Clarification On Rates Of LWF Contribution For The Year 2020 Under The Karnataka LWF Act, 1965

Due to the repealing of the Karnataka Labour Welfare Fund (Amendment) Act, 2017 vide.

The Karnataka Repealing Of Certain Enactments And Regional Laws Act, 202 dated 1st December 2020, there was a certain presumption that rates of LWF contribution were restored to the earlier rates i.e. Rs. 6 and 12 for Employees and Employers as opposed to the existing rates i.e. Rs. 20 and 40 respectively.

Now, the Karnataka LWF Board vide. its Press Release as hosted on its website has clarified that the rates of contribution remain at the ratio of 20:40 (Employees Rs.20/- Employers Rs.40/-) respectively. Further Employers shall remit contributions only through online mode by 15th January 2021 for the calendar year 2020.

Therefore, Employers in Karnataka are advised to continue to deduct the contribution to the Welfare Fund from the salaries of employees at the rate of Rs.20/- along with Employer's contribution of Rs.40/- and remit the amount online on or before 15th January 2021 on https://klwb.karnataka.gov.in/ along with a statement in Form ‘D’ prescribed under the Karnataka Labour Welfare Fund Act & Rules.

The deduction of employee’s contribution shall be only in respect of the employees who are on the rolls of the establishment as of 31st December 2020. Since there have been two documents pertaining to the same subject and basis our attempts to reach the State Labour Welfare Department, employers are advised to proceed with payment of LWF contribution as per existing rates until further notice from Authority.

Global Icon Team will update the revised notification if any as published in the gazette of Karnataka from time to time. 

Effective date would be 21 December 2020.

Kindly refer to the press note for more details.

Notification:-Clarification_On_Rates_Of_LWF_Contribution_For_The_Year_2020_Under_The_Karnataka_LWF_Act_1965.pdf