The Karnataka government is likely to introduce a bill to amend the Karnataka Labor Welfare Fund Act, 1965 to increase the contribution of employees, employers and the government to the fund.
It has been decided to amend section 7 (a) (2) of the Act to increase the employee’s contribution from 20 to 50 rupees, the employer’s contribution from 50 rupees to 100 rupees and the state from 20 rupees to 50 rupees. Cabinet meeting last week.
The change in contribution will enable an increase of Rs 15.81 crore in the welfare fund from the current Rs 42.18 crore, said Law Minister HK Patil. “It was decided to table the Karnataka Labor Welfare Fund (Amendment) Bill 2024 in the legislative session,” Patil said.
The winter session of the Karnataka legislature will begin on December 9 and the bill is likely to be introduced in the session.
“This will enable the creation of new programs for the welfare of workers and their families,” Patil added.
The Karnataka Labor Welfare Fund is managed by the State Labor Welfare Board to provide for the social security needs of the workers. Factories, establishments employing more than one person, organizations employing more than 50 persons, charitable trusts with more than 50 employees, shops and commercial establishments with more than 50 employees, and plantations/properties employing more than one person will have to deposit funds for workers. Welfare Board.
This fund is currently being used to pay education fees for engineering students who earn a maximum of Rs 20,000 per month and less than Rs 35,000 per month. The fund will provide workers under the Employees State Insurance Scheme from Rs 1,000 to Rs. 25,000 also provides medical assistance. An accident allowance of Rs 1,000 to Rs 10,000 and maternity allowance of Rs 10,000 are also given.
The fund also facilitates health camps and recreational activities like tours for workers.
Karnataka’s Siddaramaiah-led Congress government’s move to increase contributions to the state labor welfare fund comes amid a major drain on state funds that includes five government guarantees – free bus travel for women, Rs. 2,000 to the female head of each household, free electricity supply, free rice and an internship program for newly graduated unemployed youth. Diploma.