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.