Labour welfare fund
Employee and employer shares paid.
All payroll & labour compliance services
Payroll & Labour Compliance
Labour Welfare Fund and Contract Labour
FinAura handles two compliance areas employers often miss: state labour welfare fund contributions, deducted and paid in each state that has one, and contract labour, now governed by the Occupational Safety, Health and Working Conditions Code. We check whether you and your contractors are covered, keep the records, and verify that contractors pay their workers' dues.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Labour Welfare Fund and Contract Labour Covers
Small amounts, real penalties, easy to miss.
State coverage
Each state's fund and dates.
Contractor licences
Checked under the OSH Code.
Contractor dues
Workers' PF, ESI and wages verified.
Records
Registers kept as the code requires.
Principal employer duties
What falls on you if the contractor defaults.
How the month runs
How It Works
Check, register, verify, record.
Step 1
Check
- States with a fund
- Contractors used
- Headcount
Step 2
Register
- LWF registration
- Contractor licences
- Your registration
Step 3
Verify
- Contractor challans
- Wage payments
- Attendance
Step 4
Record
- Returns
- Registers
- Inspections
Your part
What We Need From You
- 01Employee list by state
- 02List of contractors and their workers
- 03Contracts with contractors
- 04Contractors' compliance documents
Our part
What You Get
- LWF paid in every state
- Contractors checked each month
- Your liability as principal employer covered
- Records ready for inspection
A common question
Why does contract labour matter to the company that hires the contractor?
As principal employer, you can become liable for contract workers' wages and contributions if the contractor does not pay them.
Monthly checks of contractor challans and wage records, now under the OSH Code, protect you from that exposure.
See labour law registrationsEvidenceRecords and challans
PaymentLWF and dues
CoverageStates and contractors
Who it is for
Who It Is For
Employers using contractors
Security, housekeeping, manpower.
Manufacturers
Contract workers on site.
Multi-state employers
Several welfare funds.
Companies with inspection notices
Records to rebuild.
The rules, in plain English
What the Law Says
Labour codes
In force from 21 November 2025
Four labour codes replaced 29 central labour laws, including the PF, ESI, gratuity, bonus, minimum wages and contract labour Acts. Central rules were notified in 2026; state rules are still being notified.
Official source: labour.gov.inLabour codes
OSH Code: contract labour
The Occupational Safety, Health and Working Conditions Code governs contract labour, with licences for contractors and duties for the principal employer.
Official source: labour.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Labour Welfare Fund and Contract Labour: Questions, Answered
Is labour welfare fund applicable in Karnataka?
Yes. Karnataka has a labour welfare fund with contributions from employees and employers; we check which employees are covered and pay it by the state's date.
Which law governs contract labour now?
The Occupational Safety, Health and Working Conditions Code, 2020, which replaced the Contract Labour Act from 21 November 2025.
Do contractors need a licence?
Contractors above the code's limits need a licence; we check your contractors' licences and records.
What if a contractor does not pay PF for its workers?
The principal employer can be liable. We check contractor challans monthly so gaps are caught early.
Often Taken Together
All 11 Payroll & Labour Compliance services01Payroll & Labour ComplianceLabour Law RegistrationsShops and Establishment registration and the other registrations an employer needs in Karnataka.02Payroll & Labour CompliancePF Registration and ComplianceEmployer registration, employee UAN generation, monthly contribution returns and support with transfers and withdrawals.03Systems & ControlsInternal Audit & ControlsInternal audit, controls design and testing, SOP and process implementation.04Systems & ControlsPolicies & DocumentationFinance and HR policies, employee handbooks, SOPs and business documentation.