The State Legislature of Karnataka has amended the contribution rates under the Labour Welfare Fund legislation to revise amounts previously prescribed for worker/employer contributions under Section 7A(2) of the Act.

• The previous contribution rates described as “twenty rupees, forty rupees and twenty rupees” under Section 7A(2) have been substituted by “fifty rupees, one hundred rupees and fifty rupees” respectively.
• This implies a substantial increase in the mandatory contribution amounts under the Welfare Fund for covered workers/employers.
• The amendment is effective immediately on commencement of the Act.
• The Act also grants the Government power to issue orders to remove any difficulty in implementation, within two years of commencement, provided the orders do not conflict with the Act.