Employee welfare fund deduction
8 months ago
I work in Pune, Maharashtra and my employer is deducting 400 rs. every month as employee welfare deduction. Is this legal?
A.To give social security to the workers, the government established the Labour Welfare Fund Scheme, which provides aid to unorganised labour. Under this programme, the employer must withdraw an ad hoc amount from the employee's paycheck and send it to the government after adding their (employer's) contribution (typically double the amount deducted from the employee). The Labour Welfare Fund Act of 1953 applies to all businesses with 5 or more employees. Employees, including those hired through contractors, must contribute, with the exception of those in management or supervisory positions earning more than Rs. 3,500/- per month, and the contribution must be submitted with the "Welfare Fund Commissioner" in Form A-1.
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A.Dear Client,
n order to provide social security to such workers, the Government has introduced the Labour Welfare Fund Scheme to ensure assistance to unorganized labours. Under this scheme, the employer has to deduct an ad-hoc amount that varies from State to State, from the salary of the employee and pay the same to the government after adding their(employer) contribution (usually double the amount deducted from the employee). As per Section 7(3) of the Payment of Wages Act, 1936, the total amount of deductions including the deduction of contribution towards LWF cannot exceed: 75 per cent of the wages when the deductions are wholly or partly for payments to cooperative societies and 50 per cent of the wages in every other case. The Labour Welfare Fund Act, 1953 is applicable to all companies that have 5 or more persons employed. All employees, including employees through contractors, except those working in managerial or supervisory positions and drawing wages more than Rs. 3,500/- per month and the contribution needs to be deposited with the "Welfare Fund Commissioner" in Form A-1.
n order to provide social security to such workers, the Government has introduced the Labour Welfare Fund Scheme to ensure assistance to unorganized labours. Under this scheme, the employer has to deduct an ad-hoc amount that varies from State to State, from the salary of the employee and pay the same to the government after adding their(employer) contribution (usually double the amount deducted from the employee). As per Section 7(3) of the Payment of Wages Act, 1936, the total amount of deductions including the deduction of contribution towards LWF cannot exceed: 75 per cent of the wages when the deductions are wholly or partly for payments to cooperative societies and 50 per cent of the wages in every other case. The Labour Welfare Fund Act, 1953 is applicable to all companies that have 5 or more persons employed. All employees, including employees through contractors, except those working in managerial or supervisory positions and drawing wages more than Rs. 3,500/- per month and the contribution needs to be deposited with the "Welfare Fund Commissioner" in Form A-1.
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