Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-153
The Order dated 24-10-2014 of the Lahore High Court
Suspending the increase in the Social Security contribution
on wages upto Rs. 18000/=p.m. or Rs.750/=per day in Punjab
1- Using arbitrarily powers under section 71 of the P.E. Social Security Ordinance, 1965 the Punjab Govt vide it’s notification dated 12-08-2014 has increased the wage limit for contribution on wages upto Rs.18000/= p.m. or Rs.750/= per day and it’s legality has been challenged in the Const. Pet. No. 28332/2014 before the Lahore High Court, which has been admitted for regular hearing along with a similar Const. Pet. No. 27503/2014 suspending the said notification dated 12-08-2014 and ordered to pay contribution to the Institution as before the said amendment dated 12-08-2014.
2- The petition and order thereon of the Lahore High Court would have it’s effect and consequences in the other provinces and similarly challenging amendment/notification by establishments of the other provinces having strong legal position in their favour in view of the above orders of the Lahore High Court.
3- It may be noted that a similar notification dated 28-10-2013 of the Sindh Govt raising wage limit to Rs. 15000/= p.m. for contribution has been challenged in the Const.No.D-1036/2014 filed by Employers Federation of Pakistan in the Sindh High Court which has restrained vide it’s order dated 13-03-2014 from paying contribution on wages upto Rs. 15000/= p.m. (Ref. our Circular No. C-145 dated 20-03-2014)
Pleased note the above and act accordingly.
For M/s S. M. Yaqoob