Gujarat Labour Welfare Fund

1. Labour Welfare Fund
2. Gujarat Labour Welfare Fund

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The Gujarat Labour Welfare Fund is a statutory initiative, constituted under the Gujarat Labour Welfare Fund Act 1953. The fund is used for providing benefits to employees and their dependents in Gujarat. The Gujarat LWF Act provides for processes related to the management, collection, and utilization of funds. It is important to contribute to the Gujarat labour welfare fund in the state from a compliance perspective, as the Gujarat LWF Act mandates specific contribution rates.

In this guide, you will learn all about the Labour Welfare Fund Gujarat. You will also get to know key details related to the Gujarat Labour Welfare Fund Act. Lastly, you will be able to register with the Gujarat LWF board.

What is the Gujarat Labour Welfare Fund?

The Gujarat Labour Welfare Fund is a corpus collected by the state to provide better living conditions for employees and their families. As mentioned, the fund was established by the Gujarat Labour Welfare Fund Act of 1953. The procedures of managing funds are detailed in the Gujarat LWF rules, and the Gujarat LWF board collects and provides funds as and when needed.

The Gujarat government proposed a change to the LWF Act with the Jan Vishvas Amendment Bill 2025. The government plans to decriminalize minor offenses and replace imprisonment with fines to improve the ease of doing business.

The Gujarat Labour Welfare Fund Rules, 1962

These rules came into force in 1962 and govern most of the procedures related to the labour welfare fund in Gujarat.

1. Rule 3: Specifies the mode of payment, fines, and accumulations.
2. Rule 3(B): Mandates that employers remit contributions to the Gujarat LWF board.
3. Rule 5: Details the procedure for the refund of the unpaid accumulation.
4. Rule 8: Outlines the procedure to apply for funds to the welfare commissioner.

Gujarat Labour Welfare Fund Applicability

There are three details that employers need to consider for labour welfare fund applicability in Gujarat –

• Section 1 and Section 2(4) of the Gujarat Labour Welfare Fund specify the applicability and scope of the act.
• The Gujarat LWF act applies to all the establishments as defined under the Bombay Shops and Establishments Act, 1948.
• Importantly, if an establishment employs fewer than 10 employees for a continuous period of three months, then that establishment ceases to be eligible for labour welfare fund in Gujarat.

Gujarat Labour Welfare Fund Contribution

Section 3(2)(bb) of the Gujarat Labour Welfare Fund Act mandates that employees and employers contribute specific amounts to the fund. Section 6B specifies the contribution rates. Here are the Gujarat Labour Welfare Fund contribution rates as of 2025.

Contributions are made biannually, on 30 June and 31 December. Employers file returns by July 15 and January 15.

Guidelines

• This applies to establishments with ten or more employees
• Excludes top managerial positions earning over ₹3,500 per month
• Amendments removed Section 3-AA (1)(a) and Form ‘A’
• Employers must maintain registers for ten years

Section 3-AA mandated employers keep registers for a decade, including the “Wage Ledger Form A”. Exceptions are applied to employers who maintain muster roll-cum wage registers.

Gujarat Labour Welfare Fund Benefits and Schemes

The welfare benefits and schemes offered under the Gujarat Labour Welfare Fund are:

1. Educational assistance: Schemes like the educational awards scheme and training for competitive exam schemes provide grants to the dependents.
2. Housing and lifestyle: The home loan interest subsidy scheme and the go green scheme help in purchasing houses and electric vehicles.
3. Health and accident assistance: Initiatives such as the labour accident benefit scheme, maternity benefit scheme, and complete medical check-up assistance scheme provide health and financial assistance.

How to Register for the Gujarat Labour Welfare Fund?

Here is a step-by-step process for registering with the Gujarat Labour Welfare Fund, as given on the official site of the Gujarat LWF board. –

1. Visit the official site of the Gujarat Labour Welfare Fund Board and click the registration link.
2. On the organization sign-up screen, fill in the required details.
3. For documents, employers will need a PAN card and proof of your organization’s identity.
4. You can upload a factory certificate, a Gumastadhara certificate, or a contract order.
5. Lastly, pass the captcha challenge and click “sign up”

FAQs

What is the Objective of the Gujarat Labour Welfare Fund?

The primary objective of the Gujarat Labour Fund is to provide better living conditions to employees and their families living in Gujarat. The fund is utilized to provide a number of educational, social, and financial schemes for the betterment of employees and their dependents.

Who is Eligible to Benefit from the Gujarat LWF?

Employees working in establishments and factories in Gujarat are eligible for benefits.

When Should the Gujarat LWF be Paid?

The Gujarat labour welfare fund is a half-yearly mandate. The government collects funds on January 15th and July 15th, respectively.

What Benefits do Workers Receive from the Gujarat LWF?

Workers and their families benefit from various schemes such as educational awards, Home Loan Interest Subsidy, accident compensation, and even lifestyle benefits like the Go Green Scheme.

How does the Gujarat Labour Welfare Fund Support Migrant Labourers?

The labour welfare fund of Gujarat provides financial support to migrant labourers through schemes like Shramyogi Pravasan Yojana. The beneficiaries of the scheme can avail themselves of transport costs once every two years.

What are the Penalties for Not Adhering to the GLWF Act?

According to section 6(C) and other sections of the Gujarat Labour Welfare Fund Act, employers must pay simple and compound interest if they fail to submit payment on time. Importantly, the 2025 Jan Vishvas amendment bill replaces imprisonment with penalties.