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Management & Labour Laws 39,
Circular No. C –145 Date: - 20-03-2014
Sub: Stay Order by the Sindh High Court on revision of Wage
limit of employers contribution under the P.E.S.S.O. 1965
By the Notification dated 28-10-2013, the Govt. of Sindh under Section 71 of the Ordinance has raised the wage limit for payment of contribution provided by the Section 2(8)(f) of the Provincial Employee Social Security Ordinance, 1965 from Rs. 10,000/= to Rs. 15,000/= p.m. or from Rs. 400/= per day to Rs. 600/= per day for payment of contribution under the Ordinance by employers but as provided by Section 20 of the Ordinance, contribution payable for the employees covered by the Ordinance remains at 6% of wages payable to the employees not exceeding Rs. 10,000/= p.m.
The said Notification was challenged in the Sindh High Court, Karachi in the Const. Petition No.D-1036/2014 filed by Employers Federation of Pakistan as a representive body of employers and other 57 employers. The D.B of the Sindh High Court vide order dated 13-3-2014 restrained the Respondents (including Sindh Employees Social Security Institution) not to take coercive action against the Petitioners in term of said Notification dated 28-10-2013. Since the Order dated 13-3-2014 shall apply to all employers through the said Federation including the 57 employees as co-petitioners till it remains in the field.
The employers should continue to pay contribution on wages of employees as before and not on the changed wage limit of Rs.15000/= p.m. notified by the Sindh Govt.
For M/s S.M. Yaqoob
Industrial Relations Advisers
& Labour Laws Consultants