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Labour Law India · Just now · 214 views

My employer in Gulbarga deducts from my salary saying it goes to the labour welfare fund, is this legal?

AJ Asked by Ajay Malhotra from India

Quick Answer

Yes, it is legal for your employer to deduct from your salary for the Labour Welfare Fund as per the provisions of the Karnataka Labour Welfare Fund Act, 1965. The Labour Welfare Fund is established to promote the welfare of workers in the state, and contributions are mandatory for both employers and employees under certain conditions.

Detailed Legal Analysis

Yes, it is legal for your employer to deduct from your salary for the Labour Welfare Fund as per the provisions of the Karnataka Labour Welfare Fund Act, 1965.

The Labour Welfare Fund is established to promote the welfare of workers in the state, and contributions are mandatory for both employers and employees under certain conditions. Here are the key points you should consider:

  • Legal Basis: The Karnataka Labour Welfare Fund Act, 1965 mandates the establishment of a fund for the welfare of labourers and stipulates contributions from employers and employees.
  • Contribution Rates: As per Section 3 of the Act, every employer is required to contribute a certain percentage of the salary of their employees to the fund. The current rate is typically set at Rs. 20 per employee per month, but this may vary as per the latest government notifications.
  • Employee Contribution: Employees also contribute to the fund at a similar rate. This dual contribution system ensures that both parties invest in the welfare of workers.
  • Applicability: The fund applies to all establishments employing ten or more workers, as defined under the Act. If your workplace meets this criterion, the deduction is justified.
  • Utilization of Funds: The funds collected are used for various welfare activities such as providing housing, medical facilities, and education for the workers and their families.
  • Legal Compliance: Employers are required to comply with the provisions of the Act and must inform employees about the deductions and the purposes for which the funds are utilized.

If you believe that the deductions are being made incorrectly or if the employer is not contributing their share, you may approach the Labour Commissioner or the appropriate authority in Gulbarga for redressal. It is advisable to keep records of your payslips and any communication regarding the deductions to substantiate your claims.

In conclusion, the deductions made by your employer towards the Labour Welfare Fund are legal under the Karnataka Labour Welfare Fund Act, 1965, provided that the deductions are made according to the prescribed rules and regulations.

Legal Provisions Referenced

Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.

Last updated: October 4, 2026 AI-assisted answer

Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.

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