Karnataka Government notifies the Karnataka Labour Welfare Fund (Amendment) Act, 2025

The Karnataka Government has notified the Karnataka Labour Welfare Fund (Amendment) Act, 2025 (“Amendment”) to further amend the Karnataka Labour Welfare Fund Act, 1965 (“Principal Act”). The Amendment has gained effect on 7^th January 2026.

Key Changes:

1. The definition of *establishment under the Principal Act has been modified by reducing the applicability threshold from 50 persons to 10 or more persons in “establishments”.
2. E-banking system and online banking has been introduced in the procedure of contribution to the Karnataka Labour Welfare Board. The employer’s contribution and the employee’s contribution in respect of a year, which was earlier required to be paid by cheque or crossed demand draft, is now required to be paid through the following online payment channels:
   • Net banking or National Electronic Funds Transfer (NEFT), or
   • Real Time Gross Settlement (RTGS), or
   • Unified Payments Interface (UPI), or
   • Demand draft

Source: Karnataka Gazette