Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-203
Balochistan Employee’s Social Security Act, 2022
The Balochistan Assembly has passed “The Balochistan Employees Social Security Act, 2022”, assented by the Governor on 03-10-2022 and notified on 12-10-2022. The Act is almost same as the Sindh Social Security Act, 2016. Its salient features are given as under: ––
- We are starting this circular from section 75 & 20 due to its importance and proper understanding. In this section two types of wage limits are explained as under: –
- The lower wage limit…… Section 75(2) … Equivalent to the Minimum Wages under Balochistan Minimum Wages Act, 2021 which is currently 25,000 p.m.
- The upper wage limit …… Section 75(3) …. Minimum Wages under the Balochistan Minimum Wages Act, 2021 plus 15% of the minimum wages (currently 25000 + 3750 = Rs. 28,750).
Please note that whenever the minimum wages increase, the upper wage and lower wage limit shall also be increased.
- Contribution (section 20 (1) of the Act) … 6% contribution is to be paid on the wages under the Balochistan Minimum Wages Act, 2021 (currently 6% on Rs. 25000/- per month). Proviso for contribution in section 20(1) means that no contribution shall be payable on wage in excess of the upper wage limit determined u/s 75. The whole exercise is to get the maximum contribution but without increasing any benefits to the employees.
- Section 2(10) (e) (initial coverage wage limit) Any person employed on wages exceeding upper wage limit (currently on Rs. 28,750 per month salary) shall not be covered as employee under the Act. The proviso under section 2(10) (e) means that an employee on wages exceeding the upper wage limit determined u/s. 75 shall not cease to be an employee. It simply means that an employee once covered under the Act shall remain covered even if his wages exceed the coverage limit (upper wage limit).
- Section 5 (Governing Body) To represent the employers (three persons) and employees (three persons), one woman for each category is necessary. The organization of the Institution, its powers and functions of the governing body from section 3 to 19 have been improved.
- Section 21 (Self-Assessment Scheme) has been slightly modified and now 6% contribution shall be on the lower wage limit per month per secured employee and Rs. 60/= per month per employee for the share of the employee.
- Section 23, checking of records for the normal scheme and under the self-assessment scheme are same as the Sindh Social Security Act, 2016.
- The Benefits from section 36 to 58 are the same as Social Security Ordinance, 1965 or Sindh Social Security, Act, 2016 except an addition in section 39(2) in medical care that a secured woman shall be entitled to parental confinement and post-natal care, in the manner and to the extent provided in the Regulations.
- Section 61(2) provides provision to deposit 25% of the contribution along-with application made before the Commissioner Social Security which is difficult to meet by the smaller employers besides it could also be misused against the employers.
- Section 64 has the provision for appeal before the Social Security Court and section 68 for the second appeal before the High Court.
You are advised to carefully peruse the provisions of amendments and may consult your Labour Law Consultant on the matter.
For M/s S.M. Yaqoob
Industrial Relations Advisers
& Labour Laws Consultants