Skip to main content

Punjab & Chandigarh Labour Welfare Fund Rates & Compliance Guide (2026)

The Punjab Labour Welfare Fund is governed by The Punjab Labour Welfare Fund Act, 1965 and administered by the Punjab Labour Welfare Board (PLWB), Chandigarh. The Union Territory of Chandigarh also adopts the Punjab Act and rules for its territorial jurisdiction.

Both jurisdictions operate on a monthly deduction cycle.

Statutory Act Reference

Governing Statute: The Punjab Labour Welfare Fund Act, 1965
Regulatory Authority: Punjab Labour Welfare Board / Chandigarh Labour Department
Official Portal: Punjab Labour Department Portal

📊 Monthly Contribution Rates & Slabs (2026)​

Category / Wage BracketEmployee ContributionEmployer ContributionTotal RemittanceDeduction FrequencyStatutory Remittance Deadline
All Covered Employees (Regardless of wage limit)₹5.00₹20.00₹25.00Monthly15th of following month
Contribution Ratio

The statutory employer contribution is four times (4×) the employee's deducted share (₹5 employee vs. ₹20 employer, 1:4 ratio).

📅 Deduction Timeline & Remittance Due Dates​

  • Frequency: Deducted every month from the monthly payroll.
  • Remittance Cutoff Date: Payment must be remitted on or before the 15th of the succeeding month (e.g., January contributions are due by February 15th).
  • Prescribed Return Form: Form A (Statement of Contributions).

🏢 Applicability & Exemption Rules​

  1. Covered Establishments:
    • Factories registered under the Factories Act, 1948.
    • Motor transport undertakings operating in Punjab or Chandigarh.
    • Commercial establishments and shops registered under the Punjab Shops and Commercial Establishments Act, 1958 employing 10 or more persons.
  2. Covered Employees:
    • All manual, clerical, technical, or supervisory personnel on company rolls.
  3. Exemptions:
    • Managerial and administrative personnel drawing salary above statutory thresholds.
    • Apprentices engaged under the Apprentices Act, 1961.

💻 Online Payment & Return Procedure​

  1. Access the Punjab Labour Portal.
  2. Log in using the establishment's registration credentials.
  3. Enter active covered employee counts for the month.
  4. Pay online via Punjab e-Treasury / Cyber Treasury gateway.
  5. Generate and download receipt and Form A records.

⚠️ Penalties for Non-Compliance​

  • Penal Interest: Simple interest at 18% per annum on delayed payments.
  • Fines: Monetary fines up to ₹2,000 for initial non-filing, and persistent default can lead to recovery as land revenue arrears.

❓ Frequently Asked Questions (FAQs)​

What is the monthly deduction for Punjab and Chandigarh LWF?​

The monthly deduction is ₹5 from the employee and ₹20 from the employer, making a total monthly remittance of ₹25 per employee.

What is the due date for monthly remittance?​

The contribution must be deposited on or before the 15th of each following month.