Tamil Nadu Labour Welfare Fund: Applicability, Rules, Benefits

Table of Contents

Tamil Nadu Labour Welfare Fund is integral to the government’s efforts to enhance workers’ lives in Tamil Nadu. This fund was introduced to solve problems faced by workers in the state and to help them improve their economic and social conditions. There are 30 million workers in the state. The fund aims to support progress for all of them, no matter their industry.

We will explore the programs the Board offers, their eligibility criteria, and their impact on Tamil Nadu’s workforce.

Tamil Nadu Labour Welfare Fund Act

The Tamil Nadu Labour Welfare Fund, established in 1972, helps workers in the state grow and improve their lives. Workers and employers make contributions per the guidelines. The Welfare Board uses these contributions to provide a variety of social welfare schemes to workers. This includes financial aid for marriages, scholarships for workers’ children, refunds for education expenses, and assistance in cases of accidents and deaths.

Tamil Nadu Labour Welfare Fund Applicability

Here’s a breakdown of all the categories of organizations coming under the fund:

Covered Organizations

Factories under the Factories Act 1948
Plantations under the Plantations Labour Act, 1951
Motor Transport undertakings under the Motor Transport Workers Act, 1961
Catering companies with 5 or more employees (covered by the Tamil Nadu Catering Establishments Act, 1958)
Any organization employing 5 or more people (as defined by the TNLWF Act, 1972)

Who is Exempt?

While the fund applies to these collective businesses, some employee categories are exempt from contributing and receiving benefits:

Employees in managerial roles
Supervisory staff earning more than Rs. 15,000 per month
Apprentices
Part-time workers

Tamil Nadu Labour Welfare Fund Rules

Every employer in Tamil Nadu shall pay the Fund a certain percentage of the employee’s wages. Contributions shall be paid on due dates through various methods. Proper record maintenance regarding employee details and contributions paid is required. Non-compliance, late payment, or incorrect record maintenance attract penalties or fines under the rules. Certain establishments may be exempt from contributions subject to some conditions. Employees who have made periodic contributions to the Fund are entitled to several benefits.

Tamil Nadu Labour Welfare Fund Contribution

Anyone doing business under this act must ensure their and their employee’s contributions to the fund are made on time by December 31st. They must also file the necessary returns by January 31st of the following year. Here is the exact amount of the contribution required.

Employer contribution: Rs.40
Employee contribution: Rs.20
Total contribution: Rs.60

TNLWF Objectives

1. Upliftment of Workers’ Living Standards

Improve the overall well-being of workers in Tamil Nadu by providing financial assistance for various needs.
Offers support during emergencies by providing financial aid in case of accidents or worker deaths.

2. Promoting Social Security and Worker Welfare

Strive to enhance social security for workers and their families by enabling access to financial and educational resources.
Contributes to a more stable and secure environment for them.

Tamil Nadu Labour Welfare Fund Benefits and Offered Schemes

Here are the various benefits that the board provides:

1. Marriage Assistance

Employees or their children who have attained the legal age of marriage are eligible for Rs. 20,000 in marriage assistance.

2. Scholarship Benefits

The board arranges various scholarships so that workers’ children can pursue their further studies.

Post-Graduate Degree (Engineering, Medical, Law, Agriculture, Physical Education): Rs.12,000
Bachelor’s Degree (Engineering, Medical, Law, Agriculture, Physical Education): Rs.8,000
Diploma (Engineering, Medical, Physical Education): Rs.5,000
Higher Secondary Education: Rs.4,000
ITI Courses: Rs.4,000

3. Spectacle Reimbursement

Workers will be reimbursed up to a value of Rs. 1,000 for their spectacles. For this, they will need to submit a prescription from their doctor.

4. Cash Awards for Academic Excellence

The children of employees who score in the top ten in the 10th and 12th-grade public exams will receive Rs. 2,000 and Rs. 3,000, respectively.

5. Computer Training Reimbursement

The fund reimburses Rs.1,000 for basic computer training to five employees or dependents in each revenue district.

6. Death and Funeral Support

Natural Death

Dependents are eligible to receive Rs.50,000, along with Rs.5,000 for funeral expenses.

Accidental Death

Dependents can receive Rs.2 lakh as accidental death assistance and Rs.5,000 for funeral expenses.

7. Book Allowances

To support the education of workers’ children, the following book allowances are provided:

Higher Secondary Students: Rs.1,000
Diploma Students: Rs.1,500
Bachelor’s Degree Students: Rs.2,000
Post-Graduate Degree Students: Rs.3,000

How to Claim Benefits Under the Tamil Nadu Labour Welfare Fund

1: Eligibility Verification

Review your employment status and duration of service to determine your eligibility for this particular benefit.

2: Gather Required Documents

Collect the necessary documents required to support your claim. This may include:
- Employment ID card
- Salary slips
- Proof of identity (Aadhaar card, passport)
- Proof of address
- Medical certificates (if applicable)

3: Complete Application Form

Obtain the application form from the Labour Welfare Fund office or their website.
Fill out the form accurately, providing all required information.

4: Submit Application

Submit the filled application form along with the necessary documents attached to it to the Tamil Nadu Welfare Fund office. You may also submit your application online.

5: Verification and Processing

The board will review your application and scrutinize the documents provided along with it.
If the board realizes the requested claim is justified, it will initiate the confirmation process.

6: Benefit Approval and Disbursement

Once your request is approved, the board will provide you with benefits.
Benefits may be paid through direct bank transfer, cheque, or other specified methods.

Note: The process can be subject to change over time. To know the most recent process, visit the Tamil Nadu Welfare Fund Board https://www.lwb.tn.gov.in/ for information or seek assistance from your employers.

Conclusion

The Tamil Nadu Labour Welfare Fund is a well-designed program with positive results across the state. However, achieving its full potential requires more significant contributions from employers, who must ensure their contributions are made on time. Employers should also help employees who may be eligible for benefits but cannot claim them due to a lack of knowledge or education.

Therefore, business managers, owners, and HR personnel must stay informed about the fund. The fund offers crucial support to workers and their families, which is essential for their progress.

FAQ

1. Is My Organization Covered Under the Tamil Nadu Labour Welfare Fund?

The fund applies to factories, transport undertakings, plantations, catering establishments with 5+ employees, and any establishment with 5+ workers. Check the type and number of employees you have to determine applicability.

2. What Is the Contribution Rate for Employers?

Employers contribute Rs. 40 per employee annually, along with the employee’s Rs. 20 contribution, for a total contribution of Rs. 60 per employee per year.

3. How and When Do Our Organization Contribute to the Fund?

Contributions must be made before a specific date. This date is December 31st, and your related return files must be filed before January 31 of the following year. You may need to pay this money through online mediums. In that case, you will have to visit the official government website. There, you will find the option for online payment.

4. Are There Any Benefits for Employers Who Contribute to the Fund?

Although there may not be a direct benefit for employers, there are undoubtedly many indirect benefits. The entire system—employees, employers, and the government collectively focus on the progress of the state’s workforce and their families. This boosts workers’ morale and contributes to businesses’ future growth and prosperity. It will improve the company’s bottom line.