In 1985, the Government of Kerala promulgated the Kerala Motor Workers’ Welfare Fund Act to provide for the constitution of a Fund to promote the welfare of private motor transport workers in the State. It came into force on 27.06.1985. The Kerala Motor Transport Workers’ Welfare Fund Scheme framed under the above Act came into force on 11.07.1985 vide G.O. (Rt.) No. 1036/85/LBR dated 29.06.1985. The Act covers all the motor transport undertakings except those covered under the Employees Provident Fund & Miscellaneous Provisions Act.

Even though the act came into force in 1985 only a limited number of workers joined the scheme till 2005. Many of the employers adopted money-evading practices by exploiting loopholes in the welfare fund act. In order to fulfil the very purpose of the act and to avoid the anomaly the government amended the Act in 2005. As per the provisions of the amended Act payment of welfare fund has been made a mandatory provision for the acceptance of motor vehicles tax.. The government made such an amendment in order to bring all the motor workers under the shadow of the welfare fund. As per the provisions of the amended Kerala motor transport workers welfare fund act the government categorized the motor vehicles and fixed the quantum of amount and also fixed the minimum number of workers required for each type of vehicle.

In order to bring all the motor transport undertaking in the State and the workers employed therein under the coverage of the above Act and the Scheme it has been decided to introduce a uniform rate of contribution to the Fund and a regular pattern of remittance of contribution as amended by G.O. (P) No.59/2005/LBR dated 07.06.05.

For the administration, to supervise and carryout activities Government has constituted a Board to be called as ‘Kerala Motor Transport Workers’ Welfare Fund Board’ consisting of five official members, five persons each representing the employers and employees. One among them is appointed by the Government as Chairman.

The Head Office of the Board is at Kollam. The Chief Executive Officer is the Secretary of the Board. 14 District Offices headed by 14 District Executive Officers are also functioning in the State. The welfare act is designed in such a way that any person employed in any of the motor transport undertaking can become a member.

Every employee and self-employed person who desires to be employed as a motor transport worker and is qualified to be employed in a motor transport undertaking shall be entitled and required to be member of the Fund shall submit in person an application for membership before the District Executive Officer/Additional District Executive Officer concerned of the Kerala Motor Transport Workers’ Welfare Fund Board.

Every employer or self-employed person of a motor transport undertaking shall contribute to the Fund in respect of his undertaking an amount of quantum for each type of vehicle, shown in the Table – I, Table – II, Table – III and Table – IV below, every month, as employer’s contribution taking into account the average minimum number of employees fixed for each such vehicle.

The act & scheme was amended on 29.10.2019 vide order No. GO(MS) NO.49/19 and all benefits were enhanced as per the amendment.