Big update for all HR and Payroll professionals! Karnataka has changed the Labour Welfare Fund (LWF) rates for 2025
As per the January 2025 Gazette Notification, the new LWF contribution is—
Employee: ₹50
Employer: ₹100
Total ₹150 per employee annually.
This contribution must be deducted from the December 2025 payroll
After deduction, employers must deposit the amount to the Karnataka Labour Welfare Board by 15 January 2026.
If contributions are not remitted by the due date 15-Jan-2026 , the employer may be liable for penal interest:
• ~12% p.a. for the first 3 months delayed
• ~18% p.a. thereafter
The Notice
Karnataka LWF payment process
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