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Labour Law India · Just now · 499 views

My employer in Delhi deducts from my salary saying it goes to the labour welfare fund, is this legal?

MO Asked by Mohammed Khan from India

Quick Answer

Yes, it is legal for your employer in Delhi to deduct from your salary for the Labour Welfare Fund, provided it is done in accordance with the relevant laws. The Labour Welfare Fund is governed under the Labour Welfare Fund Act, 1965, which aims to promote the welfare of workers in various sectors.

Detailed Legal Analysis

Yes, it is legal for your employer in Delhi to deduct from your salary for the Labour Welfare Fund, provided it is done in accordance with the relevant laws.

The Labour Welfare Fund is governed under the Labour Welfare Fund Act, 1965, which aims to promote the welfare of workers in various sectors. In Delhi, the relevant legislation is the Delhi Labour Welfare Fund Act, 1972. Here are some key points regarding the deductions:

  • Legal Framework: The Delhi Labour Welfare Fund Act, 1972 mandates the establishment of a welfare fund for the benefit of workers. Under this Act, both employers and employees contribute to the fund.
  • Contribution Rates: Typically, the contribution is a nominal amount. For example, the employer might contribute a specific amount per employee, and the employees may also have a small deduction from their salary. The rates are fixed by the government and can be subject to periodic revision.
  • Purpose of the Fund: The funds collected are utilized for various welfare activities, such as providing financial assistance to workers during emergencies, medical aid, and educational assistance for their children.
  • Notification and Compliance: Employers are required to comply with the provisions of the Act and must ensure that the deductions are communicated clearly to employees. Notifications regarding the rates and uses of the fund should be accessible to all workers.
  • Employee Rights: Employees have the right to request details of the deductions made and the contributions to the Labour Welfare Fund. If an employee feels that the deductions are excessive or not aligned with the law, they can raise a complaint with the Labour Commissioner.

If you believe that the deduction from your salary is not being done in accordance with the law, or if the amount is higher than what is prescribed, you should approach the Labour Department in Delhi for clarification and resolution. Ensuring that your employer is in compliance with the legal requirements is crucial for protecting your rights as a worker.

Legal Provisions Referenced

Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.

Last updated: October 4, 2026 AI-assisted answer

Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.

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