{"id":2924,"date":"2026-01-08T13:27:16","date_gmt":"2026-01-08T07:57:16","guid":{"rendered":"https:\/\/www.sgcms.com\/regulatory-updates\/?p=2924"},"modified":"2026-01-08T16:48:51","modified_gmt":"2026-01-08T11:18:51","slug":"karnataka-expands-labour-welfare-fund-reach-with-new-2025-amendment","status":"publish","type":"post","link":"https:\/\/www.sgcms.com\/regulatory-updates\/karnataka-expands-labour-welfare-fund-reach-with-new-2025-amendment\/","title":{"rendered":"Karnataka Expands Labour Welfare Fund Reach with New 2026 Amendment"},"content":{"rendered":"<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">In a major update for employers in Karnataka, the state government has notified the\u00a0<strong>Karnataka Labour Welfare Fund (Amendment) Act, 2025 (Karnataka Act No. 05 of 2026)<\/strong>. This amendment received the Governor&#8217;s assent on January 6, 2026, and was published in the Karnataka Gazette on January 7, 2026, making it effective immediately.<\/p>\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">The changes aim to broaden the Act&#8217;s scope and streamline compliance in the digital age. Here are the top <strong>highlights<\/strong>:<\/p>\n<ul class=\"marker:text-quiet list-disc\">\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>Broader Coverage for Establishments<\/strong>: The threshold for applicability has dropped significantly\u2014from factories, shops, or establishments employing more than 50 workers to\u00a0<strong>any establishment with 10 or more employees<\/strong>. This expansion brings smaller businesses under the welfare fund obligations, promoting wider worker benefits.<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>Digital Payment Options Introduced<\/strong>: Gone are the days of mandatory cheques or crossed demand drafts. Employers can now contribute seamlessly via modern channels, including:<\/p>\n<ul class=\"marker:text-quiet list-disc\">\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Net Banking<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">National Electronic Funds Transfer (NEFT)<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Real Time Gross Settlement (RTGS)<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Unified Payments Interface (UPI)<\/p>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\">Demand Draft<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li class=\"py-0 my-0 prose-p:pt-0 prose-p:mb-2 prose-p:my-0 [&amp;&gt;p]:pt-0 [&amp;&gt;p]:mb-2 [&amp;&gt;p]:my-0\">\n<p class=\"my-2 [&amp;+p]:mt-4 [&amp;_strong:has(+br)]:inline-block [&amp;_strong:has(+br)]:pb-2\"><strong>Immediate Effect with Flexibility<\/strong>: The amendments kicked in right away on publication (January 7, 2026). To ease implementation, the state government can issue clarifying orders for up to\u00a0<strong>two years<\/strong>\u00a0to address any teething issues.<\/p>\n<\/li>\n<\/ul>\n<p><strong>Official Notification:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-2162\" src=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png\" alt=\"pdf icon\" width=\"32\" height=\"45\" srcset=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-210x300.png 210w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon-105x150.png 105w, https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2024\/09\/pdf-icon.png 512w\" sizes=\"auto, (max-width: 32px) 100vw, 32px\" \/> <strong><a href=\"https:\/\/www.sgcms.com\/regulatory-updates\/wp-content\/uploads\/2026\/01\/KALWFA2026Jul1.pdf\">Karnataka LWF Amendment<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a major update for employers in Karnataka, the state government has notified the\u00a0Karnataka Labour Welfare Fund (Amendment) Act, 2025 (Karnataka Act No. 05 of 2026). This amendment received the Governor&#8217;s assent on January 6, 2026, and was published in the Karnataka Gazette on January 7, 2026, making it effective immediately. The changes aim to&hellip; <a class=\"more-link\" href=\"https:\/\/www.sgcms.com\/regulatory-updates\/karnataka-expands-labour-welfare-fund-reach-with-new-2025-amendment\/\">Continue reading <span class=\"screen-reader-text\">Karnataka Expands Labour Welfare Fund Reach with New 2026 Amendment<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2099,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57,61],"tags":[54,66,73],"class_list":["post-2924","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","category-labour-welfare-fund-lwf","tag-compliance","tag-labour-welfare","tag-shops-establishments","statesofindia-karnataka","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Karnataka Expands Labour Welfare Fund Reach with New 2026 Amendment - Regulatory Updates by SGCMS<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sgcms.com\/regulatory-updates\/karnataka-expands-labour-welfare-fund-reach-with-new-2025-amendment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Karnataka Expands Labour Welfare Fund Reach with New 2026 Amendment - Regulatory Updates by SGCMS\" \/>\n<meta property=\"og:description\" content=\"In a major update for employers in Karnataka, the state government has notified the\u00a0Karnataka Labour Welfare Fund (Amendment) Act, 2025 (Karnataka Act No. 05 of 2026). 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