The Karnataka Labour Welfare Fund Act, 1965 creates the Karnataka Labour Welfare Board (KLWB), which administers contributions for benefiting workers in Karnataka. The Act is notable for having a wage-band–based contribution structure, making it more progressive than flat-rate states.
Governing Act
Karnataka Labour Welfare Fund Act, 1965
Karnataka LWF Contributions (Per Employee)
| Contributor | Amount | Frequency | Note |
|---|---|---|---|
| Employee | ₹50 | Annually (due by January 15 of the following year) | ₹50 per employee per year. Contribution is for employees whose names appear on the register as of December 31. Revised by Karnataka LWF Amendment Act, 2024 (effective January 10, 2025). |
| Employer | ₹100 | Annually (due by January 15 of the following year) | ₹100 per employee per year (2x employee share). Total annual contribution: ₹150 per employee. |
Applicability Threshold
Establishments employing 10 or more workers (threshold reduced from 50 to 10 by the Karnataka LWF Amendment Act, 2025, effective January 7, 2026). Previously 50+ workers.
Due Dates
- January 15 of the following year (for the preceding calendar year — contribution is ANNUAL, not half-yearly)
Exemption Categories
- Establishments employing fewer than 10 workers (as of January 7, 2026)
- Apprentices under the Apprentices Act, 1961
- Employees of the Central/State Government
Registration Required: Employers in Karnataka must register with the State Labour Welfare Board and remit contributions half-yearly.