Deadline for remittance of contributions under the Karnataka Labour Welfare Fund Act 1965
Reproduced with the permission of the authors Gerald Manoharan, Sonakshi Das, Sandhya Swaminathan at JSA advocates and solicitors.
The Karnataka Labour Welfare Board Bangalore, Government of Karnataka, video press note dated 16 January 2023, mandated inter alia, factories and commercial establishments employing 50 and more workers, and covered under the Karnataka Labour Welfare Fund Act 1965 (“KLWF Act”) to remit compulsory contributions in accordance with the KLWF Act, on or before 31 January 2023. It also clarifies that factories and establishments covered under the KLWF Act are liable to make a contribution of INR60 per employee (i.e. a contribution of INR20 from each employee and INR40 from the employer), which can also be paid through their online portal. A delay in the payment of the contributions leaves you liable to attract penal interest at a rate of 12% for the first three months, and thereafter, at a rate of 18% on the amount due. Failure to pay a contribution will attract initiation of legal proceedings by officers of the Labour Department, Karnataka and inspection by Welfare Commissioner.
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