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Labour Welfare Fund in Chandigarh: contribution, due dates and coverage

How much Labour Welfare Fund to deduct in Chandigarh, what the employer adds, when it is paid, who is covered and what happens if it is late, from the Punjab Labour Welfare Fund Act, 1965, as applied to Chandigarh and the Board's official pages as of 21 October 2026.

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Short answer

In Chandigarh the Labour Welfare Fund contribution is ₹5 a month from the employee and ₹20 a month from the employer per employee, ₹25 in all, the rate since April 2018 on the Chandigarh Labour Department's official page. Registration and deposit are online through ServicePlus. Unpaid wages, bonus and gratuity outstanding for three years also go to the Board.

LWF contribution in Chandigarh

The contribution is fixed by section 9A of the Punjab Labour Welfare Fund Act, 1965, as applied to Chandigarh.

FromEmployee a monthEmployer a monthTotal
May 2009₹1₹2₹3
December 2012₹2₹4₹6
April 2018 (current)₹5₹20₹25

Rate history from the Chandigarh Labour Department's "Deposit of Labour Welfare Fund" page. Chandigarh follows its own notifications under the Punjab Act; Punjab's 2025 amendment limits that Act to the State of Punjab.

When to deduct and pay

  • The official page does not state the deposit periods or due dates. Ask the Chandigarh Labour Welfare Board, or check the ServicePlus user manual, before fixing your schedule.

Who is covered

  • The official page does not state the size threshold for the UT; check with the Board.

Late payment, interest and where to pay

The official Chandigarh page we read does not state the interest or penalty for late payment, so we have not given a figure. Ask the Board before relying on one from elsewhere.

Register and deposit on ServicePlus, linked from the Labour Department page.

Worked example

A Chandigarh coaching centre has 3 staff for all 12 months of 2026.

ItemCalculationAmount for the year
Deducted from staff3 × ₹5 × 12₹180
Employer share3 × ₹20 × 12₹720
Total deposited₹180 + ₹720₹900

What we could not confirm

Not found on an official source on 21 October 2026, so not stated as fact here:

  • Deposit periods and due dates
  • Coverage threshold
  • Interest or penalty for late deposit
  • Notification number of the April 2018 revision

Keep LWF in the same payroll run as PF and ESI

LWF is small, but it is a separate deduction with its own dates, and it is the one most often forgotten. FundRaksha HR runs payroll with PF, ESI and professional tax, and lets you add LWF as a fixed deduction in the months your State collects it, so payslips show it correctly. Check the other deductions with the PF calculator and ESI calculator, and see every State on the labour welfare fund by state page.

Sources

Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.

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FAQ

Questions, answered

₹5 a month from the employee and ₹20 a month from the employer per employee, in force since April 2018.

This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.