PROVINCIAL EMPLOYEES’ SOCIAL SECURITY ORDINANCE, 1965

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Provincial Employees’ Social Security 
1965: Ordinance X 
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. 
 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 
THE PROVINCIAL EMPLOYEES’ SOCIAL SECURITY 
ORDINANCE, 1965 
(X of 1965) 
 
Contributions 
 20. Amount and payment of contributions. 
20A. Self-assessment scheme. 
 21. Records and returns by employers. 
 22. Officials of Institution to check employer’s books. 
 23. Increase of unpaid contributions and recovery of contributions, et c., as 
arrears of land revenue. 
 24. Safeguard of secured person 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. Funeral grant. 
 38. Medical care during sickness and maternity. 
38A. 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. 
43-A. Financial benefits 
 44. Medical care in the case of employment injury. 
 45. Content 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. 
54A. Extent of benefits, etc. 
55. Recovery of amounts due. 
CHAPTER VA 
Medical Treatment of Domestic Servants 
55A. Medical treatment of domestic servants. 
CHAPTER VI 
Determination of Questions and Claims 
 56. Assessment of disablement. 
 57. Decisions on complaints, questions and disputes. 
 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, contributions and benefits. 
 72. Employers not to dismiss or punish employee during the period of 
sickness, etc. 
 73. Bar on benefits under other laws. 
 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. 
 82. Repeal. 
 
TEXT 
1
THE 
2
[PROVINCIAL] EMPLOYEES’ SOCIAL SECURITY ORDINANCE, 
1965 
(X of 1965) 
[17 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 3[for provision of financial benefits 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 4[for provision of financial benefits 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 circum stances 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 
5
[Provincial] Employees’ Social Security Ordinance, 1965. 
(2) It extends to the whole of 
6
[
7
[the Punjab]]. 
(3) It shall come into force at o nce, 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. 
                                                           
1This Ordinance was promulgated by the Governor of West Pakistan on May 14, 1965, published in the West Pakistan Gazette 
(Extraordinary), dated May 17, 1965, pp. 2195-2226, approved by the Provincial Assembly of West Pakistan on July  8, 1965, 
under clause (3) of Article 79 of the Constitution of the Islamic Republic of Pakistan (1962).  
2Substituted for the words “West Pakistan” by the Federal Adaptation of Laws Order,  1975 (P.O. No. 4 of 1975),  published in 
the Gazette of Pakistan (Extraordinary), Part I, dated August 1, 1975, pp. 435-467, Article 2(1) read with Schedule.  
3Inserted by the  Provincial Employees’ Social Security  (Amendment) Act 202 5 (XXXVII of 2025) , published in the Punjab 
Gazette (Extraordinary), dated: 30 May 2025, p. 4769, s.2. 
4Inserted by the  Provincial Employees’  Social Security  (Amendment) Act 202 5 (XXXVII of 2025) , published in the Punjab 
Gazette (Extraordinary), dated: 30 May 2025, p. 4769, s.2. 
5Substituted for the words “West Pakistan” by the Federal Adaptation of Laws Order,  1975 (P.O. No. 4 of 1975),  published in 
the Gazette of Pakistan (Extraordinary), Part I, dated August 1, 1975, pp. 435-467, Article 2(1) read with Schedule.   
6Substituted for the words “West Pakistan, except the Tribal Areas” by the Order ibid.  
7Substituted for the word “Pakistan” by th e Provincial Employees’ Social Security (Amendment) Act , 20 13 (XXIV of 20 13), 
published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 2. 
2. Definitions.– In this Ordin ance, 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; 
(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 
3
[twenty-one] years 
dependent upon the secured person 4
[:] 
5
[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 p rovided in 
the regulations, has permanently reduced or is likely to reduce permanently a 
secured person earning capacity, and disablement shall be “minor” where the loss of 
earning capacity 
6
[is less than twenty per centum], “partial” where the loss of ear ning 
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; 
7
[(7a) “domestic servant” means any person working whole time in  connection 
with the work of any house-hold for any consideration whether in cash or in kind;] 
8
[(8) “employee” means any person employed, whether directly or through 
any other person for wages or otherwise to do any skilled or unskilled, supervisory, 
clerical, manual or other work in, or in connection with the affairs of an industry or 
                                                           
1Omitted the comma and words “, and includes any amount payable by or on behalf of the employee” by the Labour Laws (Amendment) 
Ordinance, 1972 (IX of 1972), published in the Gazette  of Pakistan (Extraordinary), dated April 13, 1972, pp. 485-519, s. 2 read with 
First Schedule, Serial No. 4.  
2Inserted by the Labour Laws (Amendment) Act,  1994 (XI of 1994),  published in the Gazette of Pakistan (Extraordinary), Part I, dated 
June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4.  
3Substituted for the word ”sixteen” by the Act ibid.  
4Substituted for semi-colon “;” by the Act ibid. 
5Added by the Act ibid. 
6Substituted for the words “ranges from five per centum  to twenty per centum ” by the West Pakistan Employees’ Social Security 
(Amendment) Ordinance, 1959 (XLVII of 1969), published in the Gazette of West Pakistan (Extraordinary), dated December 6, 1969, 
pp. 2193-2194, s. 2. 
7Inserted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette  of Pakistan (Extraordinary), dated 
April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
8Substituted by the Provincial Employees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazette of 
Pakistan (Extraordinary), Part I, dated October 29, 2002, pp. 1673-1675, s. 2(a). 
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; 
1
[(e) * * * * * * * * *    ] 
2
[(f) any person employed on wages exceeding the wages determined by 
the Government under section 71: 
Provided that a n employee shall not cease to be an employee for the sole 
reason that his monthly wages exceed the wages determined by the Government 
under section 71 of the Ordinance;] 
(9) “employer” means in the case of works executed or undertakings 
carried on by any c ontractor 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; 
3
[(14) “Government” means Government of the Punjab;] 
(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 Emp loyees’ Social Security Institution 
established under section 3; 
                                                           
1Omitted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette  of Pakistan (Extraordinary), dated 
April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
2Substituted by the Provincial Employees’ Social Security (Amendment) Act 2019 (XXIV of 2019)  (w.e.f. 13.10.2019), published in the 
Punjab Gazette (Extraordinary), dated December 13, 2019, pp. 2539 -2540, s.  2 which was earlier substituted by the Provincial 
Employees’ Social Security (Amendment) Act 2013 (XXIV of 2013), published in the Punjab Gazette (Extra ordinary), dated December 
13, 2013, pp. 1793-1795, s. 2. 
3Substituted by the Provincial Employees’ Social Security (Amendment) Act , 20 13 (XXIV of 20 13), published in the  Punjab 
Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 3(b), which had earlier been substituted for the words 
“Government of West Pakistan” by the Federal Adaptation of Laws Order, 1975 (P.O.  No. 4 of 1975)  (w.e.f. 1.8.1975 ), 
published in Gazette of Pakistan (Extraordinary), dated August 1, 1975, pp. 435-467, Article 2 read with Schedule.  
(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 con tributions are 
or were payable under this Ordinance; 
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 secured under this Ordinance 
2
[***] 
and the employer undertakes to pay a contribution in respect of them 
3
[at the fixed 
rate of 
4
[
5
[six percent of the wage limits determined by the Government under section 
71]]] 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 
6
[Punjab Minimum Wages Act 2019 (XXVIII of 
                                                           
1Inserted by the Labour Laws (Amendment) Ordinance , 2001 (LIII of 20 01) (w.e.f. 1.7.2001) , published in the Gazette of 
Pakistan (Extraordinary), Part I, dated October 6, 2001, pp. 1475-1481, s. 2 read with Schedule, Serial No. 4.  
2Omitted the words, figures and commas “as on 30 th June, 2001,” by the Provincial Employees’ Social Security (Amendment) 
Ordinance, 2002 (CIV of 2002), published in the Gazette of Pakistan (Extraordinary), Part I, dated October 29, 2002, pp. 1673 -
1675, s. 2(c)(i).  
3Substituted for the words “up to a maximum amount of three hundred fifty rupees” by the Provincial Employees’ Social Security 
(Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazette of Pakistan (Extraordinary), Part I, dated October 29, 
2002, pp. 1673-1675, s.2(c)(ii).  
4Substituted for the words “two hundred ten” by the Finance Act, 2008 (I of 2008) (w.e.f. 1.7.2008), published in the Gazette of 
Pakistan (Extraordinary), Part I, dated June 27, 2008, pp. 43-427, s. 3(1)(b). 
5Substituted for the word s “three hundred and sixty rupees” by the Provincial Employees’ Social Security (Amendment) Act , 
2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 3(c).  
6Substituted by the Provincial Employees’ Social Security ( Second Amendment) Act, 2026 (XXXI of 2026), published in the  
Punjab Gazette (Extraordinary), dated May 13, 2026, p. 6037, s. 2.  
  
2019)] 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 Ordinanc e, 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. 
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 thing s 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 w hether 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, Go vernment of the 
Punjab or a person who is or has been a Judge of the High Court or 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;] 
                                                           
1Substituted by the West Pakistan Employees’ Social Security (Punjab Amendment) Act, 1973 (V of  1973), published in the Punjab 
Gazette (Extraordinary), dated February 26, 1973, s. 2. 
(b) 1[five] persons to represent Government, one each respectively from the 
Departments o f Labour, Industries, Healt h 
2
[, Finance and Planning and 
Development Board]; 
3
[(c) three persons to represent the employers, including at least one 
woman; and 
(d) three persons to represent the secured persons, including at least one 
woman.] 
4
[(e) 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 chos en 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– 
(1) to approve the budget estimates, the audited accounts and the a nnual 
report of the Institution for submission to Government  in accordance with the 
provisions of this Ordinance; and 
(2) 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. 
(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 a second or casting vote. 
                                                           
1Substituted for the word "four" by the Provincial  Employees’ Social Security (Amendment) Act, 2026 (XXII of 2026), published in the 
Punjab Gazette (Extraordinary), dated May 06, 2026, pp.5833-5834, s.2 (a). 
2Substituted for the words "and Finance" by the Provincial Employees’ Social Security (Amendment) Act, 2026 (XXII of 2026), published 
in the Punjab Gazette (Extraordinary), dated May 06, 2026, pp.5833-5834, s.2 (b). 
3Substituted by the Punjab Fair Representation of Women Act 2014 (IV of 2014), published in the Punjab Gazette (Extraordinary), dated 
March 12, 2014, pp. 2733-2744, s. 2 read with Schedule, Serial No. 6. 
4Substituted by the West Pakistan Employees’ Social Security (Punjab Amendment) Ordinance, 1971 (X of 1971), published in the 
Punjab Gazette (Extraordinary), dated May 29, 1971, pp.577-A-577-B, s.2. 
(4) The meetings of the Governing Body sh all 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 authe nticated 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 persistentl y 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 cause why it should not be superseded, and 
shall consider any explanation or objection which it submits. 
(2) Upon the publication of a notification under sub -section (1), the persons 
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 suc h 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 a 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 
2
[(d) * * * * * * * * *   ] 
3
[(e) is a member of the staff of the Institution other than the Commissioner 
and the Medical Adviser; or] 
(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 
                                                           
1Substituted for the word “the” by the West Pakistan Employees’ Social Security (Punjab Amendment) Ordinance,  1971 (X of 
1971), published in the Punjab Gazette (Extraordinary), dated May 29, 1971, pp. 577-A-577-B, s. 3. 
2Deleted by the West Pakistan Employees’ Social Security (Punjab Amendment) Act, 1973 (V of 1973), published in the Punjab 
Gazette (Extraordinary), dated February 26, 1973, s. 3. 
3Substituted by the West Pakistan Employees’ Social Security (Punjab Amendment) Ordinance, 1971 (X of 1971), published in 
the Punjab Gazette (Extraordinary), dated May 29, 1971, pp. 577-A-577-B, s. 4. 
(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 o f 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 leave 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 is 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, 
1
[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 tr eatment 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 Boards .– (1) The Institution shall appoint 
Medical Practitioners and Medi cal Boards in such Social Security Areas and in such 
manner as may be provided by regulations. 
                                                           
1Substituted for the word “Government” by the Provincial Employees’ Social Security (Amendment) Act , 2013 (XXIV of 2013), 
published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 4.  
(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. 
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 acti ng, 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 contribution at 
such times, 
1
[at the rate of six per cent] and subject to such conditions as may be 
prescribed 
2
[:] 
  
3
[Provided that no contribution shall be payable on so much of an employee’s 
wages as is in excess of 
4
[the wages determined by the Government under section 
71] 
5
[:]] 
                                                           
1Substituted for the words “at such rate not more than six per cent” by the Provincial Employees’ Social Security (Amendment) 
Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 5(a) 
which was inserted by the Finance Act, 2008 (I of 2008) (w.e.f. 1.7.2008), published in the Gazette of Pakistan (Extraordinary), 
Part I, dated June 27, 2008, pp. 43-427, s. 3(2)(a). 
2Substituted for full -stop “.” by the Labour Laws (Amendment) Act,  1994 (XI of 1994),  published in the Gazette  of Pakistan 
(Extraordinary), Part I, dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
3Added by the Act ibid. 
4Substituted for the words “four hundred rupees per day or ten thousands rupees per month” by the Provincial Employees’ 
Social Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 
2013, pp. 1793-1795, s. 5(b).  
5Substituted by the Provincial Employees’ Social Security ( Second Amendment) Act, 2026 (XXXI of 2026), published in the  
Punjab Gazette (Extraordinary), dated May 13, 2026, p. 6037, s. 3.  
 
1[Provided further that the contributions paid and pay able from the first day of 
July, 2022 in accordance with the minimum wages notified under the Punjab 
Minimum Wages  Act 2019 (XXVIII of 2019) shall be deemed to have validly been 
paid and payable under this Ordinance.] 
2
[(2) * * * * * * * * *   ] 
3
[(3) The employer shall not be entitle d, to deduct 
4
[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.] 
5
[(4) * * * * * * * * *   ] 
(5) For the purpose of determining the amo unt of the contribution payable, 
daily wages shall be calculated in such manner as may be provided by regulations. 
(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. 
6
[(7) * * * * * * * * *   ] 
(8) In the case of construction work the owner of the building shall 
guarantee the payment of contributions by the contractor. 
(9) In the case of works executed or undertakings carried on on behalf of 
the State by a contractor or licensee, the competent public authority shall, before 
final settlement of the claims of the con tractor or licensee 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. 
 
7
[20A. Self-assessment scheme .– (1) Notwithstanding anything contained in this 
Ordinance, an employer who opts for the self -assessment scheme shall be liable to 
pay to the Institution a contribution 
8
[of 
9
[
1
[six percent of the wage limits determined 
by the Government under section 71]]] per month per secured employee. 
                                                           
1Added by the Provincial Employees’ Social Security ( Second Amendment) Act, 2026 (XXXI of 2026), published in the Punjab 
Gazette (Extraordinary), dated May 13, 2026, p. 6037, s. 3.  
2Omitted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
3Substituted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972 ), published in the Gazette of Pakistan 
(Extraordinary), dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4.  
4Added by the Provincial Employees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazett e of 
Pakistan (Extraordinary), Part I, dated October 29, 2002, pp. 1673-1675, s. 3(b). 
5Omitted by the Labour Laws (Amendment) Act, 1994 (XI of 1994), published in the Gazette of Pakistan (Extraordinary), Part I, 
dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
6Omitted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
7Inserted by the Labour Laws (Amendment) Ordinance , 2001 (LIII of 20 01) (w.e.f. 1.7.2001) , published in the Gazette of 
Pakistan (Extraordinary), Part I, dated October 6, 2001, pp. 1475-1481, s. 2 read with Schedule, Serial No. 4. 
8Substituted for the words “upto maximum amount of three hundred fifty rupees” by the Provincial Employees’ Social Security 
(Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazette of Pakistan (Extraordinary), Part I, dated October 29, 
2002, pp. 1673-1675, s. 4. 
9Substituted for the words “two hundred ten” by the Finance Act, 2008 (I of 2008) (w.e.f. 1.7.2008), published in the Gazette of 
Pakistan (Extraordinary), Part I, dated June 27, 2008, pp. 43-427, s. 3(3). 
(2) The liability of an employer to pay contribution under the sel f-
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 e mployer an amount of 
twenty rupees per month as his share to the institution. 
21.  Records and returns by employers .– Every employer shall keep such 
records and shall submit to the Institution such returns, at such times, in such form 
and containing such p articulars 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, m ay, 
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 allow him to exam ine 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 secured 
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. 
  
2
[(4) No staff member of the Institution shall visit the premises of any 
establishment, opting for the self -assessment scheme under section 20A, for the 
purpose of checking of employer’s books, record, etc., during the period the self -
assessment scheme remains in operation.]  
                                                                                                                                                                                     
1Substituted for the words “three hundred and sixty rupees” by the Provincial Employees’ Social Security (Amendment) Act , 
2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 6(a). 
2Added by the Labour Laws (Amendment) Ordinance, 2001 (LIII of 2001) (w.e.f. 1.7.2001), published in the Gazette of Pakistan 
(Extraordinary), Part I, dated October 6, 2001, pp. 1475-1481, s. 2 read with Schedule, Serial No. 4. 
  
1
[(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 whi ch 
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 t he 
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 wit h the increase provided for under sub -section (1), may be 
recovered as arrears of land revenue. 
24. Safeguard of secured person 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.– 
2
[An] employer shall be entitled 
to the refund of any contribution paid to the Institution under the erroneous belief that 
it was payable 
3
[* * * *] 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: 
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 f ar 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 w riting, increase the employer’s rate of contribution; provided that such 
increase shall not exceed twenty per centum of the contribution otherwise payable. 
                                                           
1Added by the Provincial Employees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazette of 
Pakistan (Extraordinary), Part I, dated October 29, 2002, pp. 1673-1675, s. 5(b). 
2Substituted for the words “Every person or his” by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in 
the Gazette of Pakistan (Extraordinary), dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
3Omitted the words “in respect of such person” by the Ordinance ibid. 
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 b e 
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 p urposes 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 adminis trative 
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 accordan ce with sub -
section (4) of section 28 at such times, up to 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. 
(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 sources, 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 amendment, 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 o f 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 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 appr oval 
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 under 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 un der 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. 
1[(3) The accounts of the Institution shall be audited by the Auditor General 
of Pakistan and in addition thereto, the Governing B ody may also appoint a 
qualified Chartered Accountant or Chartered Accountant firm for audit of  accounts 
of the Institution.] 
(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. 
                                                           
1Substituted by the Provincial  Employees’ Social Secur ity (Amendment) Act, 2026 (XXII of 2026), published in the Punja b Gazette 
(Extraordinary), dated May 06, 2026, pp.5833-5834, s.3. 
 
33.  Annual Reports.– (1) The Institution shall, within six months after the 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 Institution, 
shall be published and copies thereof shall be made available for sale to the public. 
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 cer tified, 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 sick ness benefit at such 
rate as may be fixed by Government by notification, in consultation with the 
Institution, if during the six calendar months immediately preceding the date on 
which his incapacity of work was so certified, contributions in respect of hi m were 
paid or payable for not less than ninety days. 
1
[
2
[(2) A secured person shall be entitled to receive sickness benefit 
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– 
3
[(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.] 
(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 o r 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 c ontributions in respect of her were 
paid or payable for not less than one hundred and eighty days during the twelve 
                                                           
1Substituted by the West Pakistan Employees’ Social Security (Punjab Second Amendment) Ordinance, 1971 (XXVI of 1971), 
published in the Punjab Gazette (Extraordinary), dated December 13, 1971, pp. 1571-A-1571-B, s. 2.  
2Substituted by the West Pakistan Employees’ Social Security (Amendment) Act, 1973 (XV of 1973), published in the Gazette 
of Pakistan (Extraordinary), Part I, dated February 7, 1973, pp. 38-39, s. 2. 
3Substituted by the Labour Laws (Amendment) Act,  1994 (XI of 1994),  published in the Gazette  of Pakistan (Extraordinary), 
Part I, dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
calendar months immediately preceding the expected date of her confinement as 
certified by a medical practitioner authorised by the Institut ion 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 d ate of 
confinement. 
37.  
1
[Funeral 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 surviv ing widow, widows 
or needy widower, the person who provided for the funeral, shall, subject to 
regulations, be entitled to such funeral grant as may be provided in the regulations.] 
 
3
[(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: 
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 no twithstanding 
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 .– 
4
[(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 entit led to pre-natal 
confinement and post-natal medical care, if she is entitled to maternity benefit under 
section 36 or if, during the six calendar months immediately preceding her claim, 
contributions in respect of her were paid or payable for not less than ninety days. 
 
5
[38A. 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 de pendents shall be entitled to medical care for six months from the 
date of death of such secured person:  
                                                           
1Substituted for the words “Death grant” by the Provincial Employees’ Social Security (Amendment) Act, 2013 (XXIV of 2013), 
published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 7(i).  
2Substituted by the Act ibid., s. 7(ii). 
3Added by the Labour Laws (Amendment) Act,  1994 (XI of 1994),  published in the Gazette of Pakistan (Extraordinary), Part I, 
dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
4Substituted by the West Pakistan Employees’ Social Security (Amendment) Ordinance, 1969 (XLVII of 1969), published in the 
Gazette of West Pakistan (Extraordinary), dated December 6, 1969, pp. 2193-2194, s. 3. 
5Inserted by the Labour Laws (Amendment) Act, 1994 (XI of 1994), published in the Gazette of Pakistan (Extraordinary), Part I, 
dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
  Provided also that the deceased had been in employment of an establishment 
for not less than six months during two continuous seasons immediately pr eceding 
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, 
1
[* * *] 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 dea th of the recipient or 
when disablement ceases, or ceases to be total or partial disablement: 
Provided that if a disablement pension has been paid for five years it shall be 
payable for life. 
41.  Disablement gratuity .– (1) A secured person who sustains mi nor 
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. 
(2) Where a person receiving disabl ement 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) W here 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: 
                                                           
1Omitted the words and commas “other than the first three days,” by the Labour Laws (Amendment) Act,  1994 (XI of 1994),  
published in the Gazette of Pakistan (Extraordinary), Part I, dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial 
No. 4 which were earlier omitted by the West Pakistan Employees’ Social Security (Punjab Second Amendment) Ordinance, 
1971 (XXVI of 1971), published in the Punjab Gazette (Extraordinary), dated December 13, 1971, pp. 1571-A-1571-B, s. 3. 
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 th e 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 th e 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.]  
2
[(2-B) Where only father or mother is entitled to the survivor’s pension and 
the recipient dies leaving behind the other parent, such surviving parent shall be 
entitled to the survivor’s pension equal to the amount being received by the other 
parent at the time of the death of that parent subject to the condition that the 
surviving parent is the real father or mother of the deceased secured worker.] 
(3) Survivor’s pensions 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 
3
[(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 
4
[:]]  
5
[Provided that such age limit shall not apply to dependent unmarried 
daughters;]  
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). 
                                                           
1Added by the West Pakistan Employees’ Social Security ( Punjab Amendment) Act, 1975 (II of 1975), published in the Punjab 
Gazette (Extraordinary), dated March 2, 1975, pp. 133-C-133-D, s. 2.  
2Inserted by the Provincial Employees’ Social Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette 
(Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 8. 
3Substituted by the West Pakistan Employees’ Social Security (Punjab Second Amendment) Ordinance, 1971 (XXVI of 1971), 
published in the Punjab Gazette (Extraordinary), dated December 13, 1971, pp. 1571-A-1571-B, s. 4. 
“(c) where the survivor is a dependent child, upon his attaining the age of [twenty one] years;” 
The words in crotchet, however, have been substituted by the Labour Laws (A mendment) Act, 1994 (Federal Act XI of 1994), 
for “sixteen” and thereafter the following proviso has also been added: 
“Provided that such age limit shall not apply to dependent unmarried daughters;”. 
4Substituted for the “semi-colon” by the Labour Laws (Amendment) Act, 1994 (XI of 1994), published in the Gazette of Pakistan 
(Extraordinary), Part I, dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
5Added by the Act ibid. 
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 widower, 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. 
2[43-A. Financial  benefits.- Subject to the approval of the Government and 
availability of the funds, a secured person may be granted financial benefits, in such 
manner and to such extent as ma y be prescribed, for purchase of essential 
commodities from such outlets as notified by the Government.] 
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; 
3
[and] 
(b) it shall include dental care in addition to the services referred to in 
section 45 
4
[.] 
5
[(c) * * * * * * * * *   ] 
(2) A person in receipt of injury benefit, disablement pension for loss of 
earning capaci ty not less than fifty per centum  or 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 receiv ed by the secured person, for six months after the termination 
of the pension. 
45.  Content of medical care.– (1) Medical care shall include– 
(a) general practitioner care, including domici-liary visiting; 
(b) specialist care in hospitals for in -patients a nd out -patients and such 
specialist care as may be available outside hospitals; 
(c) essential pharmaceutical supplies as prescribed by a medical 
practitioner; 
(d) hospitalisation where necessary, including cases of pregnancy and 
confinement; 
(e) pre-natal confinement and post -natal care, either by medical 
practitioners or by qualified midwives. 
6
[(2) * * * * * * * * *   ] 
                                                           
1Substituted by the Act ibid. 
2Inserted by the Provincial Employ ees’ Social Security  (Amendment) Act 202 5 (XXXVII of 2025) , published in the Punjab 
Gazette (Extraordinary), dated: 30 May 2025, p. 4769, s.3. 
3Added by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette  of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
4Substituted for the semi-colon and word “; and” by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in 
the Gazette of Pakistan (Extraordinary), dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
5Omitted by the Ordinance ibid. 
6Ibid.  
46.  Manner of providing medical care .– (1) Regulations shall specify the 
manner in which medical care shall be provided. 
(2) The Institu tion 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 under 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 utilisation 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 person 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
[47-A. Establishment of medical and other institutions .–The Institution may, 
through the public -private partners hip mode 2[or on its own ], establish medical, 
dental, nursing, allied health or training institutions and, for the purpose, incur 
expenditure from the Fund 3[:]] 
 4[Provided that the medical, dental, nursing, allied health or training 
institutions establis hed under this section shall meet the requisite requirements of 
the relevant laws for the time being in force and relevant regulatory bodies of the 
Federal Government or the Government, as the case may be.] 
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 
                                                           
1Inserted by the Provincial Employees’ Social Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette 
(Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 9. 
2Inserted by the Provincial  Employees’ Social Secur ity (Amendment) Act, 2026 (XXII of 2026), published in the Punjab Gazet te 
(Extraordinary), dated May 06, 2026, pp.5833-5834, s.4 (a). 
3Substituted by the Pr ovincial Employees’ Social Secur ity (Amendment) Act, 2026 (XXII of 2026), published in the Punjab Gazet te 
(Extraordinary), dated May 06, 2026, pp.5833-5834, s.4 (b). 
4Added by the Provincial  Employees’ Social Secur ity (Amendment) Act, 2026 (XXII of 2026), published in the Punjab Gazet te 
(Extraordinary), dated May 06, 2026, pp.5833-5834, s.4 (b). 
  
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 no t 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 he shall be given the higher or highest 
of such benefits. 
(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 Ordinanc e 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 mis -
representation 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 cash 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 rec over, 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 a gent, the Institution shall be entitled 
to be indemnified by the person so liable. 
1
[54A. Extent of benefits, etc .– Notwithstanding anything contained in this Chapter, 
so much of wages of a secured persons as are in excess of 
2
[
3
[the wages determined 
by the Government under section 71 of the Ordinance]] 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. 
4
[CHAPTER VA 
Medical Treatment of Domestic Servants 
55A.  Medical treatment of domestic servants .– Every employer of a domestic 
servant shall be liable to provide at his own cost to the domes tic servant medical 
care to the extent mentioned in section 45.] 
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 med ical 
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 
5
[* * *]; or 
(b) the rate of wages or average daily wages of a secured person for the 
purposes of this 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 secu red 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 
                                                           
1Inserted by the Labour Laws (Amendment) Act, 1994 (XI of 1994), published in the Gazette of Pakistan (Extraordinary), Part I, 
dated June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
2Substituted for the words “one hundred and twenty rupees per day or three thousand rupees per month”  by the Provincial 
Employees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002), published in the Gazette of Pakistan (Extraordinary), 
Part I, dated October 29, 2002, pp. 1673-1675, s. 6. 
3Substituted for the words “two hundred rupees per day or five thousand rupees per month”by the Provincial Employees’ Social 
Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, 
pp. 1793-1795, s.10. 
4Inserted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
5Omitted by the Ordinance ibid. 
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 Institut ion 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 adduc ing 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 Social 
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. 
(3) A person shall not be appointed as a Judge of a Social Security Court 
unless he has– 
(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 he ar and 
decide appeals from decisions of the Institution under section 57 or reviews 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 appe al 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 transferr ed 
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 m eaning 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 b e 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; or  
(d) refuses to answer any question of the Social Security Court which he is 
bound to answer; or 
(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 
1
[five thousand] rupees. 
63.  Appearance by legal practitioners .– 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 examinatio n 
as a witness) may be made or performed by a legal practitioner or by an officer of a 
registered trade union authorised in writing by such person, or, with the permission 
of the Court by any other person so authorised. 
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 app eal 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 
                                                           
1Substituted for the word “fifty” by the Provincial Employees’ Social Security (Amendment) Act, 2013 (XXIV of 2013), published 
in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 11. 
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 payment 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 h e 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 a ny part of the 
1
[*] 
contribution; or 
(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 no n-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 
2
[up to ten thousand 
rupees but not less than two thousand rupees], or with both. 
67.  Prosecution.– (1) No prosecution under this Ordinance shall be instituted 
except with the previous sanction of t he Commissioner or of an officer authorised 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 Ordinanc e 
except on a complaint made in writing within six months of the date on which the 
offence was discovered. 
3
[
4
[(4) * * * * * * * * *  ]] 
CHAPTER VIII 
Miscellaneous 
                                                           
1Omitted the word “employer’s” by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of 
Pakistan (Extraordinary), dated April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4. 
2Substituted for the words “not exceeding one thousand rupees”  by the Provincial Employees’ Social Security (Amendment) 
Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 1793-1795, s. 12. 
3Added by the La bour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), dated 
April 13, 1972, pp. 485-519, s. 2 read with First Schedule, Serial No. 4.  
4Omitted by the West Pakistan Employees’ Social Security (Amendment) Act, 1973 (XV of 1973), published in the Gazette of Pakistan 
(Extraordinary), Part I, dated February 7, 1973, pp. 38-39, s. 4.  
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 f rom 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 areas or establish ments, 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 contained 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. 
1
[(2) For the purposes of sub -section (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 
2
[the wages 
determined by the Government under section 71 of the Ordinance].] 
(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 the provision of medical care under this Ordinance. 
(4) All provisions o f this Ordinance and rules or regulations relating to 
contributions, with the exception of section 26 and the rules made thereunder, shall 
apply to the special tax as if it were a contribution payable under section 20. 
71.  Review and modification of wage limits, contributions and benefits.– (1) 
In January of each year, the Governing Body shall review the wage limits 
3
[* * * *] 
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 
4
[* * * *] 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 
                                                           
1Substituted by the Labour Laws (Amendment) Act, 1994 (XI of 1994), published in the Gazette of Pakistan (Extraordinary), Part I, dated 
June 29, 1994, pp. 223-235, s. 2 read with Schedule, Serial No. 4. 
2Substituted for the words “one hundred and twenty rupees per day or three thousand rupees per month” by the Provincial Employees’ 
Social Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 2013, pp. 
1793-1795, s. 13. 
3Omitted the words brackets and figures “specified in clause (f) of subsection (8) of section 2” by the Provincial Employees’ 
Social Security (Amendment) Act, 2013 (XXIV of 2013), published in the Punjab Gazette (Extraordinary), dated December 13, 
2013, pp. 1793-1795, s. 14. 
4Ibid. 
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 laws .– When a person is entitled to any of the 
benefits 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 his employer in any Civil Court in respect of employment 
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 publi c 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 matters 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. 
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 th ereof 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 rules
1
 to carry out the purposes of this 
Ordinance. 
(2) In particular and wit hout 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 organis ations 
of employers and employees recognised by Government for that 
purpose; 
(ii) powers and functions of the Governing Body; 
                                                           
1The rules titled “the West Pakistan Employees’ Social Security (Financial and Accounting) Rules, 1966” issued by the Labour 
Department vide Notification No. LAB-III-II-II/SS/GG, dated October 12, 1966, published in the Gazette of West Pakistan, Part I, dated 
October 28, 1966, p. 1289. 
(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 
1
[* * *]; 
(vi) percentage or amount by which contributions and special tax in arrears 
may be increased under section 23; 
(vii) increase of 
2
[*] contri bution 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; 
(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 provisions 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 b e 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; 
                                                           
1Omitted the comma and words “, and the ratio of the employer’s contribution to the employee’s con tribution” by the Labour Laws 
(Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), dated April 13, 1972, pp.  485-519, s. 
2 read with First Schedule, Serial No. 4.  
2Omitted the word “employer’s” by the Ordinance ibid. 
(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 a nd 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, tran sfer, 
promotion, dismissal and other matters affecting the staff of the 
Institution; 
1
[(xi) * * * * * * * * *   ] 
(xii) the manner in which daily wages shall be calculated for the purpose of 
determining the contribution payable; 
(xiii) determination of wag es 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; 
(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 diseases to which a 
secured person shall be entitled; 
                                                           
1Omitted by the Labour Laws (Amendment) Ordinance, 1972 (IX of 1972), published in the Gazette of Pakistan (Extraordinary), 
dated April 13, 1972, pp.485-519, s. 2 read with First Schedule, Serial No. 4.  
(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 a ctuarial 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 hire d 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 cer tain 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), the Mines Maternity Benefit 
Act, 1941 (XIX of 1941), the West Pakistan Mater nity Benefit Ordinance, 1958 (W. 
P. Ord. XXXII of 1958), or under any other law shall not be payable in respect of any 
employment on or after the appointed day in respect 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. 
82.  Repeal.– The Employees’ Social Insurance Ordinance, 1962 (XXII of 1962), 
in its application to the Province of West Pakistan, is hereby repealed.