Raising of Social Security Contribution and Coverage Limit in the Province of Balochistan through amendment dated 01-01-2025

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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

 

  1. 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.
  2. 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/=) 
  1. 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.

  2. 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.

  3. 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