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Karnataka Labour Welfare Fund (KLWF) Slabs & Compliance Guide (2026)

The Karnataka Labour Welfare Fund (KLWF) is constituted and administered pursuant to The Karnataka Labour Welfare Fund Act, 1965 and the Karnataka Labour Welfare Fund Rules, 1968.

Unlike monthly or bi-annual states, Karnataka operates on a strictly annual deduction cycle synchronized with the close of the calendar year in December.

Statutory Act Reference

Governing Statute: The Karnataka Labour Welfare Fund Act, 1965 (Amended 2024–2026)
Regulatory Authority: Karnataka Labour Welfare Board (KLWB), Bengaluru
Official Portal: Karnataka Labour Welfare Fund Official Portal

📊 Revised Contribution Slabs & Rates (2026)​

Following recent state gazette amendments, the contribution ratio under Section 7A was revised to enhance social security payouts:

Category / Wage BracketEmployee ContributionEmployer ContributionTotal RemittanceDeduction CycleRemittance Due Date
All Covered Employees (Regardless of basic salary)₹50.00₹100.00₹150.00Annual (December Salary)15th January
Contribution Ratio

The statutory contribution ratio in Karnataka is 1:2 (the employer contributes double the employee's deducted share).

📅 Deduction Timeline & Statutory Due Dates​

  • Deduction Month: Deductions must be made from the salary of December for all employees on the rolls as of 31st December.
  • Remittance Cutoff Date: The total combined remittance (Employee + Employer share) must be deposited with the Karnataka Labour Welfare Board on or before 15th January of the following calendar year.
  • Prescribed Return Form: Form D (Statement of Employee and Employer Contributions).

🏢 Coverage, Applicability & Exemptions​

1. Applicable Establishments​

  • Factories registered under Section 2(m) of the Factories Act, 1948.
  • Motor omnibus services and transport undertakings.
  • Commercial establishments, software companies, and retail shops registered under the Karnataka Shops and Commercial Establishments Act, 1961 employing 50 or more workers (or 10+ depending on scheduled industry notification).
  • Plantations and residential educational institutions.

2. Eligible Employees​

  • Any person employed directly by or through an agency/contractor to do any skilled, unskilled, manual, technical, or clerical work for hire or reward.

3. Non-Applicable / Exempt Roles​

  • Persons employed mainly in a managerial or administrative capacity.
  • Supervisory personnel drawing basic wages exceeding the state-notified ceiling who exercise discretionary administrative powers.
  • Apprentices engaged under the Apprentices Act, 1961.

💻 Online Challan Submission & Form D Filing​

  1. Access Web Portal: Visit the Karnataka Labour Welfare Board Portal.
  2. Employer Login: Authenticate using the establishment's registered credentials or e-Karmika registration number.
  3. Submit Employee Counts: Enter the active headcount as of 31st December.
  4. Online Payment: Pay via the integrated SBI e-Pay / cyber treasury payment gateway.
  5. Generate Form D: Complete and generate Form D electronically, ensuring the transaction reference number (UTR) is attached.
  6. Statutory Record Keeping: Maintain the stamped copy of Form D for inspection by labour compliance officers.

⚠️ Penalties for Non-Compliance​

  • Interest on Delayed Remittance: Section 7B mandates payment of simple interest at 18% per annum on all unpaid contributions from 16th January until the amount is remitted.
  • Summary Recovery: Dues remaining unpaid are recoverable as arrears of land revenue through the jurisdictional revenue authorities.
  • Prosecution: Willful default or failure to submit Form D can attract monetary penalties up to ₹5,000 and repeated offenses can lead to civil action under the Act.

❓ Frequently Asked Questions (FAQs)​

Is KLWF deducted on a monthly or annual basis?​

KLWF is deducted annually, once every calendar year from the December payroll. Employers do not deduct KLWF in any other month.

What is the total LWF amount remitted per employee in Karnataka?​

The total remittance is ₹150 per employee per year (₹50 deducted from the employee's salary and ₹100 contributed by the employer).

Does an employee joining in December have to pay KLWF?​

Yes. If the employee is active on the rolls of the company on 31st December, the statutory deduction applies in full, irrespective of the number of days worked in December.