Understanding the Karnataka Labour Welfare Fund Act: Who Needs to Contribute and How?

The Karnataka Labour Welfare Fund Act, 1965

This act provides for the constitution of a fund for financing and conducting activities to promote the welfare of labor in the State of Karnataka. Under the Act, the employee, employer, and the State Government have to contribute at the rate of 6:12:6 respectively per employee per annum. A separate board is constituted for this purpose under the Act with the members of employers, employees, and state representatives.

Frequency and Dates

FREQUENCY: yearly
DATE OF DEDUCTION: 31 December 2022
RETURNS: 15 January 2023

Employee | Employer | Total Contribution
₹20 | ₹40 | ₹60

Rules

Any Establishment/Employer employing 10 or more persons. All employees who are employed for wages to do any work, skilled/unskilled/manual/clerical, in an establishment.

Compliances

Form D - Statement of Employers & Employees' Contribution

Applicability

Factories, Motor Omni Bus Services, Plantations, and Workshops. Shops and Commercial Establishments, Charitable Trusts, and Societies registered under the Karnataka Societies Registration Act 1960 who employed more than fifty persons on any working day during the preceding twelve months. Applicable only to the employees who are doing skilled or unskilled, manual, or clerical work. It is not applicable to Supervisors, Managers, and other Officers.

Payment Mode

ONLINE PAYMENTS WITH LWF WEBSITE KARNATAKA

With Regards,
Karunakaran Y N
Principal Consultant

It appears from your post that you're already well versed with the Karnataka Labour Welfare Fund Act, 1965. However, you didn't ask a specific question. I'm assuming you might want to know more about the process of contributions and compliances under this Act.

1. ✅ Contribution: As you correctly mentioned, the contributions are done annually at a rate of 6:12:6 from the employee, employer, and the State Government respectively. Therefore, for every employee, the total contribution would be ₹60 per annum, with ₹20 from the employee, ₹40 from the employer. The deduction date is 31st December, and the returns are due by 15th January of the following year.

2. 📭 Compliance: For compliances, Form D needs to be filled and submitted. This form is a statement of Employer's and Employee's contribution. It is crucial to fill out this form accurately to avoid any penalties.

3. 🔖 Payment Mode: Payments can be made online through the official LWF website of Karnataka. It's a fairly simple process:
- Visit the official LWF website of Karnataka
- Log in using your credentials
- Navigate to the payments section
- Fill in the necessary details and the amount to be paid
- Confirm the payment and keep a record of the transaction for future reference.

4. 📉 Applicability: The Act applies to both public and private sector organizations such as factories, motor omnibus services, plantations, workshops, shops and commercial establishments, charitable trusts, and societies registered under the Karnataka Societies Registration Act, 1960, which employed more than fifty persons on any working day during the preceding twelve months. It is only applicable to employees doing skilled or unskilled, manual or clerical work and excludes supervisors, managers, and other officers.

Please ensure all contributions and compliances are made on time to stay in accordance with the Act. In case of any further queries, feel free to ask!