Following the Tripartite meeting held in 1991, the proposal for setting up an Employees Welfare Fund to cater for the welfare, leisure and recreational needs of the employees was retained. The Fund was provided with a legal framework for its operation under the Finance and Audit (Employees Welfare Fund) Regulation 1991 on 9th August 1991. A few years later, in 1995, it became a body corporate with the enactment of the Employees Welfare Act 1995.

It operates with a seed capital made up of contribution paid by employers in respect of their employees during period 01 July 1991 to 30 June 1994. The total annual contribution represented 2.5% of the salaries of employees.

The Fund is administered and controlled by a Board of ten persons, selected on the basis of a tripartite philosophy, with three representatives of Employees, Employers and Government respectively and a Chairman.