ISLAMABAD, June 12: The government has introduced various amendments in the social security ordinance aimed at providing medical care and other facilities to employees appointed on monthly wages.

At present the persons employed on wages exceeding Rs5000 per month are exempted from purview of the law of Provincial Employees’ Social Security Ordinance 1965.

With the enhancement of minimum wages all workers will be out from the scheme.

To protect interest of employees, the government amended the law so that employees appointed on monthly wages up to Rs10,000 will be included in the scheme and such employees as well as their dependents will be provided medical care and other benefits provided under the Ordinance.

Since by increase of minimum wages to the tune of Rs6000, the wage limit for coverage under the social security scheme is increased from Rs5000 to Rs10,000, to give relief to the employers and reduce their cost of compliance, the contribution has been reduced from 7 per cent to 6 per cent of the wages.

Through an amendment in provincial employees’ security ordinance, government included all workers drawing wages up to Rs10, 000 per month under the Social Security Ordinance. And reduced rate of contribution from 7 per cent to 6 per cent.

Through an amendment in West Pakistan Industrial and commercial employment (standing orders) ordinance, 1968 government allowed to pay subsistence allowance equal to the wages of the workers.

Through an amendment in Workers Welfare Fund Ordinance 1971 (ordinance no.xxxvi of 1971), government included workers of commercial and services sector in the schemes under the Workers Welfare Fund.

By introducing amendments in the Employees’ Old Age Benefit Act, 1976 (xiv of 1976), it has been proposed to include the employees of all such establishments, which have five or more employees in the pension scheme, reduce rate of contribution payable by the employer from 6 per cent to 5 per cent under the Employees’ Old Age Benefit Act, 1976; include employees of Banks and Banking Companies in the pension scheme under the Act and to increase minimum pension from Rs1500 per month to Rs2000 per month.

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