IndiaFilings » Learn » Tamil Nadu Labour Welfare Fund

Tamil Nadu Labour Welfare Fund

Tamil Nadu Labour Welfare Fund

Tamil Nadu Labour Welfare Fund

Tamil Nadu Labour Welfare Board which is regulated under the Government of Tamil Nadu has proposed the Tamil Nadu Labour Welfare Fund for the welfare of employees and their dependents with a grant of Rs.5 lakhs will be provided to meet the financial needs of the workers. In this article, we look at the Tamil Nadu Labour Welfare Fund in detail.

Labour Welfare Fund

The Labour Welfare Fund would be raised under the following circumstances:

  • Any amount raised by the board.
  • All unpaid accumulations due to workers.
  • All fines realised from the workers.
  • Deduction made under the Payment of Wages Act.
  • Contribution from employers, employees and Government.
  • Any voluntary donation.
  • Any fund transferred under the subsection of Tamil Nadu Labour Welfare Fund Act.
  • Any amount borrowed under the section of Tamil Nadu Labour Welfare Fund Act.
  • Any unclaimed amount credited to the Government in accordance with the rules made under the Minimum wages Act and Payment of Wages Act.
  • Any fines imposed and realised from employers by courts for violation of labour laws.

Contribution to the Fund by Employer and Employee

The employee will contribute Rs.10 per year, and the employer in respect of such employee contributes Rs.20 per year to the fund.

Labour Welfare Fund Contribution Rate

S. No Year Employees Contribution Employers Contribution Government Contribution
1. 1973-1981 Rs.1 Rs.2 Nil
2. 1982-1995 Rs.2 Rs.4 Rs.2
3. 1996-1997 Rs.3 Rs.6 Rs.3
4. 1998-2008 Rs.5 Rs.10 Rs.5
5. 2009-2014 Rs.7 Rs.14 Rs.7
6. 2015 onwards Rs.10 Rs.20 Rs.10

To obtain ESI Registration click here

Labour Welfare Schemes

The Tamil Nadu Labour Welfare Board has been implementing various schemes for the benefits of the workers who contribute to the labour welfare fund. The maximum salary limit for availing the below schemes should be Rs.25,000 per month.

Labour Welfare Centers

Under labour welfare centres, various centres are functioning in the State, which consists of Tailoring section, pre-school and Reading room.

Tailoring Centres

Under this tailoring scheme, the spouse and unmarried daughters or sisters of workmen who are the contributors of the labour welfare fund are eligible to undergo training in tailoring centre.

  • Course Details

The trainees are required to pay an amount of Rs.150 per month as stipend. The duration of the course is for one year commencing from January. At the end of the program, the trainees are allowed to take examination carried by the State Government. In each centre, the first rank holders given with a prize of sewing machine for lower as well as a higher grade.


Under this pre-schools, the Children of the workers within the age group of 2 to 5 can be taken care of by the creche. Every day the children are provided nutritious mid-day meals, eggs and 150 ml — milk in the evening. Children are imparted with education in Tamil, Maths and English and also provided with two sets of Teri-cotton Uniforms. Pre-schools will be functioning from June to April of every year.

Also, read about National Creche Scheme

Educational Scholarship

Scholarships are provided to the children of the workers for pursuing their higher education at the rates as mentioned below:

S. No Degree Scholarship Amount
1. Master Degree in Engineering Rs.12,000
2. Master Degree in Medical
3. Master Degree in Law
4. Master Degree in Agriculture
5. Master Degree in Education
6. Master Degree in Physical Education
7. Bachelor Degree in Engineering Rs.8000
8. Bachelor Degree in Medical
9. Bachelor Degree in Law
10. Bachelor Degree in Agriculture
11. Bachelor Degree in Education
12. Bachelor Degree in Physical Education
13. Diploma in Engineering Rs.5000
14. Diploma in Medicine
15. Certificate Course in Physical Education
16. Diploma in Teacher Training education
17. Higher Secondary Rs.4000
18. I.T.I Rs.4000

Educational Incentive

Under the educational incentive, the incentive of Rs.2000 for 10th standard and Rs.3000 for 12th standard is being provided to the children of the workers who secured first 10 places in Government Public Examination in each educational district.

Book Allowance

The book allowance is provided to the children of workers for pursuing their studies at the rates as specified below:

S. No Educational Qualification Book Allowance
1. Higher Secondary Rs.1000
2. Diploma course Rs.1500
3. Bachelor Degree Rs.2000
4. Master Degree Rs.3000

Assistance for Basic Computer Training

Under this scheme, the financial assistance of Rs.1000 will be provided to 5 employees or dependants in each revenue district for undertaking basic computer training.

Marriage Assistance Scheme

Under this marriage scheme, the amount of Rs.10,000 will be provided as marriage assistance to employees or their daughter or son who legally attain the age of marriage.

Spectacles Assistance

Under this spectacles assistance, the reimbursement of Rs.1000 will be provided to the workers on submission of doctor’s prescription.

Typewriting/Shorthand Assistance

Under this Typewriting/Shorthand Assistance, the children of the workmen who have passed the typewriting or shorthand government examinations will be provided with the assistance of Rs.1000 for typewriting lower, Rs.600 for typewriting higher and Rs.1500 for shorthand lower and higher.

Uzhaippavar Ulagam

A monthly magazine is known as “Uzhaippaavar Ulagam” is published by the Tamil Nadu Labour Welfare Board. This magazine carries articles on judgements associated with labour disputes, amendments, details of labour laws, question-answers and letters from readers etc. The cost of an issue is Rs.10, annual subscription Rs.100 and Life subscription is Rs.1000.

Holiday Homes

Holiday homes have been built by the Tamil Nadu Labour Welfare Board at Courtallam, Valparai and Mamallapuram for the workers and their family to enjoy the holidays.

  • A holiday home named “Jawaharlal Illam” is functioning at Mamallapuram forty-four rooms.
  • A holiday home named “Singaravelar Illam” is functioning at Valparai with thirty rooms.
  • A holiday home named “Thiru-vi-ka Illam” is functioning at Courtallam with ninety-three rooms.

Rent for Holiday Homes

Rest House Labour Public
Double Room Dormitory Double Room Dormitory
Mamallapuram Rs.70 Rs.40 Rs.375 Rs.190
Valparai Rs.80 Rs.40 Rs.250 Rs.190


Ordinary days

Season days













Jeeva Illam

A rest house entitled “Jeeva Illam” has been constructed in Chennai for the accommodation of the office bearers of registered trade unions who come to Chennai from various places in Tamil Nadu to conduct cases on behalf of the workers.

Assistance for Accident Death and Funeral Expenses

In case of accidental death, the assistance of Rs.1 lakh will be given to the dependant of the workmen. In addition to the above, the assistance of Rs.5,000 towards the funeral expenses of the worker will be given to the dependant of the workmen.

Hearing Aid, Artificial Limbs and Three Wheelers

Reimbursement of cost of hearing aid up to Rs.1000 will be reimbursed to hearing-impaired workers or their dependents. Similarly, the cost of artificial limbs are also reimbursed, and Three-wheelers are provided free of cost to the handicapped workers.