Kerala Labour Welfare Fund Table of Contents
One initiative is the Kerala Labour Welfare Fund, one of Kerala’s active regulations. Its single mission is to fulfill the state’s socio-economic needs of diverse worker groups by creating a safety net. Kerala Labour Welfare Fund wants to secure a dignified life for millions.
Understanding these funds’ intricacies and having an employee welfare policy is crucial for HR personnel. Delving deeper, we will explore the specific programs offered by each board, their eligibility criteria, and their impact on shaping a more secure and prosperous future for Kerala’s workforce.
Kerala Labour Welfare Fund Act
Kerala Labour Welfare Fund aims to support workers by collecting contributions from employees and employers of all the covered organizations. The Kerala Labour Welfare Fund Act governs it. Employers deduct the pre-specified contribution from employees’ salaries and simultaneously add their own contribution to the fund, creating a mutual responsibility. Employees’ contribution to the fund fosters a sense of ownership and responsibility for their future security.
The boards allocate these contributions to improve the worker’s conditions. The funds are employed to promote fairness and social justice. The benefits include health and education programs, recreational and housing facilities, and better lives for the workers. This inspiring mission showcases the Board’s crucial role in Kerala’s labor welfare.
Kerala Labour Welfare Fund Rules
Under the Labour Welfare Fund Act, an employer in Kerala must pay a certain percentage of the employee’s wages. Contributions are payable on the 15th of July and January and can be paid in many ways. Correct records regarding the employee details and contributions to the Welfare Fund need to be maintained. Failure to adhere to the rules of this Act, late payments, and incorrect records will attract penalties or fines. Exemption from contributions, subject to certain conditions, may be granted to certain establishments.
Kerala Labour Welfare Fund Applicability
The Act applies to various types of organizations in Kerala, with some exceptions for employee categories. Here’s a breakdown:
Covered Establishments
Shops & Commercial Establishments (2+ Employees)
The Kerala Shops and Commercial Establishment Act of 1960 covers any shop or commercial establishment employing two or more people.
Plantations (10+ Employees)
Businesses that employ ten or more workers and grow rubber, tea, cardamom, coffee, oil palm, or cocoa.
Other Establishments (1+ Employees)
Factories under the Factories Act, 1948 (any number of employees)
Motor transport undertakings (any number of employees)
Societies registered under specific Societies Registration Acts (employing more than twenty persons)
Excluded Employees
- Managerial Staff
- Apprentices
- Part-Time Workers
Kerala Labour Welfare Fund Contribution
For Shops and Commercial Establishments under the Shops and Establishment Act
- Employee Contribution: ₹50
- Employer Contribution: ₹50
- Total Contribution: ₹100 per month
For All Other Establishments
- Employee Contribution: ₹45
- Employer Contribution: ₹45
- Total Contribution: ₹90 half-yearly
Schedule
The contribution schedule for the Kerala Labour Welfare Fund depends on the type of establishment.
Shops and Commercial Establishments
These establishments (covered by the Shops and Establishment Act with two or more employees) contribute monthly. Both employers and employees contribute by the 30th of each month, and the returns are filed with the Board by the 5th of the following month.
Other Covered Establishments
Factories, plantations, and other establishments under the Act contribute half-yearly. Employers and employees make their contributions on June 30th and December 31st of each year. The corresponding returns are filed with the Board by July 15th and January 15th.
Key Points
- Contribution frequency varies based on the establishment type.
- Employers are responsible for collecting employee contributions and submitting them on their own.
- Deadlines for contributions and filing returns differ between monthly and half-yearly schedules.
Kerala Labour Welfare Fund Benefits
The Board uses the money in the Fund for the following activities
- Education and community centers, including reading rooms and libraries
- Vocational training
- Inpatient Rehabilitation Facilities for tuberculosis patients
- Community necessities
- Holiday homes in health resorts
- Part-time employment for homemakers of registered employees
- Higher education
- Preschools
- Games and sports
- Entertainment and other forms of recreation
- Nutritious food for children of employees
- Employment opportunities for disabled employees
- Cost of administering this Act, including the allowances and salaries of the staff
The Kerala government believes these objectives will enhance laborers’ standard of living and overall social conditions.
Kerala Labour Welfare Fund Schemes
The Kerala Labour Welfare Fund Board administers various welfare schemes designed to benefit workers who have contributed to the Fund. Below is an overview of these schemes:
High School Education Grant
Children of workers studying in grades 8 to 10 can receive financial assistance of ₹600 each to support their high school education.
Cash Award (SSLC, CBSE, ICSE, ISE)
The Board grants 25 cash awards per district to students achieving high marks. Students who score an ‘A+’ in all subjects are awarded ₹1,000 each, while those who do not obtain an ‘A+’ in all subjects receive ₹600 each. Additionally, two awards are given to the top-scoring boy and girl from the SC/ST category.
Higher Education Grant
Under this scheme, students studying from plus one to Postgraduate will be given Rs.800 to Rs.3600, depending on their course. This must be applied in the first year of the course’s beginning. Once the grant is received in the first year, it will automatically be renewed annually until the course is completed.
I.T.I Training Programme
Children of these workers can gain admission to industrial training courses in 13 trades across 12 government ITIs in Kerala based on merit. Each selected student receives a monthly stipend of ₹300, and 20% of seats are reserved for SC/ST students.
Computer Training Programme
Computer training is provided for children of registered workers through the LBS Centre for Science and Technology in Thiruvananthapuram, which offers DCA courses to 50 students, and DITS in Kannur, which provides a one-and-a-half-year PGDCA course to 50 students. Based on their academic performance, additional PGDCA courses are available at Kozhikode and Ernakulam Centres for 50 students.
Medical/Entrance Coaching Benefit
Financial assistance of ₹5,000 each is given to two economically disadvantaged students with high marks in plus one and plus two in each district for medical/entrance coaching.
Library Grant
Libraries run by trade unions or establishments for workers’ benefit receive ₹10,000 to purchase books.
Tour Subsidy
Tour subsidies are provided so fund subscribers and family members can visit Thekkady. The subsidy is calculated at ₹0.30 per km for beneficiaries over 12 years and ₹0.15 per km for children aged 6 to 12.
Marriage Benefit
Financial assistance of ₹7,500 is provided for the marriage of female workers and the daughters of workers with a monthly income not exceeding ₹20,000. This benefit is limited to two daughters per subscriber.
Maternity Benefit
Female workers not covered by the Employees’ Compensation Act (ESI) or other schemes receive a maternity benefit of ₹15,000 (with the Board contributing ₹2,000 and the government contributing ₹13,000).
Financial Assistance to Differently-Abled Children
Unmarried differently-abled children of subscribers receive ₹250 per month upon the worker’s retirement.
Assistance for Medical Treatment
Workers are eligible for up to ₹15,000 in financial assistance for critical diseases. These diseases include leprosy, tuberculosis, cancer, paralysis, renal disease, heart valve surgery, mental illness, and others. This assistance can be used in addition to ESI benefits. The application should be submitted within 6 months of discharge from treatment.
Financial Aid to Purchase Artificial Devices
Financial assistance of up to ₹7,500 is provided to purchase artificial limbs for subscribers who suffer accidental disabilities at work, including hearing, visual, and speech impairments.
Post-Death Benefit
A financial assistance of ₹5,000 is provided to the dependents of workers who die while at work.
Assistance for Death by Accident
Dependents of employees who die due to work-related accidents but are not covered under the ESI receive ₹25,000.
Assistance for Cremation
An amount of ₹2,000 is provided to the dependents of employees who die at work to cover death-related expenses.
To claim any of these benefits, visit the government website’s online portal.
Kerala Labour Welfare Fund Claim Process Step-by-Step
To access the benefits provided by the Kerala Labour Welfare Fund, eligible workers must follow a formal application process:
Eligibility Verification
The worker should primarily check his or her eligibility according to the years he or she worked in the concerned establishment.
Registration
To claim benefits, the worker has to register with the Kerala Labour Department. Registration will help make your application easier to process and count as a worker in an official system.
Application Submission
The workers should submit a formal application by writing to the concerned authorities, specifying clearly their demand for assistance. Supporting documents, such as employment proof and salary slips, are supposed to be attached.
Verification of Documents
The authorities will examine the workers’ provided documents and determine whether they are eligible for the benefits claimed.
Approval and Disbursement
Depending on the benefit, the finalized amount is paid directly to the worker or through the employer.
Note: Let us acknowledge that methods can vary and evolve depending on the kind of benefits. Always visit the government’s official website for the most up-to-date information.
Conclusion
The Kerala Labour Welfare Fund shows the state government’s concern for its workers’ welfare. Fueled by employers and employees, the funds protect the workers from underprivileged sections of society. The fund’s effectiveness lies in the state’s comprehensive approach. Kerala’s model inspires, as India observes. This initiative is hoped to achieve its objectives and serve as a model for future welfare programs across India.
FAQ
1. Are the Kerala Labour Welfare Fund Mandatory for All Companies in Kerala?
Yes. The funds are mandatory for most companies registered in Kerala, including factories, shops, establishments, and plantations. However, the applicability may vary depending on your industry.
2. What Are the Different Kerala LWF Schemes?
Each Kerala LWF scheme caters to a specific worker group. Popular schemes include the Building Workers’ Welfare Fund, the Shops and Establishment Welfare Fund, and the Plantation Labour Welfare Fund.
3. How Much Do I Need to Contribute to Kerala LWF?
The rates are decided by the scheme and employee wages. To find the exact rate, visit the Kerala LWF website or contact the department directly.
4. How Do I Register for Kerala LWF and Make Contributions?
Submit your documents to the Kerala LWF department. You can then make contributions online or via designated challans.
5. Are There Any Penalties for Non-compliance With the Labour Welfare Fund?
Yes. Not registering or failing to contribute timely to Labour Welfare Fund can lead to significant penalties. These may include fines and even business license suspension.
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