The Punjab Workers Welfare Fund Act, 2019
The Punjab Workers Welfare Fund Act, 2019 was promulgated on 13 December 2024 to establish the Punjab Workers Welfare Fund for the welfare and benefit of industrial and commercial workers across the province. The Act aims to provide a permanent financial and administrative framework for workers’ welfare schemes, housing, education, healthcare, and other support initiatives. It extends to the entire province of Punjab and repeals the earlier Workers’ Welfare Fund Ordinance of 1971. All rules, regulations, notifications, and actions taken under the repealed ordinance remain valid until amended or replaced under this Act.
Under the Act, the Workers Welfare Fund consists of an initial contribution from the Government of Punjab, assets and funds transferred from the earlier Workers Welfare Fund, regular contributions from industrial and commercial establishments, and voluntary donations in the form of money, land, buildings, or other property. The Fund also receives income from investments and proceeds of loans. Every establishment whose annual income amounts to five hundred thousand rupees or more is required to contribute two percent of its total income to the Fund. Failure to make timely payment results in an additional charge of fifteen percent per annum on the outstanding amount. The Government may also determine additional contributions based on the recommendations of a committee consisting of representatives of employers and workers.
The management of the Fund is entrusted to a Governing Body established by the Government of Punjab. This body, chaired by the Secretary Labour and Human Resource Department, includes key officials from related departments along with representatives of employers and workers. The Minister for Labour and Human Resource serves as the President of the Fund, while the Secretary of the Punjab Workers Welfare Fund acts as its administrative head.
The Governing Body is responsible for allocating and managing the Fund, approving welfare expenditures, making secure investments, managing property, and maintaining transparent financial records. It may also raise or discharge loans when necessary. The Government retains the authority to issue policy directions and may exempt the Fund from provincial or local taxes and duties to ensure its smooth operation.
It is pertinent to mention that under the Punjab Workers Welfare Fund (Amendment) Act, 2025, the Employees Social Security Institution has been empowered to collect any unpaid or outstanding contributions to the Fund for the relevant year. Where any establishment has failed to pay its due contribution under the repealed Workers Welfare Fund Ordinance, 1971, the same shall be recoverable by the Employees Social Security Institution under the provisions of the Punjab Workers Welfare Fund (Amendment) Act, 2025. Non-payment may be recovered from the establishment through prescribed legal and administrative mechanisms.
The Punjab Workers Welfare Fund Act, 2019, together with its 2025 Amendment, represents a major advancement in promoting labour welfare and social protection in Punjab. It establishes a transparent and efficient system for collecting and utilizing welfare funds, ensuring that contributions from establishments directly support programs for the education, housing, healthcare, and overall well-being of workers and their families.
