Most cos breach law in making contribution to Labour Welfare Fund

Despite making profit, most of the companies--both local and foreign ones--operating in Bangladesh have been ignoring their required contribution to the Labour Welfare Fund (LWF), breaching the existing law, sources said.
Until date, only 400-450 out of 7218 companies with the Registrar of Joint Stock Companies & Firms (RJSC) deposited their contribution to the Fund.
They said around 95 per cent registered firms/companies do not provide their contribution to the fund operating under the Bangladesh Labour Welfare Foundation.
Only a good number of multinational companies and firms along with some of the large local ones are regularly donating to the fund, they said.
As per section 232 under the Bangladesh Labour Act 2006, companies have to contribute 0.5 per cent of their net profit to the welfare of their workers.
The companies, having Tk 10 million paid up capital or having Tk 20-million fixed assists, require to contribute to the funds for the purpose of their workers' well-being.
According to official sources, most of the big companies in sector like shipping, construction, and power grid do not deposit 0.5 per cent of the net profit to the fund.
The labor and welfare ministry is supposed to request the authorities concerned, keeping a mandatory provision at annual income tax return for contributing to the fund.
The LWF was established under the Bangladesh Labour Act, 2006, to provide social security and supports to workers, including assistance for injuries, deaths, and treatment of complex diseases.
In the last fiscal 2024-25, more than 16000 got benefit from the LWF, according to the ministry
When contacted, Secretary of Labour and Employment Ministry A H M Shafiquzzaman said collections of such contributions for LWF have been increasing now.
The collection of the contribution to the fund was over Tk 1.5 billion higher in the just concluded fiscal than that of 2023-24 fiscal, he said.
So far, more than Tk 12 billion has been collected under the Fund, said the secretary.
He said, "We want to make the Fund more labour-friendly and effective. We want to introduce different schemes including launching of insurance facility for workers."

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