The Workers Welfare Fund Ordinance 1971
What is Workers Welfare Fund?
A fund was established by the government of Pakistan through an ordinance in 1971 for providing residential accommodation and other facilities for the workers.
Governing Body: A governing body manages this fund under the constitution. Labor ministry’s secretary heads this eighteen member body. One worker, one employer and one provincial government nominee from each province are a part of this governing body. Members of this body are deemed as public servants.
The fund consists of:
- Government contribution towards the welfare fund.
- Industry, factory or company establishment (owners) having five lakh rupees or more income to contribute two percent of its income to the fund.
- Any income from the investment of this fund or removal of movable and immovable property of the fund.
- Voluntary contributions or donations to the fund (monetary, land or building).
- Loans raised by governing body.
The fund may be used by the governing body for:
- Providing housing to workers or
- Training, re-skilling and apprenticeship of workers or higher education of worker’s children.
- Expenditure on the administration of the welfare fund.
- Repayment of loans raised by governing body.
- Investment in government guarantees, non-government securities and real estate.
Provincial Workers Welfare Board: A provincial setup is allocated funds from the workers welfare fund and known as workers welfare board. It is made with a view to undertake effective management of the welfare fund on provincial level.