Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-211
Raising of Social Security Contribution and Coverage
Limit in the Province of KPK (on Rs. 32000/-)
1- The minimum wage of unskilled workers has been raised to Rs.32,000/- per month Rs. 1231/= per day w.e.f. 01-07-2023 as per the provisions of the Khyber Pakhtunkhwa Minimum Wages Act, 2013.
2- The above amendment to the Minimum Wages will also raise the contribution and coverage limit of Social Security as provided by section 2 (k)(e) of the Khyber Pakhtunkhwa Employees’ Social Security Act, 2021 indicating that an employee whose wages are above 60% shall be covered under the act.
3- By virtue of the new Minimum Wages, now the 6% contribution shall be paid on minimum wages of Rs. 32,000/= p.m. and the coverage limit shall be Rs. 51,200/= p.m. It means that now the employees whose wages are up to Rs. 51,200/= per month are covered, but contribution shall be paid on the Minimum Wages, i.e., Rs. 32,000/= 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.
4- The employees who are paid monthly wages above Rs. 51,200/= p.m., since prior to the said amendment in Minimum Wages shall continue to be uncovered by the Khyber Pakhtunkhwa Employees’ Social Security Act, 2021. Any employee who is appointed on wages above Rs. 51,200/= per month after the amendment in Minimum Wages shall also not be covered by the Khyber Pakhtunkhwa Employees’ Social Security Act, 2021.
5- The contribution shall be payable to the Social Security Institution from 01- 07-2023.
For further details if required, you may consult your labour laws consultant.
For M/s S. M. Yaqoob
Industrial Relations Advisors
& Labour Laws Consultants