.

The act took effect on December 16, 2005, and is supported by the Odisha Labour Welfare Fund Rules, 2015, which detail the procedural aspects of payment, registration, and the operation of the Board.

Odisha Labour Welfare Fund Rules

The Odisha Labour Welfare Fund Rules, 2015, operate under the Odisha Labour Welfare Fund Act, 2005, which aims to promote the welfare of labourers in Odisha.

• The rules apply to establishments employing 20 or more persons, including factories, motor transport undertakings, shops, commercial establishments, societies, charitable trusts, and other businesses.
• Employees covered include those employed for hire or reward for any skilled, unskilled, manual, supervisory, clerical, or technical work, except those in managerial roles, apprentices, and part-time workers.
• Every employer must submit a notice of opening (Form A) to the Welfare Commissioner within 30 days of starting the establishment and notify any changes (Form B) within 30 days.
• Employers are responsible for deducting the employee’s contribution and remitting both the employee’s and the employer’s contributions to the Welfare Commissioner or authorized officers.
• The fund is used to finance welfare activities to improve the living and working conditions of covered employees.
• The Odisha Labour Welfare Board oversees the fund, with the Labour Commissioner serving as the Welfare Commissioner.
• The rules mandate maintaining registers, holding board meetings, and proper budgeting for the fund.
• Penalties and fines collected from employees must be paid within fifteen days after the end of each quarter.

Odisha Labour Welfare Fund Applicability

Odisha LWF applies to almost every establishment and employee in the state. Its applicability has been defined to extend its benefits to as many workers as possible.

Establishments

The Odisha LWF extends to every factory, workshop, plantation, motor transport undertaking, and other commercial establishments. Applicability is determined by specific thresholds concerning the number of employees and the nature of the business.

Employees

The fund covers all employees working in the applicable establishments, including permanent, temporary, and contractual workers. However, there may be specific exclusions based on the wage ceiling or the nature of employment as defined by the rules.

Government and Private Sectors

Government employees and private-sector employees who serve in applicable establishments are also entitled to the fund. Its inclusiveness ensures a wide range of workers are covered under the fund’s welfare measures.

Geographical Coverage

The fund is applicable throughout the state of Odisha. This will ensure that workers in urban and rural areas alike can benefit from the welfare initiatives.

Odisha Labour Welfare Fund Contributions

Under the Odisha Labour Welfare Fund Act, contributions are split between employees and employers, with employers paying twice the amount employees pay.

Employers must deduct the contribution amount from eligible employees’ wages in June and December and remit the combined contributions to the Labour Welfare Board before the respective deadlines. For guidance, explore Payroll Compliance Services.

Odisha Labour Welfare Fund Schemes and Benefits

The Odisha Labour Welfare Board promises to assist registered construction workers and their families through appropriate welfare schemes. It looks after the economic security, health, and education worries of the families and workers. Some of the advantages proposed under such programs are:

Accident Relief Scheme

All registered construction workers who meet with an accident leading to death, permanent disablement, or temporary disablement.

• Benefits: Provides lump-sum compensation to registered construction workers or their dependents in case of death, permanent disability, or temporary disability due to an accident. Financial assistance is given during the period the worker is unable to work due to disability.
• Claim Process: The worker or dependent must complete a claim form and submit it, along with the necessary documents, to the District Labour Officer.

Maternity Benefit Scheme

Registered female construction workers who have worked for a minimum of 180 days in contribution to the Odisha LWF during the past 12 months.

• Benefits: Odisha Labour Welfare Fund (LWF) provides financial assistance of ₹10,000 per child to female beneficiaries, up to two children, who have been registered with the LWF for at least 1 year. This amount is in addition to other benefits offered by the Board.
• Claim Process: The worker must fill out a claim form, supported by a doctor’s certificate stating that the woman is pregnant and due to deliver, and submit it to the District Labour Officer.

Education Scholarship Scheme

Children of registered construction workers studying from Class 1 to Post Graduation.

• Benefits: Scholarships awarded to students are based on their academic performance and family income.
• Claiming Process: The worker must complete the scholarship application form, along with the child’s mark sheets, income certificate, and any other required documents.

Medical Scheme

Registered construction workers and their family members are eligible to receive benefits under this scheme.

• Benefits: The scheme provides participants with expenditures for medical checkups during hospitalization and for other medical surgeries of the specified nature.
• Claiming Process: Workers must furnish the district labour officer with hospital bills, medical reports, and other supporting documents.

Housing Scheme

The registered construction worker with a maximum income limit criterion who does not own a pucca house

• Benefits: Financial aid is provided to the construction worker who constructs or procures the pucca house.
• Claiming Process: Willing workers may submit an application form, proof of income, and evidence of land ownership, if available, to the District Labour Officer.

What is the Registration Process for Employers and Employees in the Odisha LWF?

To register employers and employees in the Odisha Labour Welfare Fund, visit the web portal. There is also a specialized portal for the Odisha Building & Other Construction Workers’ Welfare Board.

For Employers (Establishment)

• Visit Portal: Go to the PAReSHRAM website: pareshram-labour.odisha.gov.in
• Create/Log in: Create an account for your establishment by entering required details, such as the employer’s name, contact details, email address, mobile number, etc.
• Submit Notice of Opening (Form a): Select the form “Notice of Opening” (often referred to as Form A under the Odisha Labour Welfare Fund Act, 2005).
• Fill in: Establishment name, address, category (shop/establishment/commercial/industrial), number of employees, date of commencement, etc.
• Upload necessary documents (as specified) and submit.
• Receive Registration Code: Upon successful submission, the system or an authorized officer will verify it. After verification, a registration code will be allotted to your establishment under the Act.
• Maintain Compliance & Submit Changes: Whenever there is any change in the information previously submitted, you must submit Form B (Notice of Change) within the stipulated period.
• If the establishment closes, you must submit the appropriate closure notice (Form C).

For Employees (Workers)

• Register Online: Workers register via the beneficiary registration link on the portal (for example, via the OB&OCWW board for construction workers).
• Submit Documents: They will need to fill out an application form, upload a photo, age proof, employment proof, bank account details, etc.
• Get ID Card: After verification, they will receive an ID card or registration certificate.

FAQ

Who is Eligible for LWF in Odisha?

Any employee (permanent, temporary, or contractual) who works in factories, motor transport undertakings, commercial establishments, charitable or other trusts that employ 20 or more employees, and who has completed at least 30 days of service in a previous year, is eligible for LWF benefits in Odisha.

What is the Due Date for Labour Welfare Fund in Odisha?

The due dates for Odisha labour welfare fund payments are 15th July and 15th January every year. Returns must also be filed, along with the contributions, on these respective dates to remain compliant with Odisha Labour Welfare Fund requirements.

Is the LWF Applicable in Odisha?

Yes, the LWF is applicable in Odisha. You can visit their official website/portal to check the eligibility requirements for the fund.

Which Employers Need to Register with the Odisha Labour Welfare Board?

All employers in Odisha who employ 20 or more persons are required to register with the Odisha Labour Welfare Board.

How Much do Employees and Employers Contribute to the Odisha Labour Welfare Fund?

Employees in Odisha contribute ₹20, and employers contribute ₹40, to the Odisha Labour Welfare Fund for each employee, twice a year, for a total of ₹60 per employee every six months.