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M/s. S.M. Yaqoob††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Fax: 32729770††††††††††††††††††††††



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Circular No.†† C-151†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Date: -30-12-2014


Sub:Revision of Wage limit for contribution under the P.E.

Social Security Social Security Ordinance, 1965 (in Baluchistan)


1.†††††††† By the Notification dated 10-12-2014, the Govt. of Baluchistan using its power under Section 71 of the Ordinance has raised the wage limit for payment of contribution provided by 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 the employer.

2.†††††††† The Notification dated 10-12-2014 has raised the upper limit of coverage of employees from Rs. 10,000/= p.m. to Rs.15000/= p.m. wages asprovided by Section 2(8)(f) of the PESS Ordinance, 1965 but as provided by Section 20 of the Ordinance, contributionpayable for the employees covered by the Ordinance still remains 6% of wages payable to the employees not exceeding Rs. 10,000/= p.m. or Rs.400/= per day and no contribution is still payable on part of the wages in excess of the said wage limit.

3.†††††††† Any employee once covered by the scheme remains covered even if his wage later on exceeds the above wage limit of Rs. 15000/= p.m. but contribution payable for such employee would still be payable at the rate of 6% of the wages subject the above limit of Rs. 10,000/= p.m. or Rs. 400/= per day wage payable to the employee.

4.††††† Please note that a similar Notification dated 28-10-2013 issued by the Govt. of Sindh. was challenged in the Sindh High Court, Karachi in the Const. Petition No.D-1036/2014 filed by Employers Federation of Pakistan as a representative 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.

5.†††††††† The institution is always eager to get more contributions but reluctant to increase the benefits to the employees.

6.†††††††† The above Notification shall apply from the date of itís publication in the Baluchistan Govt. Gazette. There is no change in the Self Assessment Scheme provided by Section 20-A of the Ordinance.


†††††† For M/s S.M. Yaqoob

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