The Karnataka State Legislature on December 10, 2025, introduced the Karnataka Labour Welfare Fund (Amendment) Bill, 2025 to modify specific provisions of the Karnataka Labour Welfare Fund Act, 1965. The Bill seeks to refine the applicability thresholds and modernise the modes of payment to the Labour Welfare Fund, enabling smoother compliance and administration.
The amendment to Section 2(4)(iii) replaces the phrase “more than fifty persons” with “more persons” (as per the Bill text), indicating an intended expansion of coverage for establishments under the Act—likely aiming to bring more workplaces within the remit of labour welfare obligations. Additionally, Section 7A is amended to replace older payment instruments such as cheque or crossed demand draft with contemporary online payment channels including Net Banking, NEFT, RTGS, UPI, or demand draft, thereby bringing statutory payment mechanisms in line with digital governance practices.
The Bill further inserts a Power to Remove Difficulties clause, enabling the State Government to issue orders—within two years of commencement—to resolve any implementation challenges, subject to such orders being consistent with the Act. Each such order must be placed before both Houses of the State Legislature. The Amendment Act comes into force immediately upon notification.
[LA Bill No. 68 of 2025]
