The Labour Welfare Fund (LWF) is a statutory initiative aimed at improving the living and working conditions of employees across various sectors. In the Union Territory of Chandigarh, the LWF is governed by The Punjab Labour Welfare Fund Act, 1965 and Rules of 1966, which are applicable to Chandigarh by extension.
This blog provides employers and HR professionals a complete overview of LWF applicability, contribution structure, and compliance responsibilities in Chandigarh.
For any assistance in
HRMS, Payroll & Compliance Outsourcing, Tax Management or S&E Registration, do contact us.
We provide PAN India service.
Click here to get the Lowest QuotesOverview of the Labour Welfare Fund in Chandigarh
The Labour Welfare Fund is designed to support various employee-centric initiatives such as health services, education, housing, vocational training, and recreational facilities. It is funded through mandatory contributions from both employers and employees.
Applicability of LWF in Chandigarh
LWF in Chandigarh is applicable to:
- Any employer or establishment that has employed 10 or more employees on any day during the previous 12 months.
It is important to note that the Act excludes managerial staff and those not directly employed in wage-earning roles.
Contribution Structure for Chandigarh
The Labour Welfare Fund contribution in Chandigarh is collected on a monthly basis and applies to employees based on salary thresholds.
| Category | Employee Contribution | Employer Contribution | Total Contribution |
| Employees drawing salary up to ₹15,000 per month | ₹5.00 | ₹20.00 | ₹25.00 |
Date of Deduction: Last working day of every month
Due Dates for Submission: 15th April and 15th October every year
Update:
The salary threshold has been revised to ₹15,000 per month, meaning employees earning above this amount are not liable for LWF contributions.
Compliance and Filing Requirements
Frequency:
- Monthly contributions, with biannual submissions
Form:
- No specific form has been notified online, but contributions must be deposited with the Labour Welfare Board as per the rules.
Official Portal:
Employers are advised to regularly check the official website for circulars, notifications, or any changes in procedures.
- Abhijit Bhaduri: The Story of an HR Who Became a Unicorn
- EPFO Mandates Employers to Public Display of Form 5A: (by Oct 22, 2025)
- EPFO Revamped ECR Rollout (Effective Sept 2025 Payroll)
- Prabir Jha: The Maverick CHRO Across Fortune 500 Giants
- Corporate Group Health Insurance in India: Benefits + Buyers
Why Labour Welfare Fund Compliance is Important
LWF contributions help the state and union territory governments roll out various welfare programs that directly benefit workers, including:
- Educational scholarships for workers’ children
- Subsidized medical services
- Housing assistance
- Marriage assistance grants
- Skill development training
By contributing to the LWF, employers play a role in supporting holistic employee welfare and social security.
Penalties for Non-Compliance
Delayed or non-submission of the Labour Welfare Fund contributions can lead to:
- Financial penalties
- Legal proceedings
- Reputational risk for the establishment
Hence, maintaining timely deductions and submissions is essential for every eligible employer.
Need Help with LWF Filing in Chandigarh?
Ensuring compliance with Labour Welfare Fund regulations can be time-consuming. If you require support for calculating contributions, preparing payroll deductions, or ensuring timely filings, our team is here to help.
Get in touch with us today for complete LWF compliance support for your Chandigarh-based workforce.
For any assistance in
HRMS, Payroll & Compliance Outsourcing, Tax Management or S&E Registration, do contact us.
We provide PAN India service.
Click here to get the Lowest Quotes
