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

November 4, 2023

Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Karachi, 74700
Phone: (021)32727266
(021)32729770
Email: Info@smyaqoob.com
Website: www.smyaqoob.com

Date: 04-11-2023

Circular Number: C-214

Raising of Social Security Contribution and Coverage
Limit in the Province of Sindh (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 Sindh Minimum Wages Act, 2015.

 

  1. The above amendment to the Minimum Wages will also raise the contribution and coverage limit of Social Security as provided by section 2 (9)(e) of the Sindh Employees’ Social Security Act, 2016 indicating that  an employee whose wages are under the coverage limit shall be covered under the act with the newly prescribed minimum wage being the lower limit.

 

  1. By virtue of the new Minimum Wages, now the 6% contribution shall be paid on minimum wages of 32,000/= p.m. and the coverage limit shall be Rs. 37,000/= p.m. It means that now the employees whose wages are up to Rs. 37,000/= 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.

 

  1. The employees who are paid monthly wages above Rs. 37,000/= p.m., since prior to the said amendment in Minimum Wages shall continue to be  uncovered by the Sindh Employees’ Social Security Act,  Any employee who is appointed on wages above Rs. 37,000/= per  month after the amendment in Minimum Wages shall also not be covered by  the Sindh Employees’ Social Security Act, 2016.

 

  1. 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

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