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Labour Welfare Fund in Karnataka

Karnataka levies the Labour Welfare Fund under the Karnataka Labour Welfare Fund Act, 1965. Here's the full contribution breakdown, due dates, registration process, and exemptions.

Updated: 01 August 2026

Karnataka LWF Contribution Rates

ContributorAmount
Employee₹50/year
Employer₹100/year

* Periodicity: annual. Rates are set by the Karnataka Labour Welfare Board and revised periodically. Always verify against the official state notification before filing.

Applicability, Due Dates & Registration

Governing Act

Karnataka Labour Welfare Fund Act, 1965

Who It Applies To

Varies by establishment type: shops/commercial establishments and charitable trusts with more than 50 employees; factories and motor omnibus services regardless of employee count; plantations/workshops with one or more workers.

Due Date

Deduction by December 31 each year; employer returns filed by January 15 of the following year.

Registration

Establishments register online through the Karnataka Labour Welfare Fund Board website, or by contacting the Board office directly for forms and guidance.

Karnataka is unusual in involving a state government top-up (₹50/year) alongside the employer and employee shares, and in setting a much higher applicability threshold (50+ employees) for shops and commercial establishments than for factories.

Frequently Asked Questions: Karnataka LWF

What is the LWF contribution in Karnataka?

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Does LWF apply to all shops in Karnataka?

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Automate Karnataka payroll compliance

Engage HRMS handles LWF, PF, ESI, PT, and TDS automatically based on each employee's work-location state, with no manual rate lookups, no missed filings.

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