The Andhra Pradesh Labour Welfare Fund Act, 1987 has been enacted on the recommendations of labour ministers’ conference held in 1961 and the first National Commission for Labour also considered the need for Labour Welfare Boards in all states.

Applicability : The Act applies to all establishments that include a ‘factory’ defined under section 2(m) of the Factories Act, 1948, a ‘motor transport undertaking’ as defined under the Motor Transport Workers Act, 1961, any other establishment as defined under the A.P. Shops And Establishments Act,a ‘society’ registered under any Act and a ‘charitable trust or other trust’. All employees including contract employees working in these establishments are covered by this Act.

Constitution of Andhra Pradesh Labour Welfare Fund : The Government constituted ‘Andhra Pradesh Labour Welfare Fund’ and the contributions paid by the employees and employers, all unclaimed amounts like wages, gratuity and employees compensationetc, all fines realized from the employees, voluntary donations, grants and advances made by the government, any amount raised by the Board from other resources of the Board shall be remitted to the fund.(sec 3).

Status of Welfare Fund as

          As on 02.06.2014,  an amount in Fixed Deposits Rs.21.77 crore and amount in SB Account is Rs.36.82 lakh.

Government have constituted the A.P. Labour Welfare Boardunder Section 4 of the A.P.Labour Welfare Fund Act, 1987 during the year 1990 for the first time.  The Minister for Labour is the Chairman of the Board and the Board consist of representatives of employers and employees in equal proportion and independent members viz., Secretary to Government, LETE & F, Finance, Industries as ex-officio Members an a woman member to represent women to be nominated by the Government.  The Board has formulated welfare schemes for the contributor workers and the schemes have been implemented by the labour department. All officers of the Labour Department from Assistant Labour Officer to the Commissioner of Labour have been notified as inspectors under the Act (sec 18& rule 22).

 The Asst. Commissioners of Labour receive applications and settle claims under the schemes. The Act covers 25 lakh workers in Factories, Shops and Establishments, Motor Transport Undertakings, Societies and Trusts.The main source of fund is contribution @ Rs.7/- per worker per year, unclaimed wages, other sources of income like  building rent and grants made by the Government.

Main Schemes implemented by A.P. Labour Welfare Board are:

i) Vaidhya Sahaayam(Financial assistance for treatment of Chronic diseases) :  An amount of Rs.20,000/- is being provided to the contributor workers or his dependents for treatment of Chronic diseases like Cancer, Brain tumor or Heart ailments, Paralysis treatment, Hysterectomy,  trauma treatment (serious wounds/injuries caused due to accidents) andAIDS- Treatment.

ii) Pramadamarana Aardhika Sahayam(Financial assistance for accidental death):   An amount of Rs.30,000/- is being granted to the legal heirs of the contributors who died in accident while on duty.

iii) Sahajamaran AardhikaSahayam (Financial assistance for Natural death) :   An amount of Rs.10,000/- is being granted to the legal heir of the deceased worker under Natural death scheme to support the family members for the sudden loss of earning member.

iv) Anthyakriyalaku Aardhika Sahayam(Financial assistance for Funeral Expenses):Financial assistance for an amount of Rs.5,000/-  to the legal heir of the deceased worker to support the family members for the sudden loss of earning member.   

v) VivaahaKaanuka (Marriage Gift Scheme):  Fixed deposit Bond worth Rs. 10000/- for a period of three years will be given to the daughter of the worker- contributor ,  at the time of her marriage. Similarly, women worker contributors will be given with the above Gift for their self-marriage.

vi) Angavaikalyaniki Aardhika Sahayam(Financial Assistance for Loss of Limbs) :An amount of Rs.20,000/- OR actual medical expenses, whichever is less, is being paid to the worker contributor’s,  who lose their limbs in accidents.(Disability 25% to 40% = Rs.10000/-,41% to 49% = Rs.15000/-, 50% above Rs.20000/-)

vii) PrasuthiSahayam(Maternity Benefit Scheme) : A scheme to provide financial assistance towards maternity benefit to an extent of Rs.5,000/- to the women workers working in the establishments not covered under E.S.I. or any such assistance provided by the managements.

viii)  AadarshaKutumbaProthsaahakam(Family Planning Incentive)Financial assistance of Rs.2,000/- will be  paid to the worker contributor   for undergoing Family planning operation for those who are not working the public Sector Establishments and whose monthly salary/wage does not exceed Rs.10,000/- 

ix) VidhyaProthsaahakam:(Merit Scholarships to the workers and their children): Every year scholarships are being provided to the workers and their children @ Rs.1000/-for prosecuting 10th class, Rs,1500/- Polythenic, Rs. 2,000/- for Engineering, Medicine, Law, B.S.C. (Ag), B.S.C.(Vet), B.C.A., B.B.A., B. Pharmacy, M.B.A. & M.C.A.,BSC(Horti),BSC(Nursing), BAMS, BDS, DHMS, DMLT, MLT Courses.                                                                                                                 

x) PratyekaVidhyaProthsaahakam(Scholarships to the Physically Handicapped Children) :Scholarships are also being provided to the Physically Handicapped children of the contributor workers @ Rs.4,000/- irrespective of the class and course.

xi) Sports, Games & Cultural Competitions:Every year Sports, Games & Cultural Competitions are being conducted at Zonal and State Level among the workers of various Factories & Establishments and the winners are being awarded with Prizes.

An amount of Rs. 6.86 crore was disbursed to 26,353 workers under the schemes during the last 5 years in Andhra Pradesh.  A separate operational unit for Telangana State has been functioning since 02.06.2014 and a formal distribution of assets and posts is yet to take place.