Levy Collection and Distribution

A levy is charged on the wages earned by the worker as per the rates decided by the Board.The levy rate ranges from a minimum of 30% to a maximum of 45%.
As per the Scheme, the employer deposits the total wage amount along with the levy to the Board through a demand draft.
In addition, towards the cost of implementing the Scheme, the employer deposits an extra amount with the Board at the rate of 3% to 5% of the levy, as decided by the Board.
The levy amount received is distributed by the Board, as per prescribed proportions, towards various welfare schemes such as Provident Fund, Gratuity, Bonus, House Rent Allowance, Leave Travel Allowance, Paid Leave, Accident Compensation, etc., and the respective amounts are credited to the workers’ accounts.
Out of the above:
- Bonus is paid to workers before Diwali.
- House Rent Allowance, Leave Travel Allowance, and Paid Leave are paid together in the month of May.
- Provident Fund and Gratuity are paid to the worker after resignation or retirement, as applicable.
In case of an accident to a worker, accident compensation is paid as per the percentage of permanent or temporary disability, in accordance with the Workmen’s Compensation Act and Section 18 of the Mathadi Act.
For example, the levy distribution of the Grocery Market and Shops Board, Mumbai, is as follows: