KARACHI, Aug 31: The federal government has introduced a new self-assessment scheme, amending the Employees Old-Age Benefit Act 1976 and allowing the employers to opt for the self-assessment and declare the number of their employees.

Under the scheme, the officers of the Employees Old-Age Benefit Institution will not inquire into or inspect any establishment which has opted for the scheme for two years from the date of submission of application.

The new scheme has been introduced through insertion of a new section 12-A. An employer may opt and apply for self-assessment scheme by declaring the number of employees and their particulars in form PR-10. The employers opting for the scheme shall not decrease the amount of contribution or number of insured persons during the period of two years.

After expiry of the two years, if the employer wished to continue the scheme, one time checking of record shall be done by the officer not below the rank of deputy-director of the institution and in regular scheme one in a year with 15 days prior notice, by an assistant-director.

The law has provided employees’ contribution through @ Rs20 per month w.e.f. July 2001.

As per EOBI (contribution) rules, the employers have been empowered to deduct the contribution from the wages of the insured persons. However, in view of the Act of 1976, the employers were reluctant to deduct the amount of contribution from the wages of the employees. To facilitate the employers to deduct employees’ share of contribution an amendment in the law in section 9 as well as section 37 has been made.

Now only the employers’ share can not been deducted, however, there is no restriction on deduction of employees’ share of contribution.—PPI/APP