Labour Welfare Fund (LWF) in Punjab 2026

Employee and employer LWF contribution, filing frequency, collection cycle, and the governing Act for payroll teams in Punjab.

Rs.5

Employee share

Rs.20

Employer share

Rs.25

Total / cycle

Monthly

Frequency

Source: Punjab Labour Welfare Fund Act, 1965. Verify the current rate with the Punjab Labour Welfare Board before filing.

Key Takeaway Last reviewed: June 2026

What is the LWF contribution in Punjab?

In Punjab, LWF is Rs.5 (employee) + Rs.20 (employer) = Rs.25 per employee, collected monthly (every month) under the Punjab Labour Welfare Fund Act, 1965.

Quick Reference

LWF Rates in Punjab

Contribution, frequency, cycle, and governing Act at a glance.

Item	Value	Note
Employee contribution	Rs.5	Deducted from salary, shown on payslip
Employer contribution	Rs.20	Added by employer, not on payslip
Total per employee	Rs.25	Per contribution cycle
Frequency	Monthly	How often LWF is collected
Collection cycle	every month	When the contribution is due
Governing Act	Punjab Labour Welfare Fund Act, 1965	State statute that levies LWF
Administered by	Punjab Labour Welfare Board	Receives and spends the fund

Source: Punjab Labour Welfare Fund Act, 1965. Verified as on June 2026. State boards revise rates periodically; confirm with the Punjab Labour Welfare Board before filing.

How It Works

LWF Deduction and Filing in Punjab

Deduct employee share

Deduct Rs.5 from the employee in the monthly cycle.

Add employer share

Add Rs.20 as employer cost to reach Rs.25 per employee.

Reconcile headcount

Exclude exempt managerial staff and apprentices before totalling.

Deposit to board

Pay the total to the Punjab Labour Welfare Board and file the prescribed return.

factoHR India

Automate Punjab LWF

factoHR India deducts Punjab LWF on the payslip, applies the correct cycle, generates challans, and produces board-ready returns.

Book a Demo

LWF in Other States

All states

Tamil Nadu Telangana West Bengal Andhra Pradesh Chandigarh Chhattisgarh

FAQ

Punjab LWF FAQs

What is the LWF contribution in Punjab for 2026?

Punjab charges Rs.5 from the employee and Rs.20 from the employer, a total of Rs.25 per employee. It is collected monthly (every month) under the Punjab Labour Welfare Fund Act, 1965.

How often is LWF paid in Punjab?

LWF in Punjab is paid monthly. Employers deduct the employee share, add the employer share, and deposit the total to the Punjab Labour Welfare Board in the every month cycle. Verify the exact due date with the board.

Who is exempt from LWF in Punjab?

Employees in managerial or supervisory roles above the state wage ceiling are usually exempt, along with apprentices under the Apprentices Act, 1961. Check the Punjab Labour Welfare Fund Act, 1965 for the applicable ceiling and exemption list.

Is LWF shown on the Punjab payslip?

Yes. The employee LWF share of Rs.5 appears as a separate deduction on the payslip. The employer share of Rs.20 is not on the payslip but is recorded in payroll registers and the LWF return.

How does factoHR India handle Punjab LWF?

factoHR India deducts the Punjab LWF share on the payslip, applies the monthly cycle, generates the LWF challan, and produces board-ready returns. Rates update when the Punjab Labour Welfare Board revises them.

If you employ staff in Punjab, the same workforce is also covered by minimum wage rates in Punjab, working-hour and overtime rules in Punjab, and the public holiday calendar for Punjab. Keep every Punjab statutory obligation aligned across your payroll.