Karnataka Labour Welfare Fund (Amendment) Act, 2025
- January 7, 2026
- Posted by: AscentHR
- Categories: Karnataka, Notification
The Government of Karnataka, through notification No. DPAL 82 SHASANA 2025, dated 7th January 2026, has made amendments to the Karnataka Labour Welfare Fund Act of 1965, primarily aimed at lowering the employee threshold limit for the Act’s applicability concerning establishments. This change significantly expands the coverage of the LWF to a larger number of establishments and employees in the state. The revised employee threshold limit for the applicability of this legislation for establishments is as follows:
|
Earlier threshold limit (up to December 2025) |
Latest threshold limit effective from January 2026 |
|
More than fifty (50) persons |
Ten (10) or more persons |
Consequently, establishments with ten (10) or more employees are now included under the aforementioned legislation and must adhere to its requirements.
Will this impact the LWF contributions due in January 2026 for the calendar year 2025?
The effective date of this modification is the date of the notification, which is January 7th 2026. Therefore, this change will apply to the calendar year 2026 and not to the calendar year 2025. Consequently, this amendment will not affect the contributions required for the calendar year 2025.
Additional changes:
In addition to the aforementioned changes, the method of remittance via “Cheque” has been eliminated and substituted with online payment options (Net banking / NEFT / RTGS / UPI) or Demand Draft.
Please refer below to the notification:
Regulatory Insights
As organisations prepare to transition to the Four Labour Codes, we’ve curated a set of reference resources to support the HR fraternity to navigate the changes.
Ensure your business is future-ready
- Talent Acquisition, On-boarding & Confirmation
- Employee DB & Lifecycle Management
- Attendance, Leave, Shift Management
- Performance Management, Learning & Development
- HR Letters & Document Management
- Managed Payroll & Compliance
Find out how we can help with an intuitive & flexible HR Management System.
Resources
Did You Know?
70% of businesses struggle to keep up with frequent regulatory amendments, leading to unintentional violations, resulting in heavy penalties.
Protect your business, cut risk, boost efficiency – with our Compliance Solutions.
