Karnataka Labour Welfare Fund: Applicability, Contribution, Rules, Benefits

In India, 16 states have adopted the Labour Welfare Fund Act. Out of the 16 states, Karnataka is one amongst them that has implemented the Karnataka Labour Welfare Fund Act, 1965 (‘Act’). This Act provides for the constitution of a Labour Welfare Fund for conducting and financing activities to promote the welfare of labourers and workers in Karnataka state.

Karnataka Labour Welfare Fund

The Karnataka Labour Welfare Fund (‘Fund’) is constituted as per the Karnataka Labour Welfare Fund Act. The Karnataka Labour Welfare Board (‘Board’) regulates the Fund. The Board receives the contributions made to the Fund by employees and employers covered under the Act and matching contributions from the Government. The Board utilises the fund contributions to cater to the social security needs of the workers and employees covered under the Act.

Karnataka Labour Welfare Fund rules

The Karnataka Government has also adopted the Karnataka Labour Welfare Fund Rules, 1968. These rules provide for the submission of a statement of payment of contribution from the employer, mode of contribution to the Fund, notice for payment of unpaid accumulations and fines, meetings of the Board, maintenance of audit and accounts of the Fund, etc. The Karnataka Labour Welfare Fund Act and Rules apply to the entire state of Karnataka.

Karnataka Labour Welfare Fund applicability

The following establishments are covered under the Act and must make contributions to the Fund:

• A factory under the Factories Act, 1948 employing one or more persons
• A motor omnibus service employing one or more persons
• 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.

Karnataka Labour Welfare Fund contribution

The employers and employees of the establishments covered under the Act must contribute to the Karnataka Labour Welfare Fund once a year by 31 December, and the employer must file returns with the Board by 15 January of the next year. The amount of contribution is as follows:

• Employer contribution: Rs.40
• Employee contribution: Rs.20
• Total contribution: Rs.60

Karnataka Labour Welfare Fund benefits

The Board may utilise the contributions made to the Fund for the following purposes:

• Community and social education centres, including libraries and reading rooms 
• Community necessities
• Excursions, tours and holiday homes
• Games and sports
• Entertainment and other forms of recreation
• Home industries and subsidiary occupations for unemployed persons and women
• Corporate activities of a social nature
• Cost of administering the Act, including the staff salaries and allowances for the purposes of the Act
• Such other objects, which, in the opinion of the State Government, would improve the standard of living and ease the social conditions of labour

The Board also implements certain welfare schemes to benefit the employees working in various firms, industries, transportation services and plantations and their dependents. The welfare schemes are as follows:

Education assistance to children of the workers: 

The Board provides the following financial assistance for the children of workers or employees who have contributed to the Fund and receive a salary of below Rs.35,000 per month:

The children of the workers or employees must have obtained 50% marks (for general category candidates) and 45% marks (for SC/ST category candidates) to get financial assistance. Financial assistance will be given to only one student for each family. The students should register on the Karnataka Labour Welfare Board website to apply for financial assistance.

Medical Assistance: 

The Board provides medical assistance of a minimum of Rs.1,000 to a maximum of Rs.25,000 to workers covered under the Employees State Insurance (ESI) Act. Medical assistance is given to treat major ailments, such as kidney transplantation, heart operation, cancer treatment, orthopaedic, eye, uterus operations, angioplasty, kidney stone removal, gall bladder problems and brain haemorrhage. An amount of Rs.500 to Rs.1,000 is also given for medical check-ups for each case.

Accident Benefit: 

The Board provides an accident benefit of Rs.1,000 to Rs.10,000 to workers who meet with accidents at the workplace. The workers should apply for the benefit within three months of the occurrence of an accident with medical records.

Maternity benefit for women: 

The Board provides financial assistance of Rs.10,000 as maternity benefit for working women for the first two children. The women must submit the application to the Board within six months of the delivery to receive the benefit.

Funeral Expenses: 

The Board will provide Rs.10,000 for the funeral expenses of a deceased worker to his/her dependents. The dependents must submit the application for funeral expenses with the Board within six months of the worker’s death. 

Medical Check-up Camps: 

The Board will provide Rs.1,00,000 to workers for annual medical check-up camps sponsored by trade unions or associations for workers.

Annual Sports activity: 

The Board will provide Rs.1,00,000 to workers for annual sports activity at the district level by registered trade unions. 

The workers or employees can apply for the benefits mentioned above on the Karnataka Labour Welfare Board website. The financial benefits will be directly deposited to their bank account through the RTGS facility.