Provincial Employees' Social Security Ordinance, 1965

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 THE PROVINCIAL EMPLOYEES’ SOCIAL SECURITY 
ORDINANCE, 1965 
 
 
 
 
 
CONTENTS 
 
     
CHAPTER I 
 
PRELIMINARY 
 
1. Short title, extent, commencement and application. 
 
2. Definitions. 
 
CHAPTER II 
 
ORGANISATION 
 
3. Establishment and incorporation of Employees’ Social Security Institution. 
 
4. Management. 
 
5. Governing Body. 
 
6. Powers and functions of the Governing Body. 
 
7. Meetings of the Governing Body. 
 
8. Authentication of orders, etc. 
 
9. Supersession of the Governing Body. 
 
10. Fees and allowances. 
 
11. Resignation. 
 
12. Disqualifications. 
 
13. Filling of casual vacancies. 
 
14. Head Office. 
 
15. Medical Advisor. 
 

 
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16. Duties of Medical Advisor.17. Medical practitioners and Medical Boards. 
 
18. Commissioner and Vice-Commissioner. 
 
19. Officers and staff of the Institution. 
 
CHAPTER III 
 
 
CONTRIBUTIONS 
 
20. Amount and payment of contributions. 
 
21. Records and returns by employees. 
 
22. Officials of Institution to check employer’s books. 
 
23. Increase of unpaid contributions and recovery of contributions, etc., as arrears of land 
revenue. 
 
24. Safeguard of secured persons’ rights in default of payment of contributions by 
employer. 
 
25. Return of contributions paid erroneously. 
 
26. Increase of contributions where safety rules not observed. 
 
27. Extinguishment of claims to contributions. 
 
CHAPTER IV 
 
FINANCE AND AUDIT 
 
28. Employees’ Social Security Fund. 
 
29. Security reserves. 
 
30. Investments and loans. 
 
31. Budget. 
 
32. Accounts and Audit. 
 
33. Annual Reports. 
 
34. Valuation of assets and liabilities. 
 
CHAPTER V 
 
BENEFITS 
 
35. Sickness benefit.36. Maternity benefit. 
 
37. Death grant. 
 
38. Medical care during sickness and maternity. 
 
 
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38-A. Medical care of dependents, etc. 
 
39. Injury benefits. 
 
40. Disablement pension. 
 
41. Disablement gratuity. 
 
42. Survivor’s Pension. 
 
43. Death grant in case of death while in receipt of injury benefit or total disablement 
pension. 
 
44. Medical care in the case of employment injury. 
 
45. Extent of medical care. 
 
46. Manner of providing medical care. 
 
47. Institution’s power to promote measures for health, welfare etc. of secured persons. 
 
47-A Establishment of medical and other institutions. 
 
48. Manner of claiming benefit. 
 
49. Benefit not assignable or attachable. 
 
50. Exemption from stamp duty. 
 
51. Non-duplication of benefits. 
 
52. Repayment of benefit improperly received. 
 
53. Institution’s right to recover damages from employer in certain cases. 
 
54. Institution’s right to be indemnified in certain cases. 
 
54-A. Extent of benefits, etc. 
 
55. Recovery of amounts due. 
 
CHAPTER V-A 
 
MEDICAL TREATMENT OF DOMESTIC SERVANTS 
 
55-A. Medical treatment of domestic servants. 
 
 
CHAPTER VI 
 
DETERMINATION OF QUESTIONS AND CLAIMS 
 
56. Assessment of disablement. 
 
57. Decisions on complaints, questions and disputes. 
 
 
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58. Review on account of new facts. 
 
59. Appeal to Social Security Court. 
 
60. Constitution of Social Security Court. 
 
61. Jurisdiction of Social Security Courts. 
 
62. Powers of Social Security Court, etc. 
 
63. Appearance by legal practitioners. 
 
64. Appeal. 
 
65. Stay of payment pending appeals. 
 
CHAPTER VII 
 
OFFENCES AND PENALTIES 
 
66. Offences. 
 
67. Prosecution. 
 
CHAPTER VIII 
 
MISCELLANEOUS 
 
68. Contributions, etc., to have priority over other debts. 
 
69. Exemption from taxes. 
 
70. Levy of special tax. 
 
71. Review and modification of wage limits, contribution and benefits. 
 
72. Employers not to dismiss or punish employee during the period of sickness, etc. 
 
73. Bar on benefits under other law. 
 
74. Suit for damages in a Civil Court. 
 
75. Members and servants of the Institution to be public servants. 
 
76. Removal of difficulties. 
 
77. Delegation of powers. 
 
78. Protection of proceedings of the Governing Body. 
 
79. Power to make rules. 
 
80. Power to make regulations. 
 
81. Supersession of certain laws, etc. 
 
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82. Repeal. 
 
83. Savings. 
 
84. Repeal. 
 
  
 
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1THE 2[PROVINCIAL] EMPLOYEES’ SOCIAL 
SECURITY ORDINANCE, 1965 
 
(W.P. Ordinance X of 1965) 
[17th 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 the following 
Ordinance:- 
CHAPTER I 
PRELIMINARY 
1. Short title, extent, commencement and application. – (1) This Ordinance may be called 
the 2[Provincial] Employees’ Social Security Ordinance, 1965. 
(2) It extends to the whole 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. 
 
2. Definitions .– 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; 
 
1This Ordinance was promulgated by the Governor of West Pakistan on 14th May, 1965; approved by the Provincial Assembly of West 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 
(Extraordinary), dated 8th July, 1965, pages 3579-3610. 
2Substituted by P.O. 4 of 1975, for “West Pakistan”. 
3Substituted ibid., for “West Pakistan, except the Tribal Areas”. 
 
 
  
 
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(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 the institution by an employer in respect 
of an employee, 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 unmarried 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 authorised 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 or 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 
mensem2[:] 
 
 
 
1The words “and includes any amount payable by or on behalf of the employee” deleted by the Ordinance IX of 1972. 
2Inserted, Subs. and Added by the Labour Laws (Amendment) Act, 1994 (Act No. XI of 1994). 
3Substituted by W.P. Ord. XLVII of 1969, for the words “ranges from five per centum to twenty per centum”. 
4Ins. & Deleted by Ord. IX of 1972. 
5Subs. by Ord. IV of 2002, s.2. 
6Subs. by Ord. No. LIII of 2001, s.2+Sch. Which previously amended by Act No. XI of 1994, s.2, for “three thousand”. 
7Subs. by Act No. I of 2008, s.3 (w.e.f. 1-7-2008). 
 
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1[Provided that an employee shall not cease to be an employee for the reason that his 
monthly wages exceed 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 includes 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 institution; 
 
(14) “Government” means the 4[Federal 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; 
 
1Proviso added by Act No. XI of 1994, s.2. 
2Subs. by Ord. No. LIII of 2001, s.2+Sch. 
3Subs. by Act No. I of 2008, s.3 (w.e.f 1-7-2008). 
4Ins. by Ord. No. CIV of 2002, s.2.  
5Substituted 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 1st 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 contribution in respect of them 2[at the fixed rate of 3[three 
hundred and sixty] rupees] per month per secured employee;] 
 
(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 in 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 or 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 as bonus by the employer; 
 
(31) “week” means a period of seven days commencing at midnight of Sunday night. 
 
CHAPTER II 
ORGANISATION 
 
3. Establishment and incorporation of Employees’ Social Security Institution .– (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 incur out of the said Fund such expenditure as may be necessary. 
 
1Inserted by Ordinance LIII of 2001, s.2. 
2Omitted & Subs. by Ord. No. CIV of 2002, s.2. 
3Subs. by Finance Act I of 2008, s.3. (w.e.f 1-7-2008). 
 
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4. Management.– (1) The general direction and superintendence 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 functions, 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. 
 
5. Governing Body.– (1) The Governing Body shall consist of the following members to be 
appointed by Government, 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 employers; 
 
(d)  three persons to represent secured persons; 
 
(e)  2[the Commissioner and the Medical Adviser, ex-officio.] 
 
(2) Members to be appointed under 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 appointment is notified under sub-section (1). 
 
6. Powers and functions of the Governing Body .– 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 have 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. 
 
7. Meetings of the Governing Body.– (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. 
1Subs. by Pb Act V of 1973. 
2Subs. by Pb Ord. Xof 1971, for “the Medical Advicsor, ex-officio”. 
 
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(2) To constitute a quorum at a meeting of the Governing Body, the number of members present 
shall 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. 
 
8. Authentication of orders, etc .– All orders and decisions of the Governing Body shall be 
authenticated by the signature of the Chairman or of such other member as may have been authorised 
by the Governing Body in writing for the purpose. 
 
9. Supersession of the Governing Body.– (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. 
 
10. Fees and allowances .– Members shall receive such fees and allowances as may be 
prescribed. 
 
11. Resignation.– 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. 
 
12. Disqualifications.– (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 being a Director) of a company; 
or 
 
1Subs. by Pb Ord. X of 1971, for “the”. 
2Del. by Pb Act V of 1973. 
3Subs. by Pb Ord. X of 1971. 
 
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(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 should not be removed, and shall 
consider any explanation or objection which he submits. 
 
13. Filling of casual vacancies.– 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. 
 
14. Head Office.– 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. 
 
15. Medical Advisor.– As soon as may be, *{the Institution}* shall appoint a Medical Advisor 
having the prescribed qualifications. 
 
16. Duties of Medical Advisor.– The Medical Advisor shall– 
 
(a)  advise the Governing Body on matters relating 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. 
 
17. Medical practitioners and Medical Board s.– (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 
allowances to be paid to such practitioners or the members of such boards, shall be such as may be 
provided by regulations. 
 
 
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18. Commissioner and Vice-Commissioner.– (1) There shall be a Commissioner and a Vice- 
Commissioner of the Institution both to be appointed 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 this 
Ordinance, the rules and the regulations. 
 
19. Officers and staff of the Institution.– 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 
CONTRIBUTIONS 
 
20. Amount and payment of contributions .– (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 conditions 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] thousand 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. 
 
1Ins. And Subs. by Finance Act No. I of 2008, S.3 (w.e.f 1-7-2008). 
2Subs., added & omitted bt Act IX of 1994, s.4+sch. 
3Subs. by Ord. No. CIV of 2002, s.3. 
4Del. & Subs. by Ord. IX of 1972. 
 
 
 
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(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 such 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 this 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 twenty rupees per month as his 
share to the Institution.] 
 
21. Records and returns by employees. – 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. 
 
22. Officials of Institution to check employer’s books .– (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 any 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  
 
 
1Ins. by Ord. LIII of 2001, s.2+Sch. 
2Subs. by Ord. CIV of 2002, s.2. 
3Subs. by Finance Act No. I of 2008, s.3(w.e.f 1-7-2008). 
  
 
 
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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 Ordinance. 
 
(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-assessment 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.] 
 
23. Increase of unpaid contributions and recovery of contributions, etc., as arrears of land 
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 remedy, the amount of the contributions due, together with 
the increase provided for under sub-section (1), may be recovered as arrears of land-revenue. 
 
24. Safeguard of secured persons’ rights in default of payment of contributions by 
employer.– In the event 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. 
 
25. Return of contributions paid erroneously.– 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. 
1Added by Ord. LIII of 2001, s.2+Sch. 
2Subs. & added by Ord. CIV of 2002, s.5. 
3 Subs. by Ord. IX of 1972, for “Every person or his”. 
4The 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 
possible, 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. 
 
26. 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. 
 
27. Extinguishment of claims to contributions .– Any claim of the Institution for unpaid 
contributions shall be extinguished in the manner provided in the regulations. 
 
CHAPTER IV 
FINANCE AND AUDIT 
 
28. Employees’ Social Security Fund.– (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 purposes 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. 
 
29. Security reserves.– 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. 
 
30. Investments and loans.– (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. 
 
31. Budget.– (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 of 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 
section 70, and other sources, if any. 
 
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 medical 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. 
 
32. Accounts and Audit .– (1) The Institution shall maintain accounts of its income and 
expenditure and of its assets and liabilities in such form and manner as may 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 
Government, 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 
require, 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. 
 
33. Annual Reports .– (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 
 
34. Valuation of assets and liabilities.– 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 
 
35. Sickness benefit .– (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)  three 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 benefit.] 
 
36. Maternity benefit.– 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 regulations 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. 
 
37. Death grant.– 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: 
 
1Subs. by Act XV of 1971. 
2Subs. 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.] 
 
38. Medical care during sickness and maternity.– 1[(1) A secured person and his dependents 
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 due 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 secured 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.] 
 
39. Injury benefits .– 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. 
 
40. Disablement pension .– (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 disablement 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 
 
41. Disablement gratuity .– (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. 
 
1subs. by W.P. ord. XLVII of 1969 
2 Ins. by Act XI of 1994, s. 2 + sch. 
 
 
 
 
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. 
 
42. Survivor’s Pension.– (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 alive, 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;] 
 
 
1Added by P.b Act II of 1975. 
2Subs. 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). 
 
43. Death grant in case of death while in receipt of injury benefit or total disablement 
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. 
 
44. Medical care in the case of employment injury.– (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. 
 
45. Extent of medical care.– (1) Medical care shall 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[*   *  *  *  *  *  * ] 
 
46. Manner of providing medical care .– (1) Regulations shall specify the manner in which 
medical care shall be provided. 
 
 
1Subs. by Act XI of 1994, s. 2 + Sch. 
2Added  and del.by Ord. IX of 1972 
3 the word “and”, del. Ibid. 
4Del. Ibid. 
 
 
 
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. 
 
47. 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. 
 
48. Manner of claiming benefit .– (1) All claims for benefits under this Ordinance shall be 
made within 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. 
 
49. Benefit not assignable or attachable.– (1) The right to receive any payment in respect of 
any benefit under this Ordinance shall not be transferable or assignable. 
 
(2) No benefit payable under this Ordinance shall be liable to attachment or sale in execution 
of any decree or order of any Court. 
 
50. Exemption from stamp duty.– 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. 
 
51. Non-duplication of benefits.– (1) A secured person shall not be paid, for the same period, 
more than one of the benefits referred to in sections 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 benefit or maternity benefit or injury benefit for any 
day for which he receives wages. 
 
52. Repayment of benefit improperly received.– (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. 
 
53. Institution’s right to recover damages from employer in certain cases .– Where, 
according to the finding of a Court, an employment injury was sustained by a secured person by reason 
of a wrongful 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 Ordinance and such actuarial value shall be 
determined in accordance with the regulations. 
 
54. Institution’s right to be indemnified in certain cases.– Where a secured person is entitled 
to receive or to recover, but has not received or recovered, from any person, 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 indemnified 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]. 
 
55. Recovery of amounts due.– 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 mentioned in section 
45.] 
 
 
 
 
1Ins. by Act XI of 1994, s. 2 + sch. 
2Subs. by Ord. CIV of 2002, s. 6. 
3Added by Ord. IX of 1972. 
 
 
 
Page 24 of 32 
 
CHAPTER VI 
DETERMINATION OF QUESTIONS AND CLAIMS 
 
56. Assessment of disablement .– 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. 
 
57. Decisions on complaints, questions and disputes .– 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 under 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. 
 
58. Review on account of new facts.– 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. 
 
59. Appeal to Social Security Court.– 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. 
 
60. Constitution of 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– 
 
 
1The 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. 
 
61. Jurisdiction of Social Security Courts.– (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 Procedure, 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 deliver 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 
required 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 fifty rupees. 
 
63. Appearance by legal practit ioners.– 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. 
 
64. Appeal.– (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. 
 
65. Stay of payment pending appeals. – 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; Or 
 
(ii) produces or furnishes, or causes or knowingly allows to be produced or 
furnished, any document 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 provision of this Ordinance, be punished with imprisonment which may extend to three 
months, or with fine not exceeding one thousand rupees, or with both. 
 
67. Prosecution.– (1) No prosecution under this Ordinance shall be instituted except with the 
previous sanction 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 this 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 
 
68. Contributions, etc., to have priority over other debts.– In any proceedings of insolvency 
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. 
 
69. 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. 
 
70. Levy of special tax. – (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 subsection (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 per month. 
1Del. by Act of1973. 
21Subs. 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. 
 
71. Review and modification of wage limits, contribution and benefits .– (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. 
 
72. Employers not to dismiss or punish employee during the period of sickness, etc .– (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 benefit 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. 
 
73. Bar on benefits under other law .– 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. 
 
74. Suit for damages in a Civil Court .– 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. 
 
75. Members and servants of the Institution to be public servants .– 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). 
 
76. Removal of difficulties .– (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 direction 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. 
 
77. Delegation of powers.– 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. 
 
 
1Subs. by Act XI of 1994, S.2+ Sch. 
 
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78. Protection of proceedings of the Governing Body .– 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. 
 
79. Power to make rules. – (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 the 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 budget 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; 
1See Gazette of W.P. 1966, Part-I Page 1289. 
2The words “and the ratio of the employer’s” contribution to the employees contribution”, del. by Ord. IX of 1972     
3The 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. 
 
80. Power to make regulations .– (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 Advisor 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 to appointment, transfer, promotion, 
dismissal and other matters affecting the staff of the Institution; 
 
(xi) 1[*  *  *  *  *  *  * ] 
 
(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; 
 
1Del. 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, information 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 benefit 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. 
 
81. Supersession of certain laws, etc .– 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 
 
 
82. Repeal.– The Employees’ Social Insurance Ordinance, 1962 (XXII of 1962), in its 
application to the Province of West Pakistan, is hereby repealed. 
 
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