PUNJAB WORKERS WELFARE FUND ACT 2019

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THE PUNJAB WORKERS WELFARE FUND ACT 2019 
(XXVI of 2019) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER II 
CONSTITUTION OF WORKERS WELFARE FUND 
3. Constitution of the Fund 
4. Mode of payment by, and recovery from establishments 
5. Payment of additional amount 
6. Liability to be discharged by certain persons 
7. Purposes for which the Fund may be applied 
CHAPTER III 
GOVERNING BODY 
8. Constitution of the Governing Body 
9. Secretary 
10. Appointment of the employees 
11. Governing Body to lay down procedure etc. 
12. Functions of the Governing Body 
13.  The President, his powers and functions of the President 
14. Money allocated from the Fund 
15. Maintenance of books of account etc. 
CHAPTER IV 
MISCELLANEOUS  
16. Delegation of powers 
17. Power to make rules 
18. Application of other laws 
19. Removal of difficulties 
20. Bar of suits, prosecution and other legal proceedings 
21. Exemption from taxes 
22. Repeal and saving 
 
 
 
  
TEXT 
1
THE PUNJAB WORKERS WELFARE FUND ACT 2019 
 (XXVI of 2019) 
    [13th December, 2019] 
An 
Act 
to provide for the establishment of Punjab Workers Welfare Fund. 
It is necessary to p rovide for the establishment of  the Workers Welfare Fund in 
Province of the Punjab to facilitate the workers, and for ancillary matters.  
Be it enacted by Provincial Assembly of the Punjab as follows: 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement.– (1) This Act may be cited as the 
Punjab Workers Welfare Fund Act 2019. 
 (2) It extends to whole of the the Punjab. 
 (3) It shall come into force at once. 
2. Definitions.– In this Act: 
 (a) “Act” means the Punjab Workers Welfare Fund Act 2019; 
2[(b) “Institution” means the Employees’ Social Security Institution 
established under the Provincial Employees’ Social Security 
Ordinance, 1965 (X of 1965);]  
(c) “employer” shall have the same meanings as assigned to it in section 2 
of the Punjab Industrial Relations Act 2010 (XIX of 2010);  
(d) “establishment” shall have the same meanings as assigned to it in 
section 2 of the Punjab Industrial Relations Act 2010 (XIX of 2010); 
(e) “Fund” means the Workers Welfare Fund constituted under section 3 of 
the Act; 
(f) “Governing Body”  means the Governing Body constituted under 
section 8 of the Act; 
(g) “Government” means Government of the Punjab; 
(h) “prescribed” means prescribed by the rules made under the Act; 
(i) “President” means the President of the Fund; 
(j) “Secretary” means the Secretary of the Fund; 
(k) “total income” means:  
                                                 
1This Act was passed by Provincial Assembly of the Punjab on 20 November 2019; assented to by the Governor of the Punjab 
on 10 December 2019; and, was published in the Punjab Gazette (Extraordinary), dated: 13 December 2019, pp.2547-2553. 
2Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.2. 
(i) where return of income is required to be filed under the  Income 
Tax Ordinance, 2001, the profit before taxation or provision for 
taxation as per accounts or the declared income as per the 
return of income, whichever is higher; and 
(ii) where return of income is not required to be filed  under the 
Income Tax Ordinance, 2001 , the profit before tax ation or 
provision for taxation  as per accounts or four percent of the 
receipt as per the statement filed u nder section 115 of the 
Income Tax Ordinance, 2001, whichever is higher; and 
(l) “worker or employee” shall have the same meaning s as assigned to it 
in section 2 of the Punjab Industrial Relations Act 2010 (XIX of 2010). 
CHAPTER II 
CONSTITUTION OF WORKERS WELFARE FUND 
3. Constitution of the Fund.– (1) There shall be constituted for purposes of the 
Act, a Fund to be called the Punjab Workers Welfare Fund. 
 (2) The Fund shall consist of: 
(a) an initial contribution to be made by the Government; 
(b) the share of all assets  and funds received from the Workers  Welfare 
Fund as transferred and devolved by the Federal Government; 
(c) such moneys as may, from time to time, be paid by the establishments  
under section 4 and 5 of the Act; 
(d) the amount transferred to the Fund from time to time, under clause (d) 
of paragraph 4 of the scheme set out in the schedule to the Companies 
Profits (Workers’ Participation) Act 1968 (XII of 1968); 
(e)  voluntary contributions in the shape of money or building, land or other 
property made to it from time to time by the Government, a body 
corporate or by a person;  
(f)  income from the investments made and properties and assets acquired 
from out of the Fund; and 
(g)  proceeds of loans raised by the Governing Body. 
4. Mode of payment by, and recovery from  establishments.– (1) Every 
establishment or a part thereof , the total income of which in any year of account 
commencing on or  after the date of closing of account s on 30th of June or 31 st of 
December, as the case may be, is not less than rupees five hundred thousand, shall 
be liable to pay to the Fund in respect of that year a sum equal to  two percent of its 
total income. 
 (2) Every establishment liable under the Act shall pay the amount due from 
it by depositing in the Head of Account prescribed by the Governing Body within 
thirty days from the closing of accounts through the 3[Institution].  
                                                 
3Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025) , published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(a). 
  4[(2A) The Institution shall be given such collection charges, on the amount 
collected by it under the Act, as may be determined by the Governing Body.] 
 (3) The establishment shall on or before the specified date for filing of  
returns of income or a statement under  the Income Tax Ordinance, 2001  shall pay 
the amount due under subsection (2) and shall furnish the proof of payment along 
with a copy of income tax return to the 5[Institution]. 
 (4) The officer authorized by the 6[Institution] shall, by order in writing, 
determine the amount due  from an establishment under the Act if any, after taking 
into account the amount paid by the es tablishment in respect of th at year and the 
establishment shall pay the amount so determined  or any difference in respect 
thereof on or before the date specified in the order. 
 (5) Any chan ge by way of enhancement or reduction in the total income 
shall be given effect by adjustment of the amount due under this section. 
 (6) Any amount paid by an establishment under this section, on the basis 
of an order in  an appeal under the Act , to have been paid  in excess shall be 
refunded to the establishment or shall be adjusted against the liability under the Act 
in the succeeding year of account on the request of the employer. 
 (7) The payment made by an establishment t o the Fund under this section 
shall be treated as expenditure for purposes of assessment of income tax. 
 (8) Where assessment of income under the Act for any year is not finally 
made on or before the specified date, the establishment shall pay the amount as 
required under this section for that year on the basis of average of income assessed 
during the preceding two years. 
 (9) Difference of an amount paid under this section shall be adjusted on 
the finalization of assessment of income for a particular year. 
 (10) Where any establishment fails to pay willfully or otherwise the amount 
due from it under th e Act, it shall without prejudice to any other liability to which it 
may be subject under the Act or any other law for the time being in force, be liable to 
pay an amount equal to fifteen percent per annum of the amount due from it , in 
addition to the amount payable by such establishment. 
 (11) Where an industrial establishment is not found registered with the 
Federal Board of Revenue  established under the Federal Board of Revenue Act, 
2007 (IV of 20 07), the 7[Institution] shall issue a notice and a form of statement for  
purposes of assessing, determining and requiring the establishment to  make a 
payment under the Act. 
 (12) An establishment may file an appeal against any  order passed by an 
officer authorized under subsection (4) to the 8[Institution]. 
                                                 
4Inserted by the Punjab Workers Welfare Fund  (Amendment) Act 202 5 (XXXVIII of 2025) , published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(b). 
5Substituted for the word “Authority” by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025), published 
in the Punjab Gazette (Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(a). 
6Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 ibid. 
7Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 ibid. 
8Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025) , published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(c). 
9[(12A)  All appeals under the Act, pending before the appellate tribunal 
established under the Punjab Revenue Authority Act 2012 (XLIII of 2012), before the 
commencement of the Punjab Workers Welfare Fund (Amendment) Act 2025, shall 
stand transferred to the Institution.] 
 (13) If an establishment fails to make  a payment under this section, the 
amount payable shall be recovered by th e 10[Institution as arrears of land revenue in 
the manner specified in the Provincial Employee’s Social Security Ordinance, 1965 
(X of 1965)] and be deposited in the Head of Account of the Fund immediately 11[* *]. 
 (14) Where an  amount of Fund due from an establishment under the 
Workers Welfare Fund Ordinance, 1971 (XXXVI of 1971), for a particular income or 
year of account as the case may be, has not been paid , it shall be paid by such 
establishment under the Act.  
(15) If an establishment fails to make  a payment under the Act, the amount 
payable to the extent of previous five tax or income years  shall be determined and 
recovered under the provisions of the Act. 
5. Payment of additional  amount.– (1) Every establishment referred to in 
subsection (1) of section 4 shall, in addition to the amount payable by it under that 
subsection in  respect of any year of account, shall pay such amount as the 
Government may  determine on the recommendation of a  Committee constituted 
under subsection (2) thereafter in this section referred to as the Committee. 
 (2) For purposes of subsection (1), the Government may constitute one or 
more Committees, and where it constitutes more than one Committee, it shall specify 
the area or class of establishments in relation to which ea ch such Committee shall 
perform its functions. 
 (3) A Committee constituted under subsection (2) shall consist of a 
Chairman, who shall be an employee of the Government , and not more than three 
other members to be appointed by the Government of whom: 
(a) one shall be appointed from amongst the employers or, as the case 
may be, in the area or class of establishments in  relation to which 
the Committee is to perform its functions; and 
(b) one shall be appointed from amongst the workers or, as the case 
may be, in the area or class of establishments in  relation to which 
the Committee is to perform its functions. 
 (4) The Committee shall examine the financial and other circumstances of 
an establishment and make recommendations as to the amount, if any, to be paid by 
such establishment in addition to the amount payable by the establishment  under 
subsection (1) of section 4 of the Act. 
 (5) The Committee shall submit its recommendations to the Governing 
Body which shall forward the recommendations together with its own observations, if 
                                                 
9Inserted by the Punjab Workers Welfare Fund  (Amendment) Act 202 5 (XXXVIII of  2025), published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(d). 
10Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(e)(i). 
11Omitted by the Punjab Workers Welfare Fund  (Amendment) Act 202 5 (XXXVIII of 2025) , published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.3(e)(ii). 
any, to the Government  and the Government shall ta ke an appropriate action 
thereon. 
 (6) The Committee shall have the power to require any establishment to 
furnish such information as it may consider necessary for the performance of its 
functions and if an establishment fails to furnish the required information , the 
Committee shall make its recommendations on the basis  of such information as may 
be available to the Committee. 
 (7) The provisions of section 4 shall apply, mutatis mutandis, to an amount 
payable under subsection (1) of this section. 
6. Liability to be discharged by certain persons.– Any liability imposed on an 
establishment under the Act shall be deemed to be the liability of the person who is 
an employer in relation to an establishment. 
7. Purposes for which the Fund may be applied.– The Fund may be applied 
for: 
(a) financing of projects connected with the establishment of housing  
estates or  construction of residential accommodation and educational 
institutions for the workers and their families; 
(b) financing of other measures including education , training, skill 
development, apprenticeship, marriage grants, death grants  and talent 
scholarships for the welfare of the workers and their families; 
(c) expenditures in respect of the cost of management and  administration 
of the Fund; 
12[(ca) subject to its availability and approval of the Government, in such 
manner and to such extent as may be prescribed, purchase of 
essential commodities from such outlets as notified by the 
Government;] 
(d) repayment of loans raised by the Governing Body; and 
(e) investment in securities and other ventures for profit approved as 
approved by the Government. 
CHAPTER III 
GOVERNING BODY 
8. Constitution of the Governing Body.– (1) As soon as may be after the  
commencement of th e Act, the Government shall, by notification in the  official 
Gazette, constitute a Governing Body to whom shall be entrusted the  management 
and administration under the Act. 
(2) The Governing Body shall be a body corporate by the name notified by 
the Government, having perpetual succession and a common seal with power, 
subject to the provisions of the Act, to contract, acquire, hold and dispose of 
property, both movable and immovable, and shall by the said name sue or be sued. 
                                                 
12Inserted by the Punjab Workers Welfare Fund  (Amendment) Act 202 5 (XXXVIII of 2025) , published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.4. 
 (3) The Secretariat of the Governing Body shall be at such place as the 
Government may by notification in the Official Gazette, specify. 
 (4) All decisions of the Governing Body shall be expressed i n terms of the 
opinion of the majority of the members of the Governing Body present in a meeting 
and, in the event of an equality of votes, the Chairperson shall have a casting vote. 
 (5) The Government may issue directions to the Governing Body regarding 
policy matters including the matters relating to workers welfare schemes. 
 (6) A casual vacancy in the office of a member of the Governing Body 
shall be filled, as soon as may be, in the prescribed manner, by  nomination of 
another person and the person so nominated to fill such vacancy shall hold office for 
the unexpired term of his predecessor. 
 (7) The Governing Body shall consist of: 
(a) Secretary to the Government , Labour and Human Resource  
Department – Chairperson; 
(b) Commissioner, Provincial Employees’ Social Security Institute;  
member 
(c) Director General Labour Welfare, Punjab; member 
(d) Chairman Punjab Revenue Authority; member 
(e) Commissioner, Mines Labour Welfare; member 
(f) Secretary Punjab Workers Welfare Fund; member 
(g) one representative each not below the rank of an Additional Secretary 
from Finance, Industries, Commerce and Investment,  Communication 
and Works and School Education Departments of the Government ; 
members 
(h) three representatives of the employers; members 
(i) three representatives of the workers; and member  
(j) any other member co-opted by the Governing body. member 
 (8) The members mentioned under clause ( h) and ( i) of sub section (7 ) 
shall respectively be nominated by the Government in such manner as may be 
prescribed.  
 (9) The members of the Governing Body other than the official members 
shall hold office for a period of two years and on such terms and conditions as may 
be prescribed. 
 (10) No act or proceedings of the Governing Body shall be invalid by reason 
only of the existence of a vacancy in, o r defect in the constitution of  the Governing 
Body. 
 (11) The quorum for the meeting shall be at least two ex officio members 
and one member each from the employers and the employees. 
9. Secretary. (1) There shall be a Secretary of Punjab Workers Welfare Fund 
to be appointed by the Governing Body with prior approval of the Government. 
 (2) The Secretary shall perform such functions and shall exercise such 
powers as may be prescribed. 
(3) The Secretary shall be the Chief Executive Officer of the Fund. 
10. Appointment of the employees. (1) The employees of the Workers Welfare 
Board constituted under the Workers Welfare Ordinance, 1971  (XXXVI of 1971)  
other than those who are on deputation from other departments  and corporations, 
shall continue as employees under the Act. 
(2) The Governing Body may , with the prior approval of the Government, 
also appoint such other employees as it may consider necessary for the efficient 
performance and administration of the Fund. 
 (3) The Governing Body shall determine the terms and conditions of 
service of the employees with the prior approval of the Government. 
(4)  The Chairperson of the  Governing Body shall be the appointing 
authority for the employees. 
11. Governing Body to lay down procedure etc . As soon as may be after it s 
constitution, the Governing Body shall, with the previous approval of the 
Government, lay down the policy and regulations for efficient and effective 
administration of the Fund including the procedure for: 
(a) making applications for the Fund; 
(b) information to be furnished in respect of applications of the Fund; 
(c) the principles to be followed and priorities to be fixed in su ch 
applications; 
(d) incurring expenditure in respect of cost of management and 
administration of welfare schemes; 
(e) getting accounts of the Funds annually audited; 
(f) regulating other matters necessary for, connected with  or 
incidental to the discharge of its functions under the Act; and 
(g) extending and regulating workers welfare schemes including 
eligibility criteria and further administration of such schemes. 
12. Functions of the Governing Body. The functions of the Governing Body 
shall be to: 
(a) allocate the amounts of Fund  to an Authority of the Government and 
any body corporate for any of the purposes of the Act in the manner as 
may be prescribed; 
(b) sanction expenditure in respect of the administration and management 
of the Fund;  
(c) invest in the securities and term deposits with the commercial banks 
approved by the Government; 
(d) dispose of the moveable and immoveable property of the Fund with the 
prior approval of the Government; 
(e) raise loans and to take measures for discharging such loans; 
(f) invest in other ventures of profit with prior approval of the Government; 
(g) do or cause to be done all acts and things necessary or desirable for 
the proper administration of the Fund;  
(h) do or cause to be done all things ancillary or incidental to any of the 
aforesaid functions; and 
(i) give recommendation to  the Government to review the investment 
policy. 
13. The President , his powers and functions  of the President .–(1) The 
Minister for Labour and Human Resource, Punjab shall be the President of the Fund. 
 (2) The President of the Fund shall exercise such powers and perform 
such functions as may be prescribed. 
14. Money allocated from the Fund.– Any money allocated under the Act as 
grant-in-aid and shall vest in the Government, an Authority or body  corporate, to 
whom it is allocated, but it shall not be applied by the executing Authority to any 
purpose other than that for which it is allocated, or permitted by the Governing Body. 
15. Maintenance of books of account etc.– The Governing Body shall: 
(a) cause to be maintained such books of account as may be prescribed; 
(b) cause to be prepared in the prescribed manner an annual statement of 
account; 
(c) cause the accounts of the Fund to be audited annually by the Director 
General Audit, Punjab or an audi tor who is a chartered accountant 
within the meaning of  the Chartered Accountants Ordinance,  1961 (X 
of 1961); and 
(d) submit to the Government , the statement referred to in clause (b)  
together with the report of the auditor thereon. 
CHAPTER IV 
MISCELLANEOUS  
16. Delegation of powers.– The Governing Body may direct in writing that all or 
any of its  powers and functions under section 1 2 may, subject to such limitations,  
restrictions or conditions, if any, as may be imposed by it from time to time,  be also 
exercised or performed by the Secretary. 
17. Power to make rules.– (1) The Government may, by notification in the official 
Gazette, make rules for carrying out the purposes of the Act. 
 (2) In particular and without prejudice to the generality of the foregoing 
power, such rules may provide for all or any of the following matters:  
(a) terms and conditions of appointment of the members of  the 
Governing Body; 
(b) manner in which the Governing Body shall conduct its  business, 
including the number of members required to form a quorum at  
meetings thereof;  
(c) books of account to be maintained by the Fund and the form of its 
statements of account; 
(d) procedure to be followed  for determination of utilization of funds ; 
and 
(e) formulation of investment p olicy, constitution of investment 
Committee and its terms of references. 
18. Application of other laws.– The provisions of  the 13[Provincial Employees 
Social Security Ordinance, 1965 (X of 1965) and the rules and regulations ] and the 
rules made thereunder  in the matters of charge, additional charge , recovery and 
appeals shall mutatis mutandis apply to the collection and pa yment of contribution 
under the Act in so far as they relate to: 
(a) manner and mode of payment; 
(b) registration or signup and de-registration or de-signup; 
(c) keeping and calling of records and audit; 
(d) assessment, adjudication and enforcement; 
(e) penalties, prosecution and appeals; and 
(f) all other allied and ancillary matters; 
19. Removal of d ifficulties.– (1) The Government may pass such order for 
removing any difficulty or for bringing the provisions of th e Act into effective 
operation as it may deem fit. 
(2) The power under this section shall not be exercised after the expiry of 
three years from the commencement of the Act. 
20. Bar of suits, prosecution and other legal proceedings. - (1) No suit shall 
be brought in any Civil C ourt to set aside or modify any order passed, any 
assessment made, any penalty or default surcharge imposed or collection of any 
fund made under the Act.  
(2) No suit, prosecution or other legal proceeding shall lie against the 
Government or against any public servant in respect of any order passed in good 
faith under the Act.  
(3) Notwithstanding anything in any other law  for the time being in force , 
no investigation or inquiry shall be undertaken or initiated by any authority owned or 
controlled by the Government  against any officer or official for anything done in his 
official capacity under the Act, except with the permission of the competent Authority. 
21. Exemption from taxes.– (1) Notwithstanding anything contained in any other 
law for the time being in force , the Government may, by order in writing, exempt the 
                                                 
13Substituted by the Punjab Workers Welfare Fund (Amendment) Act 2025 (XXXVIII of 2025), published in the Punjab Gazette 
(Extraordinary), dated: 30 May 2025, pp. 4771-4772, s.5. 
Fund from any tax, duty, or rate  leviable by the Government or by a local authority 
under the control of the Government. 
 (2) The Government may request the Federal Government to exempt the 
income of the Fund including capital gains from the income tax  under the provisions 
of the Income Tax Ordinance, 2001. 
22. Repeal and s aving.– (1) The  Workers’ Welfare Fund Ordinance, 1971 
(XXXVI of 1971) is hereby repealed. 
(2) Notwithstanding the repeal of the Workers’ Welfare Fund Ordinance, 
1971 (XXXVI of 1971), all orders, rules or r egulations made, notifications issued, 
actions and proceeding taken under the repealed Ordinance shall continue to remain 
in force until altered amended or repealed under the provisions of the Act.