The Government of Karnataka on January 10th 2025 in a significant move to update the Karnataka Labour Welfare Fund, the Government of Karnataka has released an amendment to the Karnataka Labour Welfare Fund Act, 1965. The amendment is officially known as the Karnataka Labour Welfare Fund (Amendment) Act, 2024, and it brings notable changes to the contributions made to the Fund.
Key Amendment Details:
The amendment focuses on Section 7A of the original Act, which deals with the contributions to the Labour Welfare Fund. Specifically, in sub-section (2) of Section 7A, the previous contribution amounts have been revised.
Before the amendment, the contribution amounts were as follows:
- Employer’s contribution: ₹20
- Employee’s contribution: ₹40
- State Government’s contribution: ₹20
After the amendment, the contribution amounts have been increased to:
- Employer’s contribution: ₹50
- Employee’s contribution: ₹100
- State Government’s contribution: ₹50
These updated contributions will apply to every employee whose name is listed in the register of an establishment as of December 31st of the year.
What Does This Mean for Workers and Employers?
The revised contributions mean that both employees and employers will be required to contribute higher amounts to the Karnataka Labour Welfare Fund. For employers, the increase in their share is a notable shift, while employees will now need to contribute more as well. The State Government’s increased contribution further emphasizes the commitment to strengthening the Fund.
Additional Provisions in the Act:
The amended Act also contains a provision for the removal of difficulties that may arise in giving effect to its provisions. If any challenges emerge, the Government of Karnataka can make necessary orders, which will be laid before the State Legislature for review. However, such orders can only be made within two years from the commencement of the Act.
Impact on the Welfare Fund:
The changes are aimed at enhancing the resources available in the Labour Welfare Fund, which plays a crucial role in supporting workers in various sectors across the state. By increasing the contributions, the state aims to ensure that the Fund can continue to provide essential welfare services, such as healthcare, education, and other social benefits to employees.
