Raising of Social Security Contribution and Coverage Limit in the Province of Balochistan (on Rs. 32000/-)

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Date: 08-09-2023

Circular Number: C-212

Raising of Social Security Contribution and Coverage

Limit in the Province of Balochistan (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  Balochistan Minimum Wages Act, 2021. 

2- The above amendment to the Minimum Wages will also raise the contribution  and coverage limit of Social Security as provided by section 75 of the Balochistan Employees’ Social Security Act, 2022 indicating that the lower  coverage limit shall be the prevailing minimum wage (Rs. 32,000) while the  upper coverage limit shall be the minimum wage plus 15% (Rs. 36,800) 

3- By virtue of the new Minimum Wages, now 6% Contribution shall be paid  on minimum wages of Rs. 32,000/= p.m. and coverage limit shall be Rs.  36,800/= p.m. It means that now the employees whose wages are up to Rs.  36,800/= 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. 36,800/= p.m., since  prior to the said amendment in Minimum Wages shall continue to be  uncovered by the Balochistan Employees’ Social Security Act, 2022. Any  employee who is appointed on wages above Rs. 36,800/= 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