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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: 31 October 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

Any establishment employing 10 or more people, including shops, commercial establishments, IT and service offices, factories and motor transport undertakings, from January 7, 2026. Contract workers deployed at the establishment count, and the principal employer is liable if the contractor does not pay.

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.

The Karnataka Labour Welfare Fund (Amendment) Act, 2025 (Karnataka Act No. 05 of 2026), in force from January 7, 2026, cut the threshold for shops and commercial establishments from more than 50 employees to 10 or more, which brings most Bengaluru offices into scope for the first time. It also allows payment by net banking, NEFT, RTGS and UPI as well as demand draft. Contribution rates were not changed. Karnataka remains unusual in adding a state government share (₹50/year) to the employer and employee contributions.

MM

Mannu Matta

Updated on: 31 October 2026

Frequently Asked Questions: Karnataka LWF

₹50/year from the employee and ₹100/year from the employer, with the state government contributing a further ₹50/year.
Since January 7, 2026, it applies to any shop or commercial establishment with 10 or more employees. Before that the threshold was more than 50, so many offices that never paid Karnataka LWF owe their first contribution for calendar year 2026, due January 15, 2027.
Yes. Contract workers deployed at the establishment are covered, and the principal employer is responsible if the contractor fails to deduct and remit.

Labour Welfare Fund in Other States

Andhra PradeshChandigarhChhattisgarhDelhi (NCT)GoaGujaratHaryanaKeralaMadhya PradeshMaharashtraOdishaPunjabTamil NaduTelanganaWest Bengal

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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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