Labour Welfare Fund (LWF) in Karnataka 2026

Employee and employer LWF contribution, filing frequency, collection cycle, and the governing Act for payroll teams in Karnataka.

Rs.20

Employee share

Rs.40

Employer share

Rs.60

Total / cycle

Yearly

Frequency

Source: Karnataka Labour Welfare Fund Act, 1965. Verify the current rate with the Karnataka Labour Welfare Board before filing.

Key Takeaway Last reviewed: June 2026

What is the LWF contribution in Karnataka?

In Karnataka, LWF is Rs.20 (employee) + Rs.40 (employer) = Rs.60 per employee, collected yearly (December) under the Karnataka Labour Welfare Fund Act, 1965.

Quick Reference

LWF Rates in Karnataka

Contribution, frequency, cycle, and governing Act at a glance.

Item	Value	Note
Employee contribution	Rs.20	Deducted from salary, shown on payslip
Employer contribution	Rs.40	Added by employer, not on payslip
Total per employee	Rs.60	Per contribution cycle
Frequency	Yearly	How often LWF is collected
Collection cycle	December	When the contribution is due
Governing Act	Karnataka Labour Welfare Fund Act, 1965	State statute that levies LWF
Administered by	Karnataka Labour Welfare Board	Receives and spends the fund

Source: Karnataka Labour Welfare Fund Act, 1965. Verified as on June 2026. State boards revise rates periodically; confirm with the Karnataka Labour Welfare Board before filing.

How It Works

LWF Deduction and Filing in Karnataka

Deduct employee share

Deduct Rs.20 from the employee in the yearly cycle.

Add employer share

Add Rs.40 as employer cost to reach Rs.60 per employee.

Reconcile headcount

Exclude exempt managerial staff and apprentices before totalling.

Deposit to board

Pay the total to the Karnataka Labour Welfare Board and file the prescribed return.

factoHR India

Automate Karnataka LWF

factoHR India deducts Karnataka LWF on the payslip, applies the correct cycle, generates challans, and produces board-ready returns.

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FAQ

Karnataka LWF FAQs

What is the LWF contribution in Karnataka for 2026?

Karnataka charges Rs.20 from the employee and Rs.40 from the employer, a total of Rs.60 per employee. It is collected yearly (December) under the Karnataka Labour Welfare Fund Act, 1965.

How often is LWF paid in Karnataka?

LWF in Karnataka is paid yearly. Employers deduct the employee share, add the employer share, and deposit the total to the Karnataka Labour Welfare Board in the December cycle. Verify the exact due date with the board.

Who is exempt from LWF in Karnataka?

Employees in managerial or supervisory roles above the state wage ceiling are usually exempt, along with apprentices under the Apprentices Act, 1961. Check the Karnataka Labour Welfare Fund Act, 1965 for the applicable ceiling and exemption list.

Is LWF shown on the Karnataka payslip?

Yes. The employee LWF share of Rs.20 appears as a separate deduction on the payslip. The employer share of Rs.40 is not on the payslip but is recorded in payroll registers and the LWF return.

How does factoHR India handle Karnataka LWF?

factoHR India deducts the Karnataka LWF share on the payslip, applies the yearly cycle, generates the LWF challan, and produces board-ready returns. Rates update when the Karnataka Labour Welfare Board revises them.

If you employ staff in Karnataka, the same workforce is also covered by minimum wage rates in Karnataka, Professional Tax in Karnataka, working-hour and overtime rules in Karnataka, and the public holiday calendar for Karnataka. Keep every Karnataka statutory obligation aligned across your payroll.