Navigating Labor Welfare Fund Payments in Bangalore: Do Startups Need to Contribute?

We are an IT services organization started in 2015 in Bangalore, Karnataka. Do we need to pay the LWF fund? And does this apply for startups?

I understand that we need to pay Rs. 20/- (employee) and Rs. 40/- (employer) as per the new notification. However, I am not sure what the process is. Could you please guide me on how we can pay (online) and how to submit the returns?

Hi Rakesh,

I am attaching Form-D along with the bank details of the Labour Welfare Board. Please pay the amount immediately to avoid a penalty as the last date for payment was 15th Jan '18.

Hi Rreddygk,

Thank you for the Form-D document. Could you please let me know if we need to visit the office and submit the Form-D, or if NEFT fund transfer would be sufficient? (Sorry if this query sounds silly, as I am new to all these processes, hence asking...) Also, is there any return that we need to file?

Once again, thanks in advance!

Dear Mr. Rakesh,

The very purpose of attaching Form-D is to submit the same duly completed and signed, together with NEFT details. You are new to this job, but nothing prevents you from going through the act at least once. Please make reading a daily habit to update your knowledge.

Hi Rreddygk,

As per the definition of an Employee under KLWF, do Supervisors/Managers/Officers come under it? A line in reply is appreciated.

Regards,

Officers and managers do not come under the definition of an employee as per the KLWF.

Labour Welfare Fund (LWF) - Karnataka

Applicability of Act
The provisions of the Act shall be restricted to establishments employing 50 or more persons.

Categories of Employee to be covered
All employees without any salary/wage limit.

Contribution Period
Once in a year (December).

Periodicity
Yearly return.

Last Day of Submission
15th January.

Employee Contribution
Rs. 20/-

Employer Contribution
Rs. 40/-

Total Contribution
Rs. 60/-

Cheque or DD in Favour of
Welfare Commissioner, Bangalore.

Address of the LWF Commissioner
Labour Welfare Commissioner, Karnataka Labour Welfare Board, Karmika Kalyana Bhavan, No.48, 2nd Floor, Mathikere Main Road, (Behind RTO Office), Bengaluru – 560022.

Remarks
Where an establishment has different branches or departments, all such branches or departments, whether situated in the same premises or different premises, shall be treated as parts of the same establishment.

Form to be filled
Form D.

Friends, KLWF is applicable to establishments employing 50 or more employees. During the December 2017 contribution revision, all employees, including supervisors, officers, and managers, were brought under the purview of KLWF.

Regards,
Suresh

Dear Mr. Suresh,

Please peruse the attachments - Bill to amend the Act & Gazette Notification for your perusal.

With regard to your statement:
1. All employees are brought under the purview of the Act.
2. All employees without any salary or wages.

Please let us know the basis.

The Karnataka Labour Welfare Fund Act is applicable to all establishments where one or more employees are working. The interpretation regarding 50 or more persons is incorrect, in my opinion.

Dear Mr. Madhu,

The Act is applicable to all factories. Only in respect of shops, commercial establishments, and others, it is applicable if the strength is 50 and above.

Ok, I understand. Can you cite where it is shown in the Act that the Act is applicable to commercial establishments only if the number of employees exceeds 50 so that I can also direct my persons in Bangalore accordingly and avoid paying the contribution?

Please read paragraph 4 (iii) of The Karnataka Labour Welfare Fund Act, 1965 to clarify any doubts regarding its applicability.

Suresh

Dear All,

Thank you so much for the information. Our organization is comprised of fewer than 50 members; hence, I understand that we do not need to pay LWF until we exceed 50.

Thank you.

Till now, there is no option to file annual returns online. At least the KLWF Department is supposed to release an online payment option in Khajane-II.

Hi,

My company is registered in Haryana, but we have provided services to Reliance in Karnataka. Hence, Reliance is asking us to pay KLWF in Bengaluru for the same. Could you please confirm whether we can submit the payment or not? Additionally, could you confirm the late payment penalty charges that apply? Can we send Form D along with a DD by courier to the office address of KLWF in Bengaluru, Karnataka?

I urgently request confirmation.

Pooja

Hi,

Can anyone tell me if we need to pay the LWF fund? There are 20 employees working at Multiplux. I am not sure whether we have to pay LWF for all 20 members or not.