On December 12, 2024, the Government of Karnataka notified the Karnataka Labour Welfare Fund (Amendment) Act, 2024, amending the existing Karnataka Labour Welfare Fund Act, 1965. This amendment focuses on increasing the contribution rates from employees, employers, and the state government to the Karnataka Labour Welfare Fund.
Key Highlights of the Amendment:
- Increased Employee Contribution: The contribution rate for employees has been raised from Rs 20 to Rs 50.
- Increased Employer Contribution: Similarly, employers are now required to contribute Rs 100, up from the previous rate of Rs 40.
- Increased State Government Contribution: The state government’s contribution to the fund has also been increased, from Rs 20 to Rs 50.
Changes to Section 7(a)(2) of the Act:
The amendment specifically affects Section 7(a)(2) of the Karnataka Labour Welfare Fund Act, 1965, which outlines the contribution rates from employees, employers, and the state government to the fund. These revised contribution rates are aimed at strengthening the fund to support the welfare of workers in the state.
Impact:
The increase in contributions from all parties is expected to bolster the Labour Welfare Fund, ensuring better support and resources for workers in Karnataka. The revised contributions will help improve welfare schemes, such as health benefits, housing, and educational assistance for workers.
This amendment marks a significant step in enhancing worker welfare in Karnataka, ensuring that the fund is adequately financed to meet its objectives.
