Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Karachi, 74700
Phone: (021)32727266
(021)32729770
Email: Info@smyaqoob.com
Website: www.smyaqoob.com
Date: 06-02-2025
Circular Number: C-218
Raising of Social Security Contribution and Coverage Limit
in the Province of Balochistan through amendment dated 01-01-2025
- The minimum wage of unskilled workers had been raised to Rs.37,000/- per month Rs. 1423/= per day w.e.f. 01-07-2024 as per the provisions of the Balochistan Minimum Wages Act, 2021.
- The Balochistan Employees’ Social Security Institution Act, 2022 has been amended by The Balochistan Employees’ Social Security Institution (Amendment) Act, 2024 Act No. VI of 2025, where in the word “fifteen” has been changed to “fifty”. This has raised the coverage limit from 15% of the Minimum Wages to 50% hence the lower wage limit shall be the prevailing minimum wage (Rs. 37,000/=) while the upper wage limit (coverage limit) shall be the minimum wage plus 50% (Rs. 55,500/=)
- By virtue of the new Minimum Wages and the Amendment in The Balochistan Employees’ Social Security Institution Act, 2022, now 6% Contribution shall be paid on minimum wages of Rs. 37,000/= p.m. and coverage limit shall be Rs. 55,500/= p.m. It means that now the employees whose wages are up to Rs. 55,500/= per month are covered, but contribution shall be paid on the Minimum Wages, i.e., Rs. 37,000/= 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. 55,500/= p.m., since prior to the said amendment shall continue to be uncovered by the Balochistan Employees’ Social Security Act, 2022. Any employee who is appointed on wages above Rs. 55,500/= per month after the amendment in Minimum Wages shall also not be covered by the Balochistan Employees’ Social Security Act, 2022.
- The arrears of contribution under the new wage coverage limit shall be payable to the Social Security Institution from 01-01-2025. For further details if required, you may consult your labour laws consultant.
For M/s S. M. Yaqoob
Industrial Relations Advisors
Labour & Management Laws Consultants
