Karnataka to amend labour law to increase contributions to workers’ welfare fund

The changes in the contributions will enable an increase of Rs 15.81 crore in the welfare fund from the current amount of Rs 42.18 crore, Law Minister H K Patil said. “A decision was taken to place the Karnataka Labour Welfare Fund (Amendment) Bill 2024 in the legislature session,” Patil said.

The Winter Session of the Karnataka legislature is set to begin on December 9 and the bill is likely to be tabled in the session.

“This will enable the formulation of new programmes for the welfare of workers and their families,” Patil added.

The Karnataka Labour Welfare Fund is managed by the state labour welfare board to provide the social security needs of workers. Factories, establishments employing more than one person, societies employing more than 50 people, charitable trusts with more than 50 employees, shops and commercial establishments with more than 50 workers and plantations/estates employing more than one person are required to deposit funds to the labour welfare board.

The fund is currently used to pay the education fees of workers who receive less than Rs 35,000 per month with a maximum of Rs 20,000 allocated for engineering students. The fund also provides medical aid between Rs 1,000 to Rs 25,000 to workers covered under the Employees’ State Insurance Scheme. An accident benefit of Rs 1,000 to Rs 10,000 and a maternity benefit of Rs 10,000 is also provided.

The fund also facilitates health camps and recreational activities like tours for workers.

The move by the Siddaramaiah-led Congress government in Karnataka to increase contributions to the state labour welfare fund comes amid a huge outflow in state funds to fulfil a Rs 56,000 crore bill for five guarantees of the government – like free bus travel for women, Rs 2,000 for the women head of every household, free power supply, free rice and an internship programme for unemployed youths with recent degrees and diplomas.