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Supreme Court (SC) on Tuesday ordered the companies to pay six percent on minimum wages of employees to Sindh Employees Social Security Institution (SESSI) as the social security contribution under the existing law, effective from April 12, 2016. At Karachi Registry, a two member bench of SC comprised of Justice Faisal Arab and Justice Sajjad Ali Shah issued the orders in a petition of several companies represented by Employers Federation of Pakistan (EPF) through Zaheer Minhas Advocate.

On the plea of companies that they had contributed much more than six percent on the minimum wages prevailing in different years, court ordered for adjustment of extra amount charged so far. According to counsel, upon the advent of 18th Amendment in the Constitution in 2010 when the minimum wage specified under Minimum Wage Ordinance 1969 exceeded Rs 10,000 per month, the Sindh Social Security Institution started demanding and collecting contribution at the rate of minimum wages varying from time to time.

Sindh High Court (SHC) had ruled in favour of SESSI that contribution is payable as per minimum wages prevailing in different years. The decision of SHC was challenged in SC which approved the plea of petitioner and directed for six percent social security contribution on minimum wage, effective from April 12, 2016. Meanwhile, bench sought the reply from Pakistan International Airlines (PIA) on the contempt of court petition of Raja Pervez Iqbal and others for failure of airline to comply with the court orders for regularization of their services.

Petitioners submitted that apex court had ordered in August 2018 for regularization of their services, however, court orders are yet to be implemented in this regard. PIA counsel Khalid Mahmood Siddiqui Advocate contended that there is ban on appointments and regularization of contractual employment in the airline on court orders. Court directed the counsel to submit the reply in the next hearing of the case.

Copyright Business Recorder, 2019


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