1. Every industrial and commercial establishment operating in ICT limits is required to get itself registered with IESSI to secure its eligible employees for the benefits of the Soial Security Scheme admisible to them under the Provincial Employees Social Security Ordinance, 1965. Accordingly, the Social Security Scheme is lawfully applicable to all such establishments by virtue of the notification regarding constitution of IESSI, as well as the provisions of the aforesaid Ordinance.
2. The Social Security Scheme intends to protect employee or worker socially in the event of sickness, injury, disablement or upon his death and other affairs of life ancillary thereto. Apart from provision of the medical care facilities, the Ordinance extends certain other cash benefit awards, for instance sickness benefit, maternity benefit, disablement gratuity, disablement partial & total pension, survivors’ pension, iddat benefit, death grant as admissible and extendable to the workers and their family members.
Registration & Contribution Collection
1. The social Security Scheme is financed though the monthly contribution, as per law, received from the establishments registered with IESSI. The Recovery Section is responsible to collect the monthly contribution. For the purpose, establishments identified by the field staff as well as the establishments approach IESSI, are registered.
2. In order to avail the benefits under the scheme the registered establishment is required to get all its eligible workers/employees secured through their registration with IESSI from the inception date of IESSI i.e. 01-01-2013 or the date of commencement of the business/work, whichever is later. An establishment has to maintain the record of each secured worker and submit to IESSI such returns as per prescribed format. The format of the prescribed contribution schedule and the Declaration Form are available on the web.
3. The registered establishment is bound by law to pay the monthly social Security contribution at the prescribed rate of 6% of the wages/salaries in respect of its employees who fall under the given wage brackets, revised every year. The contribution amount will be paid by the employer and no deduction in this respect will be made from employees’ salary.
4. In the case of construction work the owner of the building shall guarantee the payment of contributions by the contractor. In the case of works executed or undertakings carried on the behalf of the state by a contractor or licensee, The competent public authority shall, before final settlement of the claims of the contractor or licensee arising out of the contract, require the production of a certificate from the IESSI showing that the necessary contributions have been paid, and in default of such certificate it shall deduct from the amount otherwise payable in settlement of such claim, the appropriate amount of the contributions payable, and pay such amount direct to the IESSI.
5. It is obligatory on the part of the establishments to make the monthly contribution payment before the close of the following month. In case, any establishment fails to make the payment within due date, increase up-to fifty percent on the actual amount will be charged as per law.
6. In the event of failure in clearance of default on account of monthly contribution or increase, recovery is effected through legal action as per provisions of the law.
Inspection Of Records
The law allows the officials of the IESSI to check the employer`s record/books at any reasonable time. The officials can examine their accounts, books and other documents relating to the employment of persons and payment of wages, or any information, as they may consider necessary for verification.