Labour Welfare Fund :
Karnataka
If you have 10 or more employees in your establishment or IT/BT unit, you are required to contribute to the Karnataka Labour Welfare Fund annually as per the Karnataka Labour Welfare Fund Act.
Karnataka does not have the double annual cycle like in the states of Andhra Pradesh and Maharashtra. The total annual contribution for each non-managerial worker is Rs.150.00. Of this, ₹50.00 is deducted from the employee’s salary and ₹100.00 is paid directly by the employer.
Your total liability is calculated based on your workforce strength on December 31st.Missing this deadline triggers an automatic 18% per annum interest penalty, so timely online filing is critical.
Act Information
Act:The Karnataka Labour Welfare Fund Act, 1965
Rule:The Karnataka Labour Welfare Fund Rules, 1968
Applicability:Any commercial establishment and shops employing more than 50 or more employees fall under this act. Its enforcement is overseen by the Labour Commissioner.
Exemption:Part timers or apprentices and Managerial staff.
Authority:Labour Welfare Fund Commissioner
Interest:10% on every late payment
Penalty:13% per annum on every late payment
Labour Welfare Fund Contribution
Category:To all Employees except part timers or apprentices and Managerial staff.
Employee:50
Employer:100
Total:150
Deduction Date:31 December
Return Submission:15 January