Applicability and Steps to File Karnataka Labour Welfare Fund
The Karnataka Labour Welfare Fund (KLWF) is a statutory benefit designed to enhance the well-being of employees in various sectors within the state of Karnataka. This article outlines the applicability of the KLWF, the steps involved in filing contributions, and the key aspects employers and employees need to know.
1. Applicability of Karnataka Labour Welfare Fund
The Karnataka Labour Welfare Fund Act, 1965, aims to promote the welfare of workers employed in factories, motor transport undertakings, plantations, shops, and commercial establishments. Below are the key points regarding its applicability:
- Eligible Establishments:
- A factory under the Factories Act, 1948 employing one or more persons
- A motor omnibus service employing one or more person
- A society registered or deemed to be registered under the Karnataka Societies Registration Act, 1960, employing more than 50 persons
- A charitable or other trust carrying on charitable business, trade or any such ancillary work, employing more than 50 persons
- Shops and commercial establishments under the Karnataka Shops and Commercial Establishments Act, 1961, employing more than 50 persons
- A plantation or workshop employing one or more persons
- A person employed for wages to do any skilled, manual, unskilled or clerical work in any of the establishments mentioned above will be covered under the Act
- Employee Contribution: Employees contribute a fixed nominal amount (currently set at INR 20 annually, subject to revision).
- Employer Contribution: Employers contribute double the employee’s share (currently INR 40 annually per employee).
- Payment Frequency: The contribution is made yearly, and the due date for payment is typically in December. Employers should refer to official notifications for exact deadlines.
2. Uses of the Karnataka Labour Welfare Fund
The KLWF is utilized for various employee welfare activities, including:
- Housing and medical facilities for workers.
- Educational schemes for worker’s children.
- Recreational activities and training programs.
- Financial assistance for specific needs and contingencies
3. Steps to File Karnataka Labour Welfare Fund Contributions
Filing contributions under the Karnataka Labour Welfare Fund involves a structured process:
Step 1: Registration
- New Employers: Employers must register their establishment under the Karnataka Labour Welfare Board. Visit the official website or the office of the Labour Welfare Commissioner to obtain registration forms.
- Documents Required: Provide business registration details, employee count, and other relevant information as required.
- 1. Industry Registration Certificate
- 2. GSTIN Certificate
- 3.PAN Card
Step 2: Calculation of Contributions
- Calculate the contributions by multiplying the number of eligible employees by the applicable contribution rates (INR 20 from employees and INR 40 from employers)
Step 3: Payment of Contributions
- Mode of Payment: Contributions can be paid online through the official Karnataka Labour Welfare Board portal or via a challan at designated banks.
- Online Process:
- Login to the official portal using your registered credentials.
- Navigate to the “Contribution Payment” section.
- Enter the required details, including employee numbers and amounts.
- Generate and download the challan or pay directly through net banking.
click to download the Excel file which need to upload
Step 4: Obtain Acknowledgment
- Ensure you receive an acknowledgment or receipt as proof of submission.
Please Note: In the payment process, January 15th is the date, after January 15th till 3 months interest will be 12% and after 3 months it will be 18%.
Conclusion
The Karnataka Labour Welfare Fund plays a crucial role in ensuring the welfare of workers in Karnataka. Employers must be diligent in understanding their responsibilities, making timely contributions, and filing accurate returns to support the well-being of their workforce. By adhering to these guidelines, both employers and employees can benefit from the schemes and assistance provided under this beneficial legislation.
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