Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-201
Raising of Social Security Contribution and Coverage Limit in Province of Sindh (on Rs. 25000/-)
- The minimum wage of unskilled workers has been raised to 25,000/- per month Rs. 962/= per day w.e.f. 01-06-2022 as per the provisions of the Sindh Minimum Wages Act, 2015 (see our circular Minimum wage of Rs. 25,000/= p.m. for Unskilled adult and Juvenile Workers in Sindh)
- Above amendment in the Minimum Wages will also raise the contribution and coverage limit of SESSI as per amended section 75 by the Sindh Employees’ Social Security (Amendment) Act, 2018 notified in the Sindh Govt. Gazette dated 07-07-2022 made applicable from 01-06-2022.
- By virtue of the new Minimum Wages, now the lower wage limit shall be of Rs. 25,000/= p.m. and upper-wage limit shall be of Rs. 30,000/= p.m. It means that now the employees whose wages are up to 30,000/= per month are covered, but contribution shall be paid on the Minimum Wages i.e., Rs. 25,000/= per month per employee. Please note that the Contribution of 6% on the Minimum Wages is not fixed, but varies on the wages actually earned by the employee.
- The employees who are paid monthly wages above Rs. 30,000/= p.m., since prior to the said amendment in Minimum Wages shall continue to be uncovered by the Sindh Employees’ Social Security Act, 2016. Any employee who is appointed on wages above Rs. 30,000/= per month after the amendment in Minimum Wages shall also not be covered by the Sindh Employees’ Social Security Act, 2016.
- The contribution shall be payable to the Social Security Institution from 01-06-2022.
For further details if required, you may consult your labour laws consultant.
For M/s S. M. Yaqoob
Industrial Relations advisors
& Labour Laws Consultants