Labour Welfare Fund in Karnataka (2026): Contribution and Rules

Labour Welfare Fund · Karnataka · checked 26 September 2026

₹50 from the employee and ₹100 from the employer, once a year.

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.

₹50employee contribution
₹100employer contribution
Once a yearhow often it is paid

Karnataka LWF contribution

How much, how often, and when it is paid.

Karnataka labour welfare fund contribution

  • Employee contribution₹50
  • Employer contribution₹100
  • How oftenonce a year
  • Deductedfor each calendar year
  • Paid to the boardonline between 1 and 15 January for the previous calendar year, at klwb.karnataka.gov.in

Who it covers

Covered

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

Rule
The state government adds ₹50 per employee on top.
Rule
Late payment attracts 12% interest for the first three months and 18% after that.
Effective
Rates raised by the Karnataka Labour Welfare Fund (Amendment) Act, 2024, gazetted on 10 January 2025 and applied from calendar year 2025.
Law
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 Labour Welfare Fund detail report with employee and employer contributions
Employee and employer LWF contributions in HivePayroll’s LWF report (demo company, fictional data; Maharashtra shown).
HivePayroll compliance dashboard with PF, ESI, Professional Tax and LWF liability for the month
The compliance dashboard shows the month’s LWF alongside PF, ESI and professional tax (demo company).

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.

Run Karnataka LWF inside your payrollHivePayroll runs payroll with PF, ESI, professional tax, LWF and TDS for Indian businesses.

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Other states

Labour welfare fund in other states, and related tools.

MaharashtraTamil NaduDelhiTelanganaAll statesProfessional Tax in KarnatakaStatutory compliance in HivePayrollPF calculatorIncome tax calculatorPricing