Labour Welfare Fund · Karnataka
Karnataka LWF Amendment 2026: Ten-Person Threshold
Karnataka Act 05 of 2026 lowers the employee-count threshold in section 2(4)(iii) of the Labour Welfare Fund Act from more than fifty persons to ten or more persons. Published on 7 January 2026, it provides for immediate commencement.
- Jurisdiction
- Karnataka
- Effective from
- 07 January 2026
- Issued on
- 07 January 2026
- Status
- Published
- Reference
- Karnataka Act 05 of 2026; DPAL 82 SHASANA 2025
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At a glance
Notification details
Published reference
Notification and employer guidance
Karnataka Act 05 of 2026 lowers the employee-count threshold in section 2(4)(iii) of the Labour Welfare Fund Act from more than fifty persons to ten or more persons. Published on 7 January 2026, it provides for immediate commencement.
Two operative changes
| Provision | Change |
|---|---|
| Section 2(4)(iii) | The specified establishment-definition threshold becomes ten or more persons |
| Section 7A(3) | Payment wording is updated to net banking, NEFT, RTGS, UPI or demand draft |
The amendment is titled the Karnataka Labour Welfare Fund (Amendment) Act, 2025, while its published Act number is 05 of 2026. The headcount change must be applied within the full establishment definition and relevant employee exclusions. The text does not revise contribution amounts.
Employer action
- Review establishments previously treated as outside section 2(4)(iii) because their headcount did not exceed fifty. Document the applicable establishment category and count.
- Reassess registration and contribution handling with the board where the revised definition brings an establishment within coverage.
- Use the board’s supported payment route and retain the payment reference with the contribution computation. Keep the coverage amendment separate from any rate-amendment history.
Frequently asked questions
Does the threshold change apply to every provision of the Act?
The substitution is specifically in section 2(4)(iii). Other parts of the establishment and employee definitions must still be considered.
Is this the earlier amendment that increased contribution amounts?
This January 2026 instrument changes coverage wording and payment channels. Contribution amounts should be supported by the separate applicable rate source.
Why does the title say 2025 while the Act number says 2026?
The Gazette uses that title and identifies the published legislation as Karnataka Act 05 of 2026. Preserve both when citing it.
Source and reference
Primary source copy hosted by a third-party archive: Karnataka Labour Welfare Fund (Amendment) Act, 2025 — Act 05 of 2026 (Sankhla-hosted PDF).
Related compliance references
Government document · Sankhla-hosted copy
Check the controlling notification.
Karnataka Labour Welfare Fund (Amendment) Act, 2025 — Act 05 of 2026 · Department of Parliamentary Affairs and Legislation, Government of Karnataka
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