THE PROVINCIAL EMPLOYEES’ SOCIAL SECURITY ORDINANCE, 1965

Page 1 of 32

THE PROVINCIAL EMPLOYEES’ SOCIAL SECURITY

ORDINANCE, 1965

C ONTENTS

CHAPTER I

PRELIMINARY

CHAPTER II

ORGANISATION

Page 2 of 32

CHAPTER III

CONTRIBUTIONS

revenue.

employer.

CHAPTER IV

FINANCE AND AUDIT

CHAPTER V

BENEFITS

Page 3 of 32

38 - A. Medical care of dependents, etc.

pension.

47 - A Establishment of medical and other institutions.

5 0. Exemption from stamp duty.

54 - A. Extent of benefits, etc.

CHAPTER V - A

MEDICAL TREATMENT OF DOMESTIC SERVANTS

55 - A. Medical treatment of domestic servants.

CHAPTER VI

DETERMINATION OF QUESTIONS AND CLAIMS

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CHAPTER VII

OFFENCES AND PENALTIES

CHAPTER VIII

MISCELLANEOUS

Page 5 of 32

Page 6 of 32

1
THE
2
[ PROVINCIAL] EMPLOYEES’ SOCIAL

SECURITY ORDINANCE, 1965

(W.P. Ordinance X of 1965)

[17
th
May , 1965]

An Ordinance to introduce a scheme of Social Security for providing benefits to certain employees or

their dependents in the event of sickness, maternity, employment, injury or death and for matters

ancillary thereto .

Preamble

WHEREAS it is expedient to introduce a scheme of Social Security for providing benefits to

certain employees or their dependents in the event of sickness, maternity, employment, injury or death,

and for matters ancillary thereto;

AND WHEREAS the Provincial Assembly of West Pakistan is not in session and the Governor

of West Pakistan is satisfied that circumstances exist which render immediate legislation necessary;

Now, THEREFORE, in exercise of the powers conferred on him by clause (1) of Article

79 of the Constitution, the Governor of West Pakistan is pleased to make and promulgate th e following

Ordinance: -

CHAPTER I

PRELIMINARY

(1) This Ordinance may be called

the
2
[Provincial] Employees’ Social Security Ordinance, 1965.

(2) It extends to the w hole of
3
[Pakistan]

(3) It shall come into force at once, but shall apply only to such areas, classes of persons,

industries or establishments, from such date or dates, and with regard to the provision of such benefits

as Government may, by notification, specify in this behalf.

In this Ordinance, unless the context otherwise requires, the following

expressions shall have the meanings hereby respectively assigned to them, that is to say –

(1) “appointed day” means in relation to any area, class of persons, industries, establishments

or benefits, the day on which this Ordinance is applied to such area or in respect of such class of

persons, industries, establishments or benefits;

(2) “Chairman” means the Chairman of the Governing Body;

(3) “Commissioner” means the Commissioner of the institution;

1
This Ordinance was promulgated by the Governor of West Pakistan on 14th May, 1965; approved by the Provincial Assembly of Wes t Pakistan on 8th

July, 1965, under clause (3) of Article 79 of the Constitution of the Islamic Republic of Pakistan (1962); and, published in the West Pakistan Gazette

(Extrao rdinary), dated 8th July, 1965, pages 3579 - 3610.

2
Substituted by P.O. 4 of 1975 , for “West Pakistan”.

3
Substituted ibid ., for “West Pakistan, except the Tribal Areas”.

Page 7 of 32

(4) “confinement” means labour resulting in the issue of a living child, or labour after twenty -

six weeks of pregnancy resulting in the issue of a child, whether alive or dead;

(5) “contribution” means the sum of money payable to t he institution by an employer in respect

of an employe e,
1
[* * *] in accordance with the provisions of this Ordinance;

(6) “dependent” means the wife or wives or a needy invalid husband
2
[, dependent parents] and

any unmarrie d children under the age of
2
[twenty - one] years dependent upon the secured person
2
[:]

2
[Provided that such age limit shall not apply to unmarried dependent daughters;]

(7) “disablement” means a condition caused by an employment injury which, as certified by a

medical practitioner a uthorised for the purpose as provided in the regulations, has permanently reduced

or is likely to reduce permanently a secured person’s earning capacity, and disablement shall be

“minor” where the loss of earning capacity
3
[is less than twenty per centum] , “partial” where the loss

of earning capacity ranges from twenty - one per centum to sixty - six per centum, and “total” where the

loss of earning capacity is in excess of sixty - six per centum;

4
[(7 - a ) “domestic servant” means any person working whole - time in connection with the work

of any household for any consideration, whether in cash or in kind];

5
[(8) “employee” means any person employed, whether directly or through any other person

for wages or otherwise to do any skilled or unskilled, supervisory, c lerical, manual or other work in,

or in connection with the affairs of an industry or establishment, under a contract of service or

apprenticeship, whether written or oral, expressed o r implied but does not include –– ]

(a) persons in the service of the State, including members of the Armed Forces,

Police Force and Railway servants;

(b) persons employed in any undertaking under the control of any Defence

Organization or Railway Administration;

(c) persons in the service of a local council, a municipal committee, a cantonment

board or any other local authority;

(d) any person in the service of his father, mother, wife, son or daughter, or of her

husband;

(e)
4
[* * * * * * *]

(f) any person employed on wages exceeding
6
[
7
[ten] thousand] rupee s per

mensem
2
[:]

1
The words “and includes any amount payable by or on behalf of the employee” deleted by the Ordinance IX of 1972.

2
Inserted , Subs. and Added by the Labour Laws (Am endment) Act, 1994 (Act No. XI of 1994).

3
Substituted by W.P . Ord. XLVII of 1969, for the words “ranges from five per centum to twenty per centum”.

4
Ins. & Deleted by Ord. IX of 1972.

5
Subs. by Ord. IV of 2002, s.2.

6
Subs. by Ord. No. LIII of 2001, s.2+Sch. Which previously amended by Act No. XI of 1994, s.2, for “t hree thousand” .

7
Subs. by Act No. I of 2008, s.3 (w.e.f . 1 - 7 - 2008) .

Page 8 of 32

1
[Provided that an employee shall not cease to be an employee for the reason that his

monthly wages ex ceed
2
[
3
[ten] thousand] rupees.]

(9) “employer” means in the case of works executed or undertakings carried on by any

contractor or licensee on behalf of the State, the contractor or licensee working for the State, and in

every other case the owner of the industry, business, undertaking or establishment in which an

employee works and incl udes any agent, manager or representative of the owner;

(10) “employment injury” means a personal injury to a secured person caused by an accident

or by such occupational disease as may be specified in the regulations, arising out of and in the course

of his employment;

(11) “establishment” means an organisation, whether industrial, commercial, agricultural or

otherwise;

(12) “Fund” means the Employees’ Social Security Fund set up under section 3;

(13) “Governing Body” means the Governing Body of the in stitution;

(14) “Government” means the
4
[Feder al or a ]
5
[Provincial Government ]

(15) “industry” means any business, trade, undertaking, manufacture or calling of employers,

and includes any calling, service, employment, handicraft, industrial occupation or avocation of

workmen;

(16) “Institution” means the Employees’ Social Security institution established under section

3;

(17) “Medical Advisor” means the Medical Advisor appointed under section 15;

(18) “medical board” means a board consisting of two or more medical practitioners, appointed

under section 17;

(19) “medical practitioner” means a person practising medicine and having such qualifications

as may be provided in the regulations;

(20) “Member” means a member of the Governing Body;

(21) “prescribed” means prescribed by rules;

(22) “registered Trade Union” means a Trade Union registered under the Trade Unions Act,

1926 (XVI of 1926);

(23) “regulations” means regulations made under this Ordinance;

(24) “rules” means rules made under this Ordinance;

(25) “secured person” means a person in respect of whom contributions are or were payable

under this Ordinance;

1
Proviso added by Act No. XI of 1994, s.2.

2
Subs. by Ord. No. LIII of 2001, s.2+Sch.

3
Subs. by Act No. I of 2008, s.3 (w.e.f 1 - 7 - 2 008).

4
Ins. by Ord. No. CIV of 2002, s.2.

5
Substituted by P.O. 4 of 1975, for “Government West Pakistan”.

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1
[(25a) “Self - Assessment Scheme” means a scheme of social security benefits, effective from

the 1 st July, 2001, with no intervention through checking by any staff member of the

Institution, in respect of employees sec ured under this Ordinance
2
[* * *] and the

employer undertakes to pay a contri bution in respect of them
2
[at the fixed rate of
3
[ three

hundred and sixty] rupees] per month per secured empl oyee; ]

(26) “sickness” means a condition which requires medical treatment or necessitates

abstention from work on medical grounds;

(27) “Social Security Area” means an area to which this Ordinance has been applied;

(28) “Social Security Court” means a court constituted under section 60:

(29) “strike” and “lock - out” shall have the same meaning as is respectively assigned to them

in the Industrial Disputes Ordinance, 1959 (LVI of 1959);

(30) “wages” means remuneration for service paid or payable i n cash or in kind to a secured

person, not being less than remuneration based on the minimum rates of wage declared

under the Minimum Wages Ordinance, 1961 (XXXIX of 1961), without taking account

of deductions for any purpose, under a contract of service o r apprenticeship, expressed

or implied, and shall be deemed to include any dearness allowance or other addition in

respect of the cost of living and any payment by the employer to a secured person in

respect of any period of authorised leave, illegal lock - out or legal strike; but does not

include –

(a) any payment for overtime; or

(b) any sum paid to the person employed to defray special expenses entailed by the

nature of his employment; or

(c) any gratuity payable on discharge; or

(d) any sum paid a s bonus by the employer;

(31) “week” means a period of seven days commencing at midnight of Sunday night.

CHAPTER II

ORGANISATION

(1) As

soon as may be after the commencement of this Ordinance, Government shall establish by notification

an institution to be called the Employees’ Social Security Institution.

(2) The Institution shall be a body corporate having perpetual succession and a common seal,

with power, subject to the provisions of this Ordinance, to acquire, hold and dispose of property, both

movable and immovable, and shall by the aforesaid name sue and be sued.

(3) The institution shall have its own fund, to be called the Employees’ Social Security Fund,

and may inc ur out of the said Fund such expenditure as may be necessary.

1
Inserted by Ordinance LIII of 2001, s.2 .

2
Omitted & Subs. by Ord. No. CIV of 2002, s.2.

3
Subs. by Finance Act I of 2008, s.3. (w.e.f 1 - 7 - 2008).

Page 10 of 32

(1) The general direction and su perintendence of the affairs of the institution

shall vest in a Governing Body which, with the assistance of a Commissioner, may exercise all powers

and do all acts and things which may be exercised or done by the Institution.

(2) In discharging its funct ions, the institution shall be guided by such instructions on questions

of policy as may be given to it from time to time by Government, which shall be the sole judge as to

whether any instructions are on a question of policy or not.

(1) The Governing Body shall consist of the following members to be

appointed by Govern ment, by notification, namely: -

1
[(a) the Minister - in - charge of the Labour Department, Government of the Punjab, a

person who is or has been a Judge of the High Court, a senior officer in the

service of Pakistan not below the rank of a Commissioner of a Division or

Secretary to Government, and such person shall be the Chairman of the

Governing Body];

(b) four persons to represent Government, one each respectivel y from the

departments of Labour, Industries, Health and Finance;

(c) three persons to represent employe rs ;

(d) three persons to represent secured persons;

(e)
2
[the Commissioner and the Medical Adviser, ex - officio .]

(2) Members to be appointed und er clause (c) or clause (d) of sub - section (1) shall respectively

be chosen from a list of names submitted in the prescribed manner by the organisations of employers

and employees recognised by Government for that purpose:

Provided that pending the making of rules in this behalf, the first members to be so appointed

shall be chosen from such persons as Government may deem suitable.

(3) Subject to the other provisions of this Ordinance a member shall hold office for three years

from the date on which his a ppointment is notified under sub - section (1).

In addition to the powers conferred on,

and the functions entrusted to it by the other provisions of this Ordinance or by the rules, the Governing

Body shall hav e powers –

(a) to approve the budget estimates, the audited accounts and the annual report of

the Institution for submission to Government in accordance with the provisions

of this Ordinance; and

(b) to call for any information, or direct any research to be made for the furtherance

of the objects of this Ordinance.

(1) The meetings of the Governing Body shall be held

at such times and at such places as may be provided by regulations, and until regulations are made in

this behalf, such meetings shall be convened by the Chairman.

1
Subs. by Pb Act V of 1973.

2
Subs. by Pb Ord. Xof 1971, for “the Medical Advicsor, ex - officio”.

Page 11 of 32

(2) To constitute a quorum at a meeting of the Governing Body, the number of members present

shal l be five.

(3) Each member shall have one vote, and, in the event of equality of votes, the Chairman shall

have second or casting vote.

(4) The meetings of the Governing Body shall be presided over by the Chairman, and in the

absence of the Chairman, by the person elected for the purpose by the members present from amongst

themselves.

All orders and decisions of the Governing Body shall be

authenticated by the signature of the Chairman or of such other member as may hav e been authorised

by the Governing Body in writing for the purpose.

(1) If, in the opinion of Government, the Governing

Body has persistently failed to perform the duties imposed upon it by or under this Ordinance, or has

abused its powers, Government may, by notification, supersede the Governing Body:

Provided that before such supersession, Government shall give the Governing Body a

reasonable opportunity to show why it should not be superseded, and shall consider any explanation

or objection which it submits.

(2) Upon the publication of a notification under subsection (1), the person holding office as

Chairman and members shall cease to hold such office.

(3) Immediately upon the supersession of a Governing Body, Government shall constitute

another Governing Body by appointing new members in accordance with the provisions of section 5.

Members shall receive such fees and allowances as may be

prescribed.

A member, other than
1
[an] ex - officio member, may resign his office by

notice in writing to Government, and his seat shall fall vacant on the acceptance of the resignation.

(1) No person shall be or shall continue to be member, if he –

(a) has been convicted of an offence involving moral turpitude; or

(b) is declared to be of unsound mind by a competent Court; or

(c) is an undischarged insolvent; or

(d)
2
[* * * * * * * * ];

3
[(e) is a member of the staff of the Ins titution other than the Commissioner and the

Medical Adviser];

(f) has any direct or indirect interest in a contract with, or in any work being done

for, the Institution, except as a shareholder (not bei ng a Director) of a company;

or

1
Subs. by Pb Ord. X of 1971, for “the”.

2
Del. by Pb Act V of 1973.

3
Subs. by Pb Ord. X of 197 1 .

Page 12 of 32

(g) owes to the Institution contributions to the extent specified in the regulations;

or

(h) has lost the capacity by virtue of which he was appointed as a member; or

(i) has failed to attend more than one - third of the number of meetings of the

Governing Body held during any year.

(2) Government may, by order in writing, remove the Chairman or a member, if he –

(a) refuses or fails to discharge or becomes, in the opinion of Government,

incapable of discharging his responsibilities under this Ordinance; or

(b) has, in the opinion of Government, abused his position as a member; or

(c) has absented himself from three consecutive meetings of the Governing Body

without the lea ve of Government in the case of the Chairman, or of the

Chairman in the case of a member:

Provided that before such removal, Government shall give the Chairman or the member, as the

case may be, a reasonable opportunity of showing cause as to why he shoul d not be removed, and shall

consider any explanation or objection which he submits.

A member appointed to fill a vacancy other than a full - term

vacancy, shall hold office for only so long as the member in whose place he i s appointed would have

been entitled to hold office if the vacancy had not occurred.

The head Office of the Institution shall be at Lahore, but Government may,

by notification, transfer it to such other place as may be specified in such notification.

As soon as may be, *{the Institution}* shall appoint a Medical Advisor

having the prescribed qualifications.

The Medical Advisor shall –

(a) advise the Governing Body on matters relatin g to the administration of medical

care and the prevention and treatment of diseases among secured persons;

(b) perform such other duties in connection with medical care as may be specified

in the regulations.

(1) The Institution shall appoint Medical

Practitioners and Medical Boards in such Social Security areas and in such manner as may be provided

by regulations.

(2) The powers and functions of Medical Practitioners and Medical Boards, and the fees and

a llowances to be paid to such practitioners or the members of such boards, shall be such as may be

provided by regulations.

Page 13 of 32

(1) There shall be a Commissioner and a Vice -

Commissioner of the Institution both to be ap pointed by Government.

(2) The Commissioner shall –

(a) be the chief executive of the Institution and shall act as Secretary to the

Governing Body;

(b) be responsible to the Governing Body in respect of all matters relating to the

structure, administration and personnel of the Institution; and

(c) have such powers regarding appointment, transfer, promotion, dismissal and

other matters affecting the staff of the Institution as are provided for by

regulations.

(3) The Vice - Commissioner shall perform the duties of the Commissioner when the latter is

absent or prevented from acting, and the Commissioner may assign to the Vice - Commissioner the

responsibility for the direction of certain services or delegate to him any of his own powers under thi s

Ordinance, the rules and the regulations.

The Governing Body may employ such officers and

staff for the administration of the affairs of the Institution as the regulations may provide.

CHAPTER III

CONTRIBUTIO NS

(1) Subject to the other provisions of this

Chapter, the employer shall, in respect of every employee, whether employed by him directly or

through any other person pay to the Institution a con tribution at such times, at such rate
1
[not more

than six per cent ] and subject to such condi tions as may be prescribed
2
[:]

2
[Provided that no contribution shall be payable on so much of an employee’s wages as is in

excess of
3
[
1
[four] hundred rupees per day or
1
[five] th ousand rupees per month]

(2)
4
[* * * * * * * *]

4
[(3) The employer shall n ot be entitled, to deduct
3
[his own share of contribution] from the

employee’s wages or otherwise to recover from him any portion of the contribution, notwithstanding

any agreement to the contrary].

(4)
2
[* * * * * * * ]

(5) For the purpose of determining the amount of the contribution payable, daily wages shall

be calculated in such manner as may be provided by regulations.

1
Ins. And Subs. by Finance Act No. I of 2008, S.3 (w.e.f 1 - 7 - 2008).

2
Subs., added & omitted bt Act IX of 1994, s.4+sch.

3
Subs. by Ord. No. CIV of 2002, s.3.

4
Del. & Subs. b y Ord. IX of 1972.

Page 14 of 32

(6) Where the mode of payment of remuneration, whether in cash or in kind, makes it difficult

to determine the amount of wages for computing the contribution, the Commissioner may, subject to

regulations and in consultation with the representatives of employers and employees, determine such

wages.

(7) Any sum deducted from another employee’s wages by the employer under this Ordinance

shall be deemed to have been entrusted to him for the purpose of paying the employee’s contribution

in respect of which it was deducted.

(8) In the case of construction work the owner of the building shall guarantee the payment of

contributions by the contractors.

(9) In the case of works executed or undertakings carried on behalf of the State by a contractor

or licensee, the competent public authority shall, before final settlement of the claims of the contractor

or lic ensee arising out of the contract, require the production of a certificate from the Institution

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 s uch claim, the appropriate amount of the

contributions payable, and pay such amount direct to the Institution.

1
[ 20A. Self - Assessment Scheme . – (1) Notwithstanding anything contained in this Ordinance,

an employer who opts for the self - assessment scheme sh all be liable to pay to the Institution a

contribution
2
[of
3
[three hundred and sixty] rupees] per month per secured employee.

(2) The liability of an employer to pay contribution under the self - assessment scheme shall be

in respect of those employees who were secured under t his Ordinance on the 30th June, 2001.

(3) Every employee secured under this Ordinance in respect of whom the employer pays

contribution shall be liable to pay through the employer an amount of t w e n t y rupees per month as his

share t o the Institution.]

Every employer shall keep such records and shall

submit to the Institution such returns, at such times, in such form and containing such particulars

relating to persons employed by him, as may be provided in the regulations.

(1) Any official of the Institution

duly authorised by a certificate in a form specified in the regulations, may, for the purpose of inquiring

into the correctness of an y of the particulars stated in the records or returns referred to in section 21 or

for the purpose of ascertaining whether any of the provisions of this Ordinance have been complied

with –

(a) require an employer to furnish to him such information as he may consider

necessary; or

(b) at any reasonable time enter any establishment or other premises occupied by

such employer and require any person found incharge thereof to produce and

1
Ins. by Ord. LIII of 2001, s.2+Sch.

2
Subs. by Ord. CIV of 2002, s.2.

3
Subs. by Finance Act No. I of 2008, s.3 (w.e.f 1 - 7 - 2008).

Page 15 of 32

allow him to examine such accounts, books and other documents relating to the

employment of persons and payment of wages, or to furnish to him such

information, as he may consider necessary; or

(c) examine, with respect to any matter relevant to the purposes aforesaid, the

employer, his agent or any person found in such establishment or other

premises, or any other person whom the said official has reasonable cause to

believe to be or to have been a secured person.

(2) The official referred to in sub - section (1), shall be bound to secrecy as regards all matters

with which he becomes acquainted in the performance of his duties and which do not relate to matters

provided for in this Ordinan ce.

(3) If an employer fails to maintain records or to submit returns as required by regulations, or

otherwise fails to comply with the provisions of sub - section (1) and thereby makes it difficult to

ascertain the identity of persons required to be secure d or the amount of contribution payable, the

contribution shall be assessed on the basis of such evidence as the Institution may find satisfactory for

this purpose.

1
[(4) No staff member of the Institution shall visit the premises of any establishment, op ting

for the Self - Assessment Scheme under section 20A, for the purpose of checking of employer’s books,

record , etc., during the period
2
[of two years].]

2
[(5) The number of annual inspections in respect of those establishments which do not opt for

self - a ssessment scheme shall be restricted to only one which shall be notified to the establishments in

advance and shall, at the maximum, be restricted to last two years.]

revenue. – (1) If any employer fails to pay, on the due date, the contributions payable by him under

sub - section (1) of section 20, the amount so payable by him shall be increased by such percentage or

amount as may be prescribed:

Provided that in no case shall such increase exceed fifty per centum of the amount due:

Provided further that no part of such increase shall be payable by, or the liability to pay the

same be passed on by the employer to his employees.

(2) Without prejudice to any other re medy, the amount of the contributions due, together with

the increase provided for under sub - section (1), may be recovered as arrears of land - revenue.

employer. – In the eve nt of default in payment of contributions by the employer in respect of a secured

person, such secured person shall, unless he has connived at such default, have and enjoy the same

rights under this Ordinance as if no such default had occurred.

3
[An] employer shall be entitled to the refund

to any contribution paid to the institution under the erroneous belief that it was payable
4
[* * *] under

the provisions of this Ordinance, and shall be entitled to the refund of the excess amount of the

contribution where such contribution had been paid at a higher rate than the rate prescribed.

1
Added by Ord. LIII of 2001, s.2+Sch.

2
Subs. & added by Ord. CIV of 2002, s.5 .

3
Subs. by Ord. IX of 1972, for “Every person or his”.

4
The words “in respect of such person,” del. Ibid .

Page 16 of 32

Provided that where a contribution was paid under the erroneous belief that a person was a

secured person, any sum paid to such person or his dependents by way of benefits shall, in so far as

possib le, be deducted from the amount of such refund:

Provided further that no contribution or excess amount of any contribution shall be refunded

unless an application for such refund is made within six months of the date on which the contribution

was paid.

2 6. Increase of contributions where safety rules not observed . – If an employer fails to

observe rules of safety or hygiene prescribed by or under any enactment applicable to his

establishment, the Commissioner may, subject to rules, by order in writing, increase the employer’s

rate of contribution provided that such increase shall not exceed twenty per centum of the contribution

otherwise payable.

Any claim of the Institution for unpaid

contributions shall be extinguished in the manner provided in the regulations.

CHAPTER IV

FINANCE AND AUDIT

(1) All contributions paid under this Ordinance, and

all other moneys received by or on behalf of the Institution shall be paid into the Fund, which shall be

held and administered by the Institution for the purposes of this Ordinance.

(2) The Institution may accept grants, donations and gifts from any Government or from a local

authority or other body for all or any of the purpose s of this Ordinance.

(3) All moneys accruing or payable to the Fund shall be paid into such scheduled bank as may

be approved by the Governing Body, or to any office of the Institution.

(4) The Institution shall maintain separate accounts for administrative expenses, and for such

branches of social security and such other purposes as may be prescribed.

The Institution shall establish and maintain reserves in connection with

the branches of social security prescribed in accordance with sub - section (4) of section 28 at such

times, upto such amounts, and in such manner as may be prescribed.

(1) Subject to rules, the Institution may, from time to time, invest

any moneys which are not immediately required for payments under this Ordinance, and may reinvest

or realise such investments.

(2) The Institution may, with the previous sanction of Government and on such terms as it may

specify raise loans and take measures for discharging such loans.

(1) The Institution shall, before such date and in such manner as may be

prescribed, draw up estimates for the ensuing year of –

(a) the administrative expenses of the Institution;

(b) the expenditure to be incurred under each of the branches o f social security and

other purposes for which separate accounts are prescribed in accordance with

sub - section (4) of section 28; and

(c) the income of the Institution from contributions, the special tax payable under

Page 17 of 32

(2) The Institution shall allocate the estimated income from the special tax towards meeting

capital expenditure in accordance with sub - section (3) of section 70, and after allocating sufficient of

the estimated income from contributions and other sourc es, if any, to cover the estimated

administrative expenses, shall allocate the remainder of such estimated income among the branches of

social security and other purposes referred to in clause (b) of sub - section (1).

(3) Such estimates and allocations shall, before such date as may be prescribed be submitted to

Government and, when approved by it, shall constitute the budget of the Institution for the ensuing

year.

(4) If Government has not approved such estimates and allocations, with or without

amendments, within thirty days of their submission or before the commencement of the financial year

to which such estimates relate, whichever is the later, its approval shall be deemed to have been given

and the estimates and allocations as submitted shall constitute the budget of the Institution for the

financial year to which they relate.

(5) If it appears that expenditure under any budget head is likely to exceed the budget provision

under such head, the Governing Body may increase such budget provision by transferring thereto from

any other budget head, any amounts not required or not expected to be required or not under such head:

Provided that no such transfer shall be made to the budget heads for either administrative

expenses or the provision of me dical care without the prior approval of Government.

(6) If, notwithstanding the application of the provisions of sub - section (5), it appears that

expenditure under any budget head is likely to exceed the corresponding budget provision, or that

income und er any budget head is likely to fall short of the corresponding budget provision, the

expected excess or deficiency, as the case may be, shall be reported to Government, who shall take

such action, if any, as may seem appropriate:

Provided that no payment to which a claimant is entitled under this Ordinance shall be withheld

pending such action.

(1) The Institution shall maintain accounts of its income and

expenditure and of its assets and liabilities in such form and manner as ma y be prescribed.

(2) The Institution shall appoint an internal auditor who shall perform such duties and exercise

such powers as may be provided by regulations.

(3) The accounts of the Institution shall be audited by an external auditor appointed by

Gove rnment, at such times and in such manner as may be prescribed.

(4) The external auditor shall have access to the books, accounts and other documents of the

Institution at all reasonable times, and may call for such explanations and information as he may

r equire, or examine any officer of the Institution.

(5) The external auditor shall forward his report to Government together with an audited copy

of the accounts of the Institution.

(1) The Institution shall, within six months after t he closing of a

financial year, submit to Government an annual report of its work and activities during that financial

year, and such report shall cover such matters as may be prescribed.

(2) The annual report, together with the audited accounts of the In stitution, shall be published

and copies thereof shall be made available for sale to the public.

Page 18 of 32

The Institution shall, at intervals of not more than five

years, have an actuarial valuation made of its assets and liabilities:

Provided that Government may direct a valuation to be made at such other times as it may

consider necessary.

CHAPTER V

BENEFITS

(1) A secured person who is certified, by a medical practitioner

authorised by the Institution in the manner provided in the regulations to give such a certificate, to be

incapable of attending to his work on account of sickness shall, subject to regulations, be entitled to

receive sickness benefit at such rate as may be fixed by Governm ent by notification, in consultation

with the Institution, if during the six calendar months immediately preceding the date on which his

incapacity or work was so certified, contributions in respect of him were paid or payable for not less

than ninety days .

1
[(2) A secured person shall be entitled to receive sickness benefits throughout the period of

sickness:

Provided that during a continuous period of three hundred and sixty - five days such benefit shall

not be allowed for a period exceeding –

2
[(a) thr ee hundred and sixty - five days, in case he has been suffering from

Tuberculosis or Cancer which render an employee incapable to earn his

livelihood . ]; and

(b) one hundred and twenty - one days, in case he has been suffering from any other

disease:

Provided further that he shall not be entitled to receive such benefit for

the first two days of his sickness if such sickness does not, within fifteen days,

follow the previous period of sickness for which he received or was entitled to

receive such benef it.]

A secured woman shall, subject to regulations be entitled to receive

maternity benefit at such rate as may be fixed by Government by notification, in consultation with the

Institution, if contributions in respect of her were p aid or payable for not less than one hundred and

eighty days during the twelve calendar months immediately preceding the expected date of her

confinement as certified by a medical practitioner authorised by the Institution in the manner provided

in the reg ulations to give such a certificate, and such benefit shall be paid for all days on which she

does not work for remuneration during a period of twelve weeks, of which not more than six weeks

shall precede the expected date of confinement.

2
[ (1) ] On the death of a secured person receiving or entitled to receive injury

or sickness benefit, or medical care at the time of his death, the surviving widow, widows or needy

widower, or if there is no surviving widow, widows or needy widower, the person who provided for

the funeral, shall, subject to regulati ons, be entitled to such death grant equal to the daily rate of

sickness benefit multiplied by thirty, but in no case less than
2
[one thousand and five hundred] rupees.

2
[(2) Where husband of a secured woman dies, she shall, subject to regulations, be entitled to

receive iddat benefit equal to the daily rate of her wages during the period of her iddat :

1
Subs. by Act XV of 1971.

2
Subs. renumbered and added by Act No. XI of 1994, s. 2 + sch.

Page 19 of 32

Provided that a secured woman being a seasonal employee shall be entitled to receive iddat

benefit in the same manner and to the same extent notwithstanding termination of seasonal

employment during the period of iddat :

Provided further that no employer shall refuse leave for the period of iddat and such leave shall

not be accounted towards leave provided under any other law for the time being in force.]

1
[(1) A secured person and his dep endents

shall be entitled to medical care in the manner and to the extent provided in the regulations.]

(2) A secured woman shall subject to regulations, be entitled to prenatal confinement and post -

natal medical care, if she is entitled to maternity bene fit under section 36 or if, during six calendar

months immediately preceding her claim, contributions in respect of her were paid or payable for not

less than ninety days.

2
[38 - A. Medical care of dependents, etc. – Where a secured person dies other than du e to any

employment injury, his dependents shall, subject to regulations, be entitled to medical care for one

year from the date of death of the secured person:

Provided that the deceased secured person had been in continuous employment of an

establishment for not less than twelve months immediately preceding his death:

Provided further that where the deceased secured person was a seasonal employee, his dependents

shall be entitled to medical care for six months from the date of death of such s ecured person:

Provided also that the deceased had been in employment of an establishment for not less than

six months during two continuous seasons immediately preceding his death.]

A secured person shall, subject to regulations, be entitled to receive

injury benefit at such rate as may be fixed by Government by notification, in consultation with the

Institution, in respect of any day
3
[* * * * * * * ] including the day on which, as a result of an

employment injury, he is certified by a medical practitioner authorised by the Institution in the manner

provided in the regulations to give such a certificate to be incapable of work, but for not more than one

hundred and eighty days.

(1) A secured person who sustains total or partial disablement

shall, subject to regulations, be entitled, upon the expiration of his entitlement to injury benefit, to

receive disablement pension, according to the degree of disableme nt determined from time to time, at

such rates for different degrees of disablement as may be fixed by Government by notification, in

consultation with the Institution.

(2) Disablement pension shall terminate with the death of the recipient or when disabl ement

ceases, or ceases to be total or partial disablement:

life.

Provided that if a disablement pension has been paid for five years it shall be payable for

(1) A secured person who sustains minor disablement shall,

subject to regulations, be entitled to a disablement gratuity at such rates for different degrees of

disablement as may be fixed by Government by notification, in consultation with the Institution.

1
subs. by W.P. ord. XLVII of 1969

2
Ins. by Act XI of 1994, s. 2 + s ch.

Page 20 of 32

(2) Where a person receiving disablement pension ceases to suffer from total or partial

disablement but continues to suffer from minor disablement he shall, on the termination of his

disablement pension, be entitled to disablement gratuity under this section.

(1) Where a secured person dies as a result of an employment injury,

a survivor’s pension shall, subject to regulations, be payable to each of his dependents as follows, that

is to say –

(a) to the widow, widows, or needy widower, during life, at a rate equal to three -

fifths of the rate of total disablement pension to which the secured person was,

or would have been entitled, and where there are two or more widows, the

pension shall be divided equally between them;

(b) to each dependent child, at a rate equal to one - fifth of the rate of such total

disablement pension:

Provided that if the child is a full orphan, the rate shall be two - fifths of

the rate of the total disablement pension:

Provided further that if and so long as the total of the survivor’s pensions

would otherwise exceed the rate of such total disablement pension, the pension

of each of the survivors shall be reduced proportionately so that the total

pensions payable to them does not exceed the rate of the said total disablement

pension.

(2) In case the deceased person does not leave a widow, or needy widower, a survivor’s pension

shall be payable for life to a dependent father, if he be alive, and if he be not alive, to a dependent

mother, if she be a live, at a rate equal to one - fifth of the rate of the total disablement pension to which

the secured person was or would have been entitled.

1
[(2 - A) In case the deceased person does not leave a dependent, a survivor’s pension shall be

payable for life to a dependent father if he be alive, and if he be not alive, to a dependent mother, if

she be alive and if she be not alive, to dependent brothers and sisters in equal shares, at a rate equal to

one half of the rate of total disablement pension to which the secured person was or would have been

entitled.]

(3) Survivor’s pension shall be payable upon the death of the secured person and shall

terminate –

(a) upon the death of the survivor; or

(b) where the survivor is a widow, upon her remarriage; or

2
[(c) where the survivor is a dependant child –

(i) on attaining the age of nineteen years, in case of a female child; and

(ii) Twenty - one years, in case of a male child
2
[ : ] ]

2
[Provided that such as limit shall not apply to dependent un married daughters;]

1
Added by P.b Act II of 1975 .

2
Subs. and added by Act XI of 1994, s. 2 + Sch.

Page 21 of 32

and in any such case the pensions of the remaining survivors shall, if necessary, be adjusted within the

maximum laid down in the second proviso to sub - section (1).

pension . – Where a secured person dies while he is in receipt of injury benefit or of a total disablement

pension the widow, widows or needy widowers, or, if there is no widow or needy widower, the person

who provided for the funeral, shall, subject to regulations , be entitled to a death grant equal to the daily

rate of the injury benefit or of the total disablement pension, as the case may be, multiplied by thirty,

but in no case less than
1
[one thousand and five hundred] rupees.

(1) When medical care is required as

a result of an employment injury –

(a) no conditions as regards payment of contributions shall apply;
2
[and]

(b) it shall include dental care in addition to the services referred to in section 45;

3
[* * *]

(c)
4
[* * * * * * * ]

(2) A person in receipt of injury benefit, disablement pension for loss of earning capacity not

less than fifty per centum of a survivor’s pension shall be entitled to medical care for so long as the

injury benefit, disablement pension or survivor’s pension, as the case may be, continues, and, in the

case of a disablement pension being received by the secured person, for six months after the

termination of the pension.

(1) Medical care s hall include –

(a) general practitioner care, including domiciliar visiting;

(b) specialist care in hospitals for in - patients and out - patients and such specialist

care as may be available outside hospitals;

(c) essential pharmaceutical supplies as prescribed by a medical practitioner;

(d) hospitalization where necessary, including cases of pregnancy and confinement;

(e) pre - natal confinement and post - natal care, either by medical practitioners or by

qualified midwives.

(2)
2
[* * * * * * * ]

(1) Regulations shall specify the manner in which

medical care shall be provided.

1
Subs. by Act XI of 1994, s. 2 + Sch.

2
Added and del. b y Ord. IX of 19 72

3
the word “and”, del. Ibid.

4
Del. I bid .

Page 22 of 32

(2) The Institution may, with the approval of Government, establish and maintain such

hospitals, dispensaries and other facilities as it finds necessary for providing medical care in pursuance

of the provisions of this Ordinance.

(3) The Institution may buy or import and dispense pharmaceutical supplies direct to the

beneficiaries.

(4) The Institution may enter into agreements with Government, any local authority, private

body or individual in regard to the provision of medical care to persons entitled to it un der this

Ordinance.

(5) The Institution may enter into an agreement with an employer who maintains a hospital or

dispensary or any other medical facility for the benefit of his employees for the utilization of such

hospital, dispensary or facility for the purposes of the Institution and such agreement may, among other

things, specify the persons to whom medical care shall be provided, the type of benefit to be made

available, the minimum level of such benefit, the conditions under which such benefit shall be

provided, the extent of supervision which the Institution may exercise over the hospital, dispensary or

other medical facility, the submission of reports to the Institution by the employer, and the extent and

manner of re - imbursement to the employer.

4 7. Institution’s power to promote measures for health, welfare etc. of secured persons . –

The Institution may, in addition to the benefits specified in this Ordinance, undertake other measures

for improving the health and welfare of secured persons and for the rehabilitation and settlement of

such secured persons as may have been disabled or injured, and may for that purpose incur expenditure

from the Fund.

(1) All claims for benefits under this Ordinance shall be

made withi n such times as may be prescribed, and in such form and manner, and shall be accompanied

by such documents, information and evidence as to entitlement as may be provided in the regulations.

(2) Payment in respect of benefits shall be made in such manner, and at such times and places

as may be provided in the regulations.

(1) The right to receive any payment in respect of

any benefit under this Ordinance shall not be transferable or assignable.

(2) No benefit pay able under this Ordinance shall be liable to attachment or sale in execution

of any decree or order of any Court.

Notwithstanding anything to the contrary contained in the

Stamp Act, 1899 (Act II of 1899), stamp duty shall not be chargeable upon any draft or order or receipt

in respect of any benefit payable under this Ordinance.

(1) A secured person shall not be paid, for the same period,

more than one of the benefits referred to in sectio ns 35, 36 and 39, namely, sickness benefit, maternity

benefit and injury benefit, and where any person is entitled to more than one of these benefits shall be

given the higher or highest of such benefits.

Page 23 of 32

(2) No person shall be entitled to sickness benef it or maternity benefit or injury benefit for any

day for which he receives wages.

(1) When a person has received any benefit

or payment under this Ordinance to which he is not lawfully entitled, he shall be liable to repay to the

Institution the value of the benefit or the amount of such payment, and, in the case of his death, his

legal heirs shall be liable to repay the same from the assets of the deceased:

Provided that the Institution may waive repayment where there was no misrepresentation on

the part of the beneficiary and the repayment would cause undue hardship to him, or as the case may

be, to his survivors.

(2) For the purposes of this section, the value of any benefit received otherwise than in cas h

shall be determined in accordance with the regulations.

Where,

according to the finding of a Court, an employment injury was sustained by a secured person by reason

of a wrongfu l act or omission of the employer or his agent, the employer or his agent shall reimburse

to the Institution the actuarial present value of any periodical payment or the amount of any lump sum

payment which the Institution is liable to make under this Ordi nance and such actuarial value shall be

determined in accordance with the regulations.

Where a secured person is entitled

to receive or to recover, but has not received or recovered, from any pe rson, compensation or damages

in respect of any sickness or employment injury caused under circumstances creating a liability in

some person other than, in case of employment injury, the employer or his agent, the Institution shall

be entitled to be indemn ified by the person so liable.

1
[54 - A. Extent of benefits, etc . – Notwithstanding anything contained in this Chapter, so much

of wages of a secured person’s as are in excess of
2
[two hundred rupees per day or five thousand rupees

per month] shall not be accounted for the purpose of determining the rate of benefits provided under

sections 35, 36, 37, 39, 40, 41, 42 and 43].

Any amount recoverable by the Institution under this

Chapter may be recovered as arrears of land - revenue.

3
[(CHAPTER V - A

MEDICAL TREATMENT OF DOMESTIC SERVANTS

55 - A. Medical treatment of domestic servants. – Every employer of a domestic servant shall be

liable to provide at his own cost to the domestic servant medical care to the extent menti oned in section

45.]

1
Ins. by Act XI of 1994, s. 2 + sch.

2
Subs . by Ord. CIV of 2002, s. 6.

3
Added by Ord. IX of 1972.

Page 24 of 32

CHAPTER VI

DETERMINATION OF QUESTIONS AND CLAIMS

All questions as to the assessment of the degree of

disablement shall be determined by a medical board or medical practitioner appointed under section

17.

If any complaint is received or any

question or dispute arises as to –

(a) whether any person is a secured person within the meaning of this Ordinance

1
[* * *]; or

(b) the rate of wages or average daily wages of a secured person for the purposes of

the Ordinance; or

(c) the rate of contribution payable by an employer in respect of an employee; or

(d) the person who is or was the employer in respect of a secured person; or

(e) any benefit and the amount and duration thereof; or

(f) any other matter in respect of any contribution or benefit or other dues payable

or recoverable unde r this Ordinance;

the matter shall be decided by the Institution, in such manner, and within such time as the regulations

may provide, and the Institution shall notify its decision to the person or persons concerned, in writing,

stating therein the reason or reasons for its decisions.

The Institution may, subject to regulations, on new facts

being brought to its notice, review a decision given by it under section 57:

Provided that no decision shall be so reviewed without giving the person or persons concerned

an opportunity of being heard and adducing evidence in support of or against the decision, as the case

may be.

Any person aggrieved by a decision of the Institution

under section 57 or on a review under section 58 may appeal to the appropriate Social Security Court.

(1) Government may for purposes of this

Ordinance constitute, by notification, a Social Security Court for any Soc ial Security area or areas

specified in the notification.

(2) A Social Security Court shall be presided over by a Judge who shall be appointed by

Government.

has –

1
The words “or whether he is liable to pay the secured person’s contribution”, del. by Ord. IX of 1972

Page 25 of 32

(3) A person shall not be appointed as a Judge of a Social Security Court unless he

(a) for a period of not less than three years held a judicial office; or

(b) for a period, or for periods aggregating, not less than seven years, been an

advocate or pleader of the High Court.

(1 ) Subject to the provisions of sub - section (2),

a Social Security Court shall have exclusive jurisdiction to hear and decide appeals from decisions of

the Institution under section 57 or review under section 58 in respect of all claims, questions and

disputes arising in the appropriate Social Security Area. .

(2) Government may, by order in writing, transfer an appeal from one Social Security Court to

another, whenever it appears to it that such transfer will promote the ends of justice or tend to the

general convenience of the parties and witnesses.

(3) The Social Security Court to which an appeal has been transferred under the provisions of

sub - section (2) shall deal with the same as if it had been originally instituted in, or presented to, such

Court.

62 . Powers of Social Security Court, etc. – ( 1) A Social Security Court shall have all the

powers of a Civil Court for the purposes of summoning and enforcing the attendance of witnesses,

compelling the discovery and production of documents and material objects, administering oath and

recording evidence, and such a Court shall be deemed to be a Civil Court within the meaning of section

195 of the Code of Criminal Pr ocedure, 1898 (Act V of 1898).

(2) Notwithstanding anything contained in any other law, a Social Security Court may, for the

purpose of deciding any appeal, examine such witnesses and take such evidence as it considers

necessary.

(3) A Social Security Court may make such order with regard to costs incidental to any appeal

as it thinks fit.

(4) An order of a Social Security Court shall be enforceable as if it were a decree of a

Civil Court.

(5) A person shall be guilty of contempt of a Social Security Court if he, without lawful

excuse –

(a) offers any insult to the Social Security Court or any member thereof while the Court is

functioning as such; or

(b) causes any interruption in the work of the Social Security Court; or

(c) fails to produce or deli ver a document when ordered by the Social Security Court to do

so;

(d) refuses to answer any question of the Social Security Court which he is bound to

answer; or

Page 26 of 32

(e) refuses to take oath to state the truth or to sign any statement made by him when

requi red by the Social Security Court to do so;

and the Social Security Court may, without any complaint having been made to it, forthwith try such

person for such contempt and sentence him to a fine not exceeding fi fty rupees.

Any application, appearance or act required to be

made or done by any person to or before a Social Security Court (other than the appearance of a person

required for the purposes of his examination as a witness) may be made or performed by a legal

practitioner or by an officer of a registered trade union authorized in writing by such person, or, with

the permission of the Court, by any other person so authorized.

(1) Save as expressly provided in this section, no appeal shall lie from an order

of a Social Security Court.

(2) An appeal shall lie to the High Court from an order of a Social Security Court if it involves

a substantial question of law.

(3) The period of limitation for an appeal under this section shall be thirty days.

(4) The provisions of sections 5 and 12 of the Limitation Act, 1908 (IX of 1908) shall, apply

to appeals under this section.

Where the Institution has appealed against an order

of a Social Security Court that Court may, and, if so directed by the High Court shall, pending the

decision of the appeal, direct that the payment of any sum required to be paid by the order appealed

against shall be withheld.

CHAPTER VII

OFFENCES AND PENALTIES

66 . Offences . – ( 1) If any person –

(a) for the purpose of obtaining the allowance or denial of any payment or benefit under this

Ordinance, whether for himself or some other person, or for the purpose of avoiding any pa yment to

be made by himself or any other person under this Ordinance –

(i) knowingly makes or causes to be made any false statement or false

representation; O r

(ii) produces or furnishes, or causes or knowingly allows to be produced or

furnished, any docu ment or information which he knows to be false in a

material particular; or

(b) fails to pay any contribution which under this Ordinance he is liable to pay; or

(c) recovers or attempts to recover from a secured person, or deducts or attempts to

deduct from his wages the whole or any part of the 53[68][* * *] contribution;

or

Page 27 of 32

(d) fails or refuses to submit any return required by regulations or makes a false

return; or

(e) obstructs any official of the Institution in the discharge of his duties; or

(f) is guilty of any contravention of, or non - compliance with, any of the

requirements of this Ordinance or the rules or the regulations,

he shall, without prejudice to any action to which he may be liable under section 23 or section 70 or

any other provisio n of this Ordinance, be punished with imprisonment which may extend to three

months, or with fine not exceeding one thousand rupees , or with both.

(1) No prosecution under this Ordinance shall be instituted except with the

previous sanct ion of the Commissioner or of an officer authorized by him in writing in this behalf.

(2) No Court inferior to that of a magistrate of the first class shall try any offence under this

Ordinance.

(3) No Court shall take cognizance of any offence under thi s Ordinance except on a complaint

made in writing within six months of the date on which the offence was discovered.

(4)
1
[* * * * * * * ]

CHAPTER VIII

MISCELLANEOUS

against a person or proceedings for the winding up of a company, any contribution or other amount

payable under this Ordinance by such person or company shall be deemed to be included among debts

to be paid in priority to all other debts.

6 9. Exemption from taxes . – Notwithstanding anything contained in any other law,

Government may, by order in writing, exempt the Institution from any tax, rate or duty leviable by

Government or by a local authority under the control of Government.

(1) Where, in respect of any group of undertakings producing a

particular type of product or performing a particular type of service this Ordinance is, in accordance

with the provisions of sub - section (3) of section 1, applied to some area s or establishment, but not to

other areas or establishments, Government may, after consultation with the Institution by a notification

levy on the employers in the areas or establishments to which the Ordinance is not applied,

notwithstanding anything con tained in this Ordinance, a special tax, to be paid to the Institution, at

such rate, not exceeding five per centum of the total wages paid by the employer, at such times and

subject to such conditions, as may be prescribed.

2
[(2) For the purposes of subs ection (1), the total wages paid by the employers shall mean the

total wages which have accrued to all his employees not taking into account so much of an employee’s

wages as are in excess of one hundred and twenty rupees per day or three thousand rupees p er month.

1
Del. by Act of1973.

2 1
Subs. by Act XI of 1994, s. 2 + sch.

Page 28 of 32

(3) The proceeds of the special tax shall be paid into the Fund and shall be utilized for capital

expenditure towards building up and improving the medical facilities available for th e provision of

medical care under this Ordinance.

(4) All provisions of this Ordinance and rules or regulations relating to contributions, with the

exception of section 26 and the rules made there under, shall apply to the special tax as if it were a

contribution payable under section 20.

(1) In January of

each year, the Governing Body shall review the wage limits specified in
1
[clause (f) of sub - section (8)

of section 2] and the rates of contribution and benefits provided under this Ordinance in the light of

any changes in wage levels or living costs and shall submit a report thereon together with its

recommendations to

Government.

(2) Government may, after considering the said report and recommendations, by notification,

enhance or reduce the wage limits specified in
1
[clause (f) of sub - section (8) of section 2] or the rates

of benefits payable under this Ordinance.

(1)

No employer shall dismiss, discharge or reduce or otherwise punish an employee during the period in

which the employee is in receipt of sickness benefit, maternity benefit, injury benefi t or medical care.

(2) No notice of dismissal or discharge or reduction given to an employee during the period

specified in sub - section (1) shall be valid or operative.

When a person is entitled to any of the benefit s

provided by this Ordinance, he shall not be entitled to any similar benefit under any other law.

No suit for damages shall be instituted by secured

person against the employer in any Civil Court in respect of empl oyment injury covered by this

Ordinance.

The members of the

Governing Body and all officers and servants of the Institution shall be deemed to be public servants

within the meaning of the Pakistan Penal Code (Act XLV of 1860).

(1) If any difficulty arises in giving effect to the provisions of

Chapters III and V, Government may, by order notified in the official Gazette, make such provision or

give such direct ion as appears to it to be necessary for the removal of the difficulty.

(2) Any order made under sub - section (1) shall have effect notwithstanding anything

inconsistent therewith in any rules or regulations.

The Governing Body may direct that all or any of its powers and

functions may, in relation to such matter, and subject to such conditions, if any, as may be specified,

be also exercisable by the Commissioner or any other officer or authority subordinate to the Institution.

1
Subs. by Act XI of 1994, S.2+ Sch.

Page 29 of 32

No act or proceeding of the

Governing Body shall be invalid or questioned merely on the ground of existence of any vacancy

therein or of any defect in the constitution thereof or in the appointment or qualification of any member.

(1) Government may, subject to the condition of previous

publication, by notification, make
1
[ rules ] to carry out the purposes of this Ordinance.

(2) In particular and without prejudice to the generality of the foregoing power such rules may

provide for all or any of the following matters, namely: –

(i) the manner in which names of persons from whom members of the Governing

Body may be appointed shall be submitted by organizations of employers and

employees recognized by Government for that purpose;

(ii) powers and functions of the Governing Body;

(iii) fees and allowances of the members of the Governing Body;

(iv) qualifications to be possessed by th e Medical Advisor;

(v) times and rates at which and conditions subject to which contributions and the

special tax shall be payable
2
[* * *];

(vi) percentage or amount by which contributions and special tax in arrears may be

increased under section 23;

(vii) increase of
3
[* * *] contribution under section 26 where employer fails to

observe rules of safety or hygiene;

(viii) branches of social security and other purposes for which separate accounts

shall be maintained by the Institution;

(ix) times at which, amounts up to which and the manner in which security

reserves shall be established and maintained;

(x) investment of surplus moneys, realisation of investments and reinvestment of

the proceeds;

(xi) times at which and the manner in which the budge t shall be prepared and

submitted to Government;

(xii) form and the manner in which the Institution shall keep accounts of its income

and expenditure and of its assets and liabilities;

(xiii) times at which and the manner in which the accounts of the Institution shall be

audited by the external auditor;

(xiv) matters which the annual report of the Institution shall cover; (xv) times within

which claims for benefit shall be made;

(xvi) remuneration and conditions of service of officers to be appointed by

Government under this Ordinance;

1
See Gazette of W.P. 1966, Part - I Page 1289.

2
The words “and the ratio of the employer’s” contribution to the employees contribution”, del. by Ord. IX of 1972

3
The word “employer’s, del. by Ord. IX of 1972.

Page 30 of 32

(xvii) any other matter which is required or allowed by this Ordinance to be

prescribed.

(1) The Governing Body may, subject to the condition of

previous publication, by notification, make regulations not inconsistent with the pro visions of this

Ordinance or the rules.

(2) In particular, and without prejudice to the generality of the foregoing power, such

regulations may provide for all or any of the following matters, namely: -

(i) the manner in which medical practitioners shall be authorised to give

certificates required under any of the provisions of this Ordinance, the form of

such certificates and the duties of medical practitioners in that regard;

(ii) occupational diseases which may cause employment injury;

(iii) qualifications which a person practising medicine shall possess for

appointment as a medical practitioner under section 17 or to be authorised to

give certificates under sections 35, 36 and 39 or for recognition for any other

purpose under this Ordinance;

(iv) times and places at which meetings of the Governing Body shall be held;

(v) amount of contributions owed to the institution which shall disqualify a person

from being or continuing to be a member of the Governing Body;

(vi) duties of Medical Adviso r in connection with medical care;

(vii) powers, functions, fees and allowances of medical practitioners and medical

board and the areas for which and the manner in which they shall be

appointed;

(viii) powers of the Governing Body to employ officers and staff for administration

of the affairs of the institution;

(ix) method of recruitment, pay and allowances, superannuation benefits and other

conditions of service of officers and servants of the Institution;

(x) powers of the Commissioner with regard t o appointment, transfer, promotion,

dismissal and other matters affecting the staff of the Institution;

(xi)
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[* * * * * * * ]

(xii) the manner in which daily wages shall be calculated for the purpose of

determining the contribution payable;

(xiii) determination of wages for computation of contributions where the mode of

payment of remuneration, in cash or kind, makes such computation difficult;

(xiv) records to be kept and returns to be submitted by employers, times at which

and the form in which such returns are to be submitted, and the particulars

relating to employees to be stated in such returns;

(xv) form of certificate authorising an official of the Institution to exercise the

powers of inspection under section 22;

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Del. by Ord. IX of 1972.

Page 31 of 32

(xvi) the manner in which any claim of the Institution for unpaid contributions may

be extinguished;

(xvii) powers and duties of internal auditor;

(xviii) conditions of entitlement to receive sickness, maternity and injury benefit,

disablement pension, disablement gratuity, death grant, survivor’s pension and

medical care;

(xix) the items of medical care in respect of specified disease to which a secured

person shall be entitled;

(xx) the manner in which medical care shall be provided;

(xxi) arrangements under which beneficiaries shall share the costs of certain kinds

of medical care and the manner in which such costs shall be determined;

(xxii) the form and manner in which claims for benefits shall be preferred, and the

documents, informatio n and evidence which shall accompany such claims;

(xxiii) the manner in which and the times and places at which payment in respect of

benefits shall be made;

(xxiv) determination, for the purpose of repayment to the Institution, of the value of

any benef it received otherwise than in cash;

(xxv) determination of the actuarial present value of any periodical payment for

which the Institution becomes liable by reason of a wrongful act or omission

of the employer or his agent;

(xxvi) the manner in which and the time within which complaints, questions and

disputes shall be decided;

(xxvii) the circumstances and manner in which, on new facts coming to light, the

Institution may reopen cases and review decisions;

(xxviii) the manner in which supplies for the use of the Institution shall be obtained

and immovable property hired or acquired, and in which such supplies or

property shall be sold or otherwise disposed of; and

(xxix) any other matter not provided for in this Ordinance or rules and necessary to

give effect to the provisions of this Ordinance.

Workmen’s compensation and maternity benefit

payable under the Workmen’s Compensation Act, 1923 (VIII of 1923), the Employers’ Liability Act,

1938 (XXIV of 1938), th e Mines Maternity Benefit Act, 1941 (XIX of 1941), the West Pakistan

Maternity Benefit Ordinance, 1958 (West Pakistan Ordinance XXXII of 1958), or under any other law

shall not be payable in respect of any employment on or after the appointed day in respec t of such

employment and the enactments and laws aforesaid shall, in so far as they are inconsistent with the

provisions of this Ordinance, cease to have effect.

Page 32 of 32

The Employees’ Social Insurance Ordinance, 1962 (XXII of 1962), in its

applicati on to the Province of West Pakistan, is hereby repealed.

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