(1) On the commencement of this Act, the State Government shall establish in and for the State, a fund called "The Karnataka Toddy Workers' Welfare Fund" which shall consist of ,-
(a) such sums as an employer shall from time to time contribute under clause
(a) of sub-section (3) ;
(b) such sums as an employee shall from time to time contribute under clause
(b) of sub-section (3) ; and
(c) the interest which may, from time to time, accrue on the sums of the Fund invested or reinvested under sub-section (4).
(2) The Fund shall vest in and be administered by the Board in such manner as may be provided for in the Scheme.
(3) There shall be contributed to the Fund ,-
(a) by the employer ,-
(i) an amount equal to five percent of the wages for the time being payable to each of the employees ; and
(ii) as gratuity an amount equal to five per cent of the wages for the time being payable to each of the employees ;
(b) by the employee an amount equal to five per cent of the wages for the time being received by him.
(4) The Board may from time to time invest or reinvest in the securities of the State Government or in any Scheduled Bank all or any sum at the credit of the Fund which may not be required immediately for any of the purposes for which it may be spent.