Labour Welfare Funds were created to provide welfare facilities like education, housing, medical care, and social security to workers, especially in the unorganized sector. There are three types of funds: industry-specific funds for sectors like tea or coal; state-level funds; and enterprise-level funds for government organizations. The funds are raised through cesses on industries, fines, donations, and contributions from employees, employers, and the government.

1. Labour Welfare Fund

2. Keeping of a Labour Welfare Fund is an
example of organized labour welfare
activities.

3. The concept of Labour Welfare Fund
has been introduced to provide labour
welfare in the unorganized sector.

4. Labour Welfare Funds have been
constituted for workers under various
enactments. These funds are to be
used for providing welfare facilities to
workers such as education, housing,
medical care, recreation, sanitation,
water supply, insurance, social security
etc.

5. 3 types of Labour Welfare Funds:
• Industry-wise funds (like for tea plantations in
Assam or for coal mines or for sugar industry)
• State-level funds
• Enterprise-level funds (they exist in
undertakings of Central Government such as
railway, post & telegraph etc)

6. Industry-wise Funds
• Beedi Workers Welfare Fund Act, 1976
• Coal Mines Labour Welfare Fund Act, 1942
• Cine Workers’ Welfare Fund Act, 1981
• Bombay Labour Welfare Fund Act, 1953
• Tamil Nadu Labour Welfare Fund Act, 1972
State-level Funds

7. The welfare funds are raised by
government by imposing cess on
manufactured beedis, feature films,
export of mica, export of iron ore etc.
The may also comprise of fines raised
realized from employees, voluntary
donations, government contributions,
employee contributions, employer
contributions etc.