Country: India
State: Karnataka
Compliance category: Labour Welfare Fund (LWF) Contribution
Regulatory Information:
Regulation: Karnataka Labour Welfare Fund (Amendment) Act, 2024
Notification/Circular No: DPAL 60 Shasana 2024
Notification date: January 10, 2025
Source: https://erajyapatra.karnataka.gov.in/WriteReadData/2025/8085.pdf
Updates in Compliance:
Summary:
Vide The Karnataka Labour Welfare fund (Amendment) Act, 2024 gazetted on January 10, 2025, the Government of Karnataka has increased the employee and employer’s contribution rate for the Labour Welfare Fund (LWF) in Private Sector.
Effective Date: January 24, 2025
Revised LWF contributions:
| Contributor | Old Rate (in INR) | New Rate (in INR) |
| Employee Share | 20 | 50 |
| Employer Share | 40 | 100 |
| Total Contribution | 60 | 150 |
Our Analysis:
The increase in contributions reflects an attempt by the Board to enhance the resources available. This may be necessary to enhance the fund corpus which can further support the to implement various welfare schemes for the employees in the state.
The increase may also align with inflation and rising costs associated with welfare services and other labour-related benefits. These contributions help sustain and improve the living standards of the workforce.
