The Labour Welfare Fund in Karnataka is a small contribution from employees and employers to the Karnataka Labour Welfare Board, which runs welfare schemes for workers. Here is how much, how often, and who it covers.
Karnataka LWF contribution
| Item | Amount / timing |
|---|---|
| Employee contribution | ₹50 |
| Employer contribution | ₹100 |
| How often | once a year |
| Deducted | for each calendar year |
| Paid to the board | online between 1 and 15 January for the previous calendar year, at klwb.karnataka.gov.in |
Who it covers
Registered factories (10 or more workers with power, 20 or more without), plantations, motor transport, contractors with 20 or more contract workers, and shops, commercial and IT establishments, charitable and educational establishments and societies employing 50 or more.
What employers need to know
- The state government adds ₹50 per employee on top.
- Late payment attracts 12% interest for the first three months and 18% after that.
- Rates raised by the Karnataka Labour Welfare Fund (Amendment) Act, 2024, gazetted on 10 January 2025 and applied from calendar year 2025.
- The fund is set up under the Karnataka Labour Welfare Fund Act, 1965 (as amended by Karnataka Act 05 of 2025).
How HivePayroll handles Karnataka LWF
HivePayroll deducts the employee’s share in the right month for Karnataka, records the employer’s share alongside it, and lists both in the LWF report you use to pay the board.
HivePayroll runs payroll with PF, ESI, professional tax, LWF and TDS for Indian businesses. See pricing or book a free demo.
Sources
Checked against these sources on 26 September 2026. State governments revise these rates from time to time; confirm on the official site before filing.
Other states
Labour welfare fund in Maharashtra · Tamil Nadu · Delhi · Telangana. All states.
Also see Professional Tax in Karnataka.
Related: statutory compliance in HivePayroll · PF calculator · income tax calculator
