MLWF – Maharashtra Labour Welfare Fund Act (1953)
The Maharashtra Labour Welfare Fund (MLWF) Act of 1953 is a key piece of legislation designed to promote and finance welfare activities for employees in the state of Maharashtra. The Act establishes the Maharashtra Labour Welfare Board, which manages and utilizes the fund for various welfare schemes and benefits.
Applicability and Eligibility
Who is covered? The Act applies to all factories and establishments in Maharashtra that employ five or more persons. This includes shops, commercial establishments, factories, and other workplaces.
Who is an ’employee’? The definition of ’employee’ includes any person employed for hire or reward to do any work—unskilled, skilled, manual, supervisory, clerical, or technical.
Exemptions: The Act generally excludes individuals in managerial or supervisory positions and those who are apprentices under the Apprentices Act, 1961.
Contribution
The MLWF is funded by contributions from employees, employers, and the state government. The contributions are collected on a half-yearly basis.
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Contribution Period: The contributions are due for the periods ending on June 30th and December 31st of every year.
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Recent Rates: As per the Maharashtra Labour Welfare Fund (Amendment) Act, 2024, the half-yearly contribution rates have been revised.
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Employee’s Contribution: ₹25
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Employer’s Contribution: ₹75 (three times the employee’s contribution)
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The employer is responsible for deducting the employee’s contribution from their wages and paying it, along with their own share, to the Maharashtra Labour Welfare Board.
Due Dates for Payment and Return Filing
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For the June period: Payment and return filing must be completed by July 15th.
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For the December period: Payment and return filing must be completed by January 15th.
Welfare Activities and Benefits
The funds collected are used by the Maharashtra Labour Welfare Board to provide a variety of welfare and recreational services, including:
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Educational Facilities: Scholarships for children of workers, libraries, and reading rooms.
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Health and Medical Aid: Financial assistance for major diseases, and support for workers with disabilities.
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Recreational and Cultural Activities: Organizing sports events, cultural programs, and providing facilities for indoor and outdoor games.
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Training and Skill Development: Providing vocational training, such as sewing and handicrafts, to workers and their families to enhance their employability.
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Financial Assistance: Providing financial help to workers in case of accidents or severe financial distress.
Non-Compliance and Penalties
Non-compliance with the Act, such as failure to pay contributions, can result in penalties. Recent amendments have increased the fines for non-compliance. The penalties can be substantial and include a fine for the first and subsequent offenses. The Act also provides a provision for the compounding of offenses in certain cases.