According to the amendment in Sindh Employees Social Security Act, 2016 , new lower and upper wage limit has been set on which the contribution will be paid.
The amending Act was Sindh Employees' Social Security (Amendment) Act, 2018, issued in May of this year (see text in May-June issue of EW). The amendment does not need anymore to amend the main statute in section 75 whenever the minimum wage and upper wage limit used to be revised. After years of fumbling to set the upper wage limit which was always challenged by employers, Social Security Institution appeared to have finally resolved the problem of wage limits.
The section 20 of the amending Act, 2018 introduces new definitions of Lower Wage Limit and Upper Wage Limit in section 75 for social security contributions.
20. Amendment of section 75 of Sindh Act No. VI of 2016.--
In the said Act, in section 75, the following shall be substituted:-
"75. Determination of wage limits.
(1) For the purpose of determining the wage limit so specified for payment of social security compensation and rates of benefits payable under this Act, a lower wage limit and an upper wage limit shall be defined as sub-section (2) and (3).
(2) The lower wage limit shall be equivalent to the minimum wages determined by Government under the Sindh Minimum Wages Act, 2015 (Sindh Act No. VIII of 2016) prevailing at the time of paying contributions payable under this Act.
(3) The upper wage limit shall be five thousand rupees plus the minimum wages determined by Government under Sindh Minimum Wages Act, 2015 (Sindh Act No. VIII of 2016) at the time of paying contributions payable under this Act.
In other words, the wage limits in normal or regular scheme, the employers' contributions are as follows:
Lower Wage Limit = Minimum Wages for Unskilled Worker in Sindh, prevalent is Rs. 16,200 from July 1, 2018.
Upper Wage Limit = Lower Wage Limit plus Rs. 5000.
Rs.16,200 + 5000 = Rs. 21,200 pm from 1-7-18.
No contribution is required by worker under regular scheme as per law.
Amendment in Self-assessment scheme:
The section 4(vi) of the amending Act, 2018 also revised the contributions for Self-assessment scheme:
"(27) "Self-assessment scheme" means a scheme of social security benefits, effective from the 1st of July 2001, with no intervention through checking by any staff member of the Institution, in respect of employees secured under this Act and the employer undertakes to pay a contribution in respect of them at the...