PROVINCIAL ASSEMBLY O F SINDH

NOTIFICATION
KARACHI, THE 19TH JANUARY, 2015

NO.PAS/Legis-B-23/2014- The Sindh Employees’ Old-Age Benefits Bill, 2014 having

been passed by the Provincial Assembly of Sindh on 10th December, 2014 and assented
to by the Governor of Sindh on 12th January, 2015 is hereby published as an Act of the
Legislature of Sindh.

THE SINDH EMPLOYEES’ OLD-AGE BENEFITS ACT, 2014.

SINDH ACT NO. X OF 2015.

AN
ACT
to repeal and re-enact the law relating to old-age benefits for
the persons employed in industrial, commercial and other organizations
in the Province of Sindh.

WHEREAS it is expedient to repeal and re-enact the law Preamble.

relating to old-age benefits for the persons employed in industrial,
commercial and other organizations in the Province of Sindh and to
provide for matters connected therewith or ancillary thereto;

It is hereby enacted as follows:-

CHAPTER – I
PRELIMINARY

1. (1) This Act may be called the Sindh Employees’ Old-Age Benefits Short title, extent,
Act, 2014. commencement and
application.
(2) It extends to the whole of the Province of Sindh.
(3) It shall come into force at once.
(4) It applied to every industry or establishment –
(i) wherein five or more persons are employed by the
employer directly or through any other person whether
on behalf of himself or other person or were so
employed on any day during the preceding twelve
months and shall continue to apply to every such
industry or establishment even if the number of persons
employed therein is, at any time after this Act becomes
applicable to it, reduced to less than five;
(ii) wherein less than five persons are employed if such
industry or establishment voluntarily applies for
application of this Act and this Act shall apply to such
industry or establishment from the date of submission of
an application by such industry or establishment; or

 
 (iii) which the Government may, by notification in the
official Gazette, specify in this behalf.

2. In this Act, unless the context otherwise requires - Definitions.

(a) “benefits” means old-age pension, invalidity pension,
survivor’s pension, old age grant and such other payments
as may be determined by Government from time to time;

(b) “Board” means the Board of Trustees constituted under

section 7;

(c) “Chairperson” means the Chairperson of the Institution;

(d) “contribution” means the sum of money payable to the

Institution by the employer or by Government in respect
of an insured person under the provisions of this Act;

(e) “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 establishment, under a
contract of service or apprenticeship, whether written or
oral, express or implied, and includes such person when
laid off:
Provided further that a director of a limited
company or of a corporation set up under any law shall
not be treated as an employee under this Act, irrespective
of his wages or emoluments;

(f) “employer”, in relation to any industry or establishment,

means any person who employs, either directly or through
any other person, any employee, and includes -
(i) in the case of an individual, an heir, successor,
administrator or assign;
(ii) a person who has ultimate control over the affairs of
an industry or establishment or entrusted to any
person (whether called a managing agent, managing
director, manager, superintendent, secretary or by any
other name), such other person;

(g) “employment injury” means a personal injury to an

insured person caused by an accident, or by such
occupational disease as may be specified in Schedule-III
of the Workmen Compensation Act, 1923, arising out of
and in the course of his employment;

 
 (h) “establishment” means -
(i) an establishment to which the West Pakistan Shops
and Establishment Ordinance 1969 (West Pakistan
Ordinance No. VIII of 1969), for the time being
applies, and, notwithstanding anything contained in
section 5 thereof, includes clubs, hostels,
organizations and messes, not maintained for profit or
gain of establishments, including hospitals, for the
treatment or care of sick, infirm, destitute or mentally
unfit persons;
(ii) a construction industry, as defined in the West
Pakistan Industrial and Commercial Employment
(Standing Orders) Ordinance, 1968 (West Pakistan
Ordinance No. VI of 1968);
(iii) a factory as defined in the Factories Act, 1934 (XXV
of 1934);
(iv) a mine as defined in the Mines Act, 1923 (IV of 1923);
(v) a road transport service as defined in the Road
Transport Workers Ordinance, 1961 (XXVIII of
1961); and includes any class of industries or
establishments which Government may, by
notification in the official Gazette, declare to be
establishments for the purpose of this Act;

(i) “Fund’ means the Employees Old-Age Benefits Fund set

up under section 17;
(j) “Government” means the Government of Sindh;

(k) “industry” means any business, trade, undertaking,

manufacturing or calling of employers, and includes any
calling service, employment, handicraft, industrial
occupation or avocation of workers;

(l) “Institution” means the Sindh Employees’ Old-Age

Benefits Institution established or nominated under
section 4 or section 5;

(m) “insured person” means an employee who is or was in

insurable employment;

(n) “insurable employment” means employment of a person

under a contract of service or apprenticeship, whether
written or oral, express or implied and in respect of which
contributions are payable under this Act or under the
Employees Old-age Benefit Act, 1976;

 
 (o) “invalidity” means a condition, other than that caused by
an employment injury, as a result of which an insured
person is permanently incapacitated to such an extent as
to be unable to earn from his usual or other occupation
more than one-third of the normal rates of earning in his
usual occupation;

(p) “member” means a member of the Board;

(q) “prescribed” means prescribed by rules;

(r) “regulations” means regulations made by the Board;

(s) “rules” means rules made under this Act;

(t) “Schedule” means Schedule to this Act;

(u) “wages” means the rates of wages as declared under the

Minimum Wages for Unskilled Worker Ordinance, 1969
(W.P. Ordinance XX of 1969);

(v) “year” with respect to insurable employment, means a

total of three hundred and sixty-five days for which
contributions are payable, or, in the case of insured
persons who are not paid for weekly holidays, a minimum
of three hundred and twelve days;

CHAPTER – II
INSURED PERSONS

3. All employees in an industry or establishment shall be insured Compulsory

in the manner prescribed by or under this Act. Insurance.

4. (1) As soon as may be, after the commencement of this Act, Administration.
Government shall establish or nominate by notification an Institution to
be called the Sindh Employees’ Old-Age Benefits Institution.
(2) The Institution shall be body corporate having perpetual
succession and a common seal, with powers subject to be provisions of
this Act, to acquire, hold and dispose of property, both movable and
immoveable, and shall by the aforesaid name sue or be sued.

5. (1) Notwithstanding anything contained in section 4, Government Nomination of a body

may, pending the establishment of an Institution, by notification in the corporate pending
official Gazette, nominate body corporate to exercise and perform all establishment of an
 

 
the powers and functions of the Institution under this Act and appoint Institution.
the head of such body corporate, by whatever name called, to be the
Chairperson.
(2) The nomination of a body corporate under sub-section (1) shall
be subject to such terms and conditions as Government may from time
to time, determine.

6. (1) The general direction and superintendence of the affairs of the Management.
institution shall vest in a Board, which may, with the assistance of the
Chairperson of the Institution, exercise all powers and do all acts and
things, which may be exercised or done by the Institution.
(2) In discharging its functions, the Institution shall be guided by
such instructions on questions of policy as may be given to it from time
to time by Government, which shall be the sole judge as to whether
any instructions are on a question of policy or not.

7. (1) The Board of Trustees shall consist of the following members Board of Trustees.
to be appointed by Government by notification in the official gazette,
namely:–
(a) the Secretary to Government of Sindh, Labour
Department, who shall also be the President of the Board
of Trustees;

(b) two persons to represent Government, one each from the

Departments of Finance and Industries;

(c) two persons to represent employers;

(d) two persons to represent insured persons; and

(e) Chairperson who shall also act as Secretary of the Board.

(2) Members to be appointed under clause (c) and (d) of sub section
(1) shall respectively be chosen from a list of names submitted in the
prescribed manner by the organizations of employers and employees
recognized by Government for that purpose:
Provided that, pending the making of rules in this behalf, the first
members to be so appointed shall be chosen from such persons as
Government may deem fit.

8. In addition to the powers conferred on, and the functions Power and functions
entrusted to it by the other provisions of this Act or by the rules, the of the Board of
Board shall have powers – Trustees.
(a) to approve the budget estimates, the audited accounts and
the annual report of the Institution for submission to
Government in accordance with the provision of this Act;
(b) to call for any information or direct any research to be
made for the furtherance of the objects of this Act; and
 

 
 (c) to co-opt any other technical person by name as member
on the Board for a specific purpose and for such limited
period as decided by the Board but such person shall not
have right of a vote.

9. (1) The Chairperson shall be appointed by Government for such Appointment, powers
term and on such terms and conditions as it may determine. and functions of
Chairperson.
(2) The Chairperson shall exercise such powers and perform such
functions as may be prescribed.
CHAPTER – III
CONTRIBUTIONS

10. (1) On and from the first day of July, 2014, the contribution shall Rates and assessment.
be payable every month by the employer to the Institution in respect of
every person in his insurable employment, at the rate of five percent of
his wages in the prescribed manner:

Provided that no contribution shall payable in respect of an

insured person who is in receipt of old-age pension under this Act or
has attained the age of sixty-years in the case of a woman.

(2) Where any insured person does not receive any wages from the
employer for any period, the Institution shall, subject to regulations,
determine the amount of wages with reference to which the
contributions shall be computed.

(3) Notwithstanding any agreement to the contrary, the employer

shall not deduct from the wages of an insured person or otherwise
recover from him any portion of employer’s share of contribution.

11. Government may make such contribution to the Institution as it Contribution by

may determine from time to time. Government.

12. The contribution shall be payable every month by an insured Contribution by

person at the rate of one percent of the wages in the prescribed manner. Insured person.

13. Every employer shall keep such records and shall submit to the Record and returns
Institution such returns, at such time, in such form and containing such by employers.
particulars relating to persons employed by him, as may be provided in
regulations.

14. (1) Every employer shall before the expiration of thirty days from Registration of
the day on which this Act becomes applicable to the industry or establishment, etc.
establishment in respect of which he is the employer, communicate to
the Institution the name and other prescribed particulars of the industry
or establishment and of every insured person employed in the industry
or establishment.
(2) Every insured person may also communicate his name and
other prescribed particulars to the Institution.

 
 (3) On receipt of communication under sub-section (1) or sub-
section (2), the Institution shall register the name of the Industry or
establishment or the insured person in such manner, and issue to the
insured person a registration card in such forms, as may be prescribed.

15. The Board may, on the basis of such evidence as it may find Cancellation of
satisfactory for the purpose, cancel the registration of any registration of
establishment or industry, which has ceased to exist: establishment, etc.

Provided that the cancellation of the registration of an

establishment or industry shall not affect its liabilities before the date
of such cancellation.

16. (1) Any official of the Institution duly authorized by a certificate in Official of Institution
a form specified in the regulations may, for the purpose of inquiring to check employer’s
into the correctness of any of the particulars stated in the records or book.
returns referred to in section 13 or for the purpose of ascertaining
weather any of the provision of this Act 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 into any establishment or

other premises occupied by such employer and require
any person found incharge thereof to produce and allow
him to examine such account books and other documents
relating to the employment of person 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 an insured person.

(2) The official referred to in sub-section (1) shall not demand

production of account books and other documents referred to in clause
(b) of sub-section (1) for a period of two years from the date of
registration of the establishment or the 1st day of July, 2014, whichever
is later, if the employer does not reduce the number of insured persons
in respect of whom contribution are paid under section 10:

Provided that on expiry of two years period, if the employer

enhance the number of insured persons by at least ten percent, it shall
be accepted without any question otherwise checking of record shall be
done as provided in sub-section (1), by an officer not below the rank of
Assistant Director of the Institution, duly authorized in this behalf and
no question shall be asked about the previous two years.

 
 (3) If an employer fails to maintain records or 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 insured 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
in the prescribed manners.

17. (1) If an employer fails to pay on the due date contribution payable
Increase of unpaid
by him under sub-section (1) of section 10, the amount so payable by
contribution and
him shall be increased by such percentage or amount as may be recovery of
prescribed. contribution etc., as
arrears of land
Provided that in no case such increase shall exceed fifty revenue.
percent of the amount due.

(2) Without prejudice to any other remedy, the amount of the

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

18. Notwithstanding anything contained in this Act, if an insured Safeguard of insured

person has communicated his name and other prescribed particulars to person’s right in
the Institution under sub-section (2) of section 14 has been issued by default of payment of
the Institution a registration card under sub-section (3) thereof and, in contributions by
case of changing employment from one industry of establishment to employers.
another industry or establishment, has also informed institution about
such change of employment, then in the event of default in payment of
contributions by the employers in respect of such insured person, such
insured person shall have and enjoy the same rights under this Act as if
no such default has occurred.

19. An employer shall be entitled to the refund of any contribution Refund of

paid to the Institution under erroneous belief that it was payable under contributions paid
the provision of this Act, and shall be entitled to the refund of excess erroneously.
amount of the contribution where such contribution had been paid at a
higher rate than the rate prescribed.

Provided 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.

20. Any claim of the Institution for unpaid contributions shall be Extinguishment of
extinguished in the manner provided in the regulations. claims to
contributions.

CHAPTER-IV
FINANCE AND AUDIT
21. (1) The Institution shall have its own fund, to be called the Employees’ Old-Age
Employees’ Old-Age Benefits Fund and may incur out of the Fund Benefits Fund.
such expenditure as may be necessary for the purposes of this Act.

 
 (2) All contributions paid under this Act and all other moneys
received by or on behalf of the Institution shall be paid into the fund.

(3) The institution shall drive its revenues from the following
sources:-
(a) contribution payable under this Act and the rules;
(b) all other payments made by the employers under this Act
and the regulations;
(c) income from investment of the moneys of the institution;
and
(d) donations and bequest for the purposes of this Act.

(4) The assets of the Institution shall be deposited in scheduled

banks as may be approved by the Board for the purpose.

22. (1) Subject to rules, the Institution may, from time to time, invest Investment and loans.
moneys, which are not immediately required for expenses under this
Act, and may reinvest or realize such investment in the Government
securities and in such other securities as may be approved by
Government.

(2) The Institution may, with the previous sanction of Government

and on such terms and conditions as it may specify, raise loans and
take measures for discharging such loans.

23. (1) The Institution shall draw up annually a budget showing the Budget, accounts and
anticipated receipts and expenditure during the following year and audit.
shall submit it to the Board for the approval of Government.

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

expenditure in such form and manner as may be prescribed.

(3) The books of account of the Institution shall be balanced on the

thirtieth of June each year and its accounts shall be audited by auditors
approved by Government at such time and in such manner as may be
prescribed.

(4) The auditors shall at all reasonable time have access to the books
of accounts and other documents of the Institution and may, for the
purposes of the audit, call for such explanation and information as they
may require and may examine any principle or other office of the
Institution.

(5) The auditors shall forward to the Government their report

together with an audited copy of the accounts of the Institution.

24. The Institution shall submit to Government an annual report of Annual Report.
its work and activities.

25. The Institution shall, at intervals of not more than three years, Valuation of assets
have an actuarial valuation made in the prescribed manner of its assets and liabilities.
and liabilities and no change in rate of contribution or benefit under
this Act shall be made without proper actuarial valuation.

 
 CHAPTER-V
BENEFITS

26. (1) An insured person shall be entitled to monthly old-age pension Old- Age pension.
at the rate specified in the Schedule:

Provided that -

(a) he is over sixty years of age, or fifty-five years in the case

of a woman, and

(b) contribution in respect of him were paid for not less than
fifteen years:

Provided further that the age specified in clause (a)

will be reduced by five years in the case of an insured
person employed in the occupation of mining for at least
ten years immediately preceding retirement.

Provided also that where the employee was insured

under the provisions of this Act or the Employees Old-age
Benefit Institution Act,1976 (Act No.XIV) of 1976) on or
before 30th June, 2014, and contributions payable under
this Act by the employers prior to 30th June, 2014, in
respect of said insured person had not been paid, the
insured person shall enjoy the rights under this Act as if for
the word “payable” the word “paid” were not substituted:

Provided further that where the contribution under

section 12 is paid regularly by the insured person himself
in accordance with prescribed procedure, his entitlement to
the benefit shall not be affected by default in payment of
employer’s share of contribution under section 10.

(2) If an insured person was on the 1st day of July, 1976, or is on

any day thereafter on which this Act becomes applicable to an industry
or establishment -

(i) over forty years of age, or thirty five years in the case of
a woman, clause (b) of sub-section (1) shall have effect
as if for the word “fifteen” therein the word “seven”
were substituted; or

(ii) over forty-five years of age, or forty years in the case of

a woman, clause (b) of sub-section (1) shall have effect
as if for the word “fifteen” therein the word “five” were
substituted.

27. If an insured person, not otherwise entitled to old age pension, Old age grant.
retires from insurable employment after attaining the age of sixty
years, or fifty-five years in the case of a women and a mine worker,
 

 
and contributions in respect of him were paid for less than fifteen
years, but not less than two years, he shall be entitled to an old-age
grant paid in a lump sum equal to his one month’s average monthly
wages for every completed year of insurable employment or part
thereof in excess of six months.

Provided that where the employee was insured under this Act
on or before 30th June, 2002, and contributions payable under the Act
by the employer prior to 30th June, 2002, in respect of said insured
person had not been paid, the insured person shall enjoy the rights
under this Act as if for the word “payable” the word “paid” were not
substituted.

Provided further that where the contribution under section 12

is paid regularly by the insured person himself in accordance with
prescribed procedure, his entitlement to the benefit shall not be
affected by default in payment of employers’ share of contribution
under section 10.

28. (1) In the case of death of an insured person while in insurable Survivors’ pension.
employment but after he had completed not less than thirty-six months,
insurable employment, the surviving spouse, if any, shall be entitled to
life pension at the rate specified in the Schedule.

(2) In case of the death of an insured person, while not in insurable

employment but after he had completed five years insurable
employment, the surviving spouse, if any shall be entitled to a life
pension at the rate specific in the Schedule.

(3) In the case of the death of an insured person who had become
entitled to old-age pension or invalidity pension before his death, the
surviving spouse shall, if the spouse had married the deceased person
before he had attained the minimum age prescribed for old-age
pension, receive a life pension equal to the pension of such person.

(4) In the case of the death of the surviving spouse in receipt of

survivor’s pension , the minor children of the deceased insured person,
if any, shall be entitled to the survivor’s pension in the following equal
shares, namely:-

(i) in case of a male child, until he attains eighteen years of

age; and

(ii) in case of female child, until she attains eighteen years of

age or until marriage, whichever is earlier;

(5) In case of cessation of survivor’s pension of any of the children

of the deceased person on his attaining the age of eighteen years or
marriage in case of a female, or death as the case may be the share of
survivor’s pension received by such child shall be distributed equally
among the rest of the minors children of the deceased insured person.

(6) In the case of death of surviving spouse in receipt of a survivor’s

pension within five years after the death of an insured person and not

 
survived by any minor child of the decease insured person, the
survivors’ pension shall be paid to the surviving parent of the deceased
insured person, if any, for a period of five years from the death of the
said spouse.

(7) In the case of death of an insured person who is not survived by a

spouse, the survivor’s pension shall be paid to the minor children of the
deceased insured person referred to in sub-section (4) and sub-section
(5), and in the case if the insured person not surviving any minor child,
the survivor’s pension shall be the surviving parents, if any, for a
period of five years from the death of the insured person.

29. (1) An insured person who sustains invalidity shall be entitled to Invalidity pension.
an invalidity pension at the rate to be calculated according to the
formula set out in the Schedule:

Provided that -

(a) contributions in respect of him were paid for not less

than five years; or

(b) contributions in respect of him were paid for not less

than five years since his entry into insurable
employment and for not less than three years during
the period of five years preceding the month in which
he sustains invalidity; and

(c) in either case, he is under sixty years of age or fifty-

five years in the case of a woman:

Provided further that where the employee was insured under the
provision of this Act on or before 30th June, 2002, and the contribution
payable under the Act by the employer prior to 30th June,2002, in
respect of said insured person had not been paid, the insured person
shall enjoy the rights under this Act as if for the word “payable” the
word “paid” were not substituted in clause (a) and (b):

Provided further that where the contribution under section 12 is

paid regularly by the insured person himself in accordance with
prescribed procedure, his entitlement to the benefit shall not be
affected by default in payment of employer’s share of contribution
under section 10.

(2) Subject to regulations, the invalidity pension shall be paid from

the month following that in which the insured person satisfies the
conditions for entitlement thereof:

Provided that the invalidity pension shall not be paid

retrospectively for more than six months preceding the month in which
an application for the invalidity pension is submitted.

(3) The invalidity pension shall be paid so long as invalidity

continues:

Provided that an insured person who has been in receipt of the

 

 
invalidity pension for not less than five continuous years or attains the
age specified in clause (a) of sub-section (1) of section 26 shall be
entitled to the invalidity pension for life.

CHAPTER- VI
PROVISION COMMON TO ALL BENEFITS

30. In calculating the contribution period for entitlement to a Calculation of

benefit under this Act, periods in respect of which invalidity pension qualifying
has been paid to an insured person prior to his attaining the age of sixty contribution periods.
years, or fifty five years in the case of a woman, or periods in respect
of which maternity benefit or sickness benefit or injury or total
disablement pension have been paid under the Provincial Employees’
Social Security Ordinance, 1965 (Ordinance No. X of 1965) to an
insured person, shall be deemed to be contribution periods to such
extent as may be provided by regulations.

31. (1) All claims for a benefit under this Act shall be made in writing Benefit claims and
and shall be accompanied by such documents, information and payments.
evidence as to entitlement as may be provided by regulations.

(2) The payment of benefit shall be made in such manner, and as

such time and place, as may be provided by regulations.

32. A right to any benefit shall stand extinguished where a claim Extinguishment of
thereof is not made within twelve months of the date on which the benefits.
benefit becomes payable:

Provided that the Institution may condone the delay and admit
the claim if it is satisfied that the delay was caused for reasons beyond
the control of the insured person or the survivor.

33. Subject to regulations, the payment of old-age pension and Suspension of old-age
survivor’s pension shall be suspended when and so long as the insured pension and
person or the survivor entitled to it is absent from Pakistan, except survivor’s pension.
where the regulations provide otherwise.

34. (1) An insured person shall not be paid for the same period more Non-duplication of
than one of the benefits provided for in this Act. benefit.

(2) Where an insured person is entitled to more than one benefit

under this Act, he shall be given the higher of such benefits.

(3) Where an insured person is entitled to a benefit under this Act

and to a disablement pension under the Provincial Employees’ Social
Security Ordinance, 1965 (Ordinance No. X of 1965), he shall be given
the higher of the two.

(4) The invalidity pension shall not be payable to an insured person

so long as he receives the sickness benefit under the Provincial
Employees’ Social Security Ordinance, 1965 (Ordinance No. X of
1965).

 
35. A benefit payable under the Act shall not be liable to Benefit not
attachment in the execution of a decree, nor shall it be rechargeable or attachable, chargeable
assignable and any agreement to charge or assign, a benefit shall be or assignable.
void and on the bankruptcy of an insured person, the benefit payable to
him shall not pass to any trustee or person acting on behalf of his
creditors.

36. (1) When a person has received any benefit under this Act to which Repayment of benefit
he is not lawfully entitled, he shall be liable to repay to the Institution improperly received.
the amount of the benefit in such manner as may be provided by
regulations:

Provided that the Institution may waive repayment of a benefit

where payment thereof was not due to misrepresentation on the part of
the insured person receiving it and the payment would cause undue
hardship to him.

(2) Sums due to the Institution by virtue of the foregoing sub-

section may be recovered by deduction from a benefit payable under
this Act.

37. Where the contingency for which a benefit is payable under Institution’s right to
this Act was caused under circumstances creating a legal liability in be indemnified in
some person, the Institution shall be entitled to substitute itself for the certain cases.
insured person in bringing a suit for damages against that person.

38. Any amount recoverable under this Chapter may be recovered Recovery of amounts
arrear of land revenue. due.

CHAPTER-VII
DETERMINATION OF QUESTION AND CLAIMS

39. If any complaint is received or any question or dispute arises Decision on

as to - complaints, questions
and disputes.
(a) whether a person is an insured person within the meaning
of this Act;

(b) the amount of wages of an insured person for the

purposes of this Act;

(c) the amount of contribution payable by an employer in

respect of an insured person;

(d) the person who is the employer in respect of an insured

person;

(e) entitlement to any benefit under this Act or as to the

amount and duration thereof; or

 
 (f) registration of industry or establishment; or

(g) any other matter in respect of any contributions or any

benefit to in clause (e) or dues payable or recoverable
under this Act relating to contribution or the aforesaid
benefits,

the matter shall be decided by the Institution, in such manner, and

within such time, as the regulations may provide and the Institution
shall notify its decision to the person concerned in writing, stating
therein the reason for its decision.

40. The institution may, subject to regulations, on new facts being Review of decisions.
brought to its notice, review a decision given by it under section 39:

Provided that no decision shall be reviewed without giving the

person concerned an opportunity of being heard and adducing evidence
in support of or against the decision, as the case may be.

41. Subject to rules, a person aggrieved by a decision of the Appeal to Board.

Institution under section 39 or on a review under section 40, may
appeal to the Board.

42. The Institution shall appoint Medical Boards which shall Assessment of
assess the degree of invalidity sustained by an insured person in such invalidity.
manner as may be provided by regulations.

CHAPTER-VIII
OFFENCES AND PENALTIES
43. If any person - Offences.

(a) for the purpose of obtaining a benefit or denial of any

payment or benefit under this Act, 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 Act –

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

or false representation; or

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

be produced or furnished, any documents or
information which he knows to be false in any material
particular; or

(b) fails to pay any contribution which under this Act he is

liable to pay; or

(c) recovers or attempts to recover from an insured person, or

deducts or attempts to deduct from his wages, the whole or
any part of the employer’s share of contribution, or

(d) fails to refuses to submit any return required by this Act or

 
 regulations or makes a false return; or

(e) obstruct any official of the Institution in the discharge of

his duties; or

(f) is guilty of any contravention of this Act or rules or non-

compliance with any of the provisions of this Act, rules or
the regulations,

he shall be punished with imprisonment for a term which may extend

to two years, or with fine which may extend to twenty five thousand
rupees or with both.

44. (1) No prosecution under this Act shall be instituted except with the Prosecution.
previous sanction of Government or any authority authorized in this
behalf by it.

(2) No court inferior to that of a Magistrate of the First Class shall

try any offence under this Act.

(3) No court shall take cognizance of any offence under this Act
except on a complaint made in writing within six months of the date on
which the offence comes to the knowledge of Government or an officer
or authority referred to in sub-section (1).

CHAPTER-IX
MISCELLANEOUS

45. In any proceedings of insolvency against a person or Contributions, etc.

proceedings for winding up of a company, any contribution or other
amount payable under this Act by such person or company shall be
deemed to be included among debts to be paid in priority to all other
debts.

46. The stamp duty shall not be chargeable upon any documents Exemption from
used in connection with allowances payable under this Act. stamp duty.

47. Notwithstanding anything contained in any other law, Exemption from

Government may, by order in writing exempt the Institution from any taxes.
tax duty, or rate leviable by Government or by a local authority under
the control of Government.

48. The member and employees of the Board and all officers and Members and
servants of the Institution shall be deemed to be public servants within servants of the
the meaning of section 21 of the Pakistan Penal Code (Act XLV of Institution to be
1860). public servants.

49. The Board may delegate all or any of its powers and functions, Delegation of power.
in relation to such matters and subject to such conditions, if any, as
may be specified by order, to any officer or authority subordinate to the
Institution.

50. (1) Government may, subject to the condition of previous Power to make rules.
publication, by notification in the official Gazette, make rules to carry
 

 
out the purpose of this Act.

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

foregoing power, such rules may provide for all or any of the following
matters, namely:-

(i) the tenure of office of members of the Board, other than

the President and other terms and conditions of
appointment of the members of Board and the manner in
which the Board shall conduct its business, including the
number of members required to form a quorum at the
meeting thereof;

(ii) the manner in which names of persons from whom

members of the Board may be appointed shall be
submitted by organizations of employers and employees
recognized by Government for that purpose;

(iii) powers and functions of the Board;

(iv) fees and benefits of the members of the Board;

(v) times and rates at which, and conditions subject to which

contributions shall be payable;

(vi) percentage or amount by which contributions in arrears

may be increased under section 13;

(vii) investment of surplus moneys, realization of investment

and reinvestment of proceeds;

(viii) times at which and the manner in which the budget of the
Institution shall be prepared and submitted to the
Government;

(ix) the form and manner in which the Institution shall keep
accounts of its income and expenditure and its assets and
liabilities;

(x) the times at which, and the manner in which, the accounts
of the Institution shall be audited;

(xi) the matters which the annual report of the Institution shall
cover;

(xii) the times in which claims for a benefit shall be made;

(xiii) the manner and procedure for disposal of appeals by the

Board; and

(xiv) any other matter which is required to be or may be

prescribed.

 
51. (1) The Board may subject to the condition of previous Power to make
publication, by notification in the official Gazette, make regulations regulations.
not inconsistent with the provisions of this Act 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 time and places at which the meetings of the Board
shall be held;

(ii) the manners in which daily wages shall be calculated for

the purpose of determining the contribution payable;

(iii) determination of wages for computation of contributions

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

(iv) records to be kept and returns to be submitted by

employers, time at which and the form in which such
returns are to be submitted, and particulars relating to the
insured persons to be stated in such returns and the
manners and form for registration of employers and
insured persons;

(v) the manner in which any claim of the Institution for

unpaid contributions may be extinguished;

(vi) powers and duties of internal auditors;

(vii) the form and manner in which claims for a benefit shall
be preferred, and the documents, information and
evidence which shall accompany such claims;

(viii) the manner in which and the time and places at which
payment in respect of a benefit shall be made;

(ix) the manner in which and the time within with complaints,
questions and disputes shall be decided;

(x) the circumstances and the manners in which, on new facts

coming to light, the Institution may review decisions;

(xi) the method of payment of contributions and liability

thereof;

(xii) the manner in which invalidity shall be assessed and the

procedure thereof;

(xiii) the manner in which proof of age shall be furnished for

the purposes of this Act;
 

 
 (xiv) the manner in which the services of the Institution shall
be organized; and

(xv) any other matter not provided for in this Act or the rules
and necessary to give effect to the provisions of this Act.

52. Government may, subject to such conditions as it thinks fit to Power to exempt.
impose, by notification in the official Gazette, exempt any
establishment or industry from all or any of the provisions of this Act.

53. Nothing in this Act shall apply to:- Act not to apply to
certain persons
(a) persons in the service of the State, including members of
the armed forces, police force and railway servants;

(b) persons in the service of a local council, a municipal

committee, a cantonment board or any other local
authority;

(c) persons who are employed in the services or installations

connected with or incidental to the Armed Forces of
Pakistan including an ordinance factory maintained by the
Federal Government and Railway Administration;

(d) persons in the service of Water and Power Development

Authority;

(e) persons in the service of statutory bodies other than those

employed or in connection with the affairs of factory as
defined in section 2(i) of the Factories Act, 1934, (XXV
of 1934), or a mine as defined in the Mines Act, 1923 (
IV of 1923):

Provided that workshops maintained

exclusively for the purpose of repair or maintenance of
equipment or vehicles used in such statutory bodies shall
not be treated as factories for the purpose of this clause;

(f) members of the employer’s family that is to say, the

husband or wife and dependent children of the employer,
living in his house, in respect of their work for him.

54. There shall no discrimination on the basis of sex, religion, Protection against
race, creed, color, caste, ethnic background or domicile in employment, discrimination.
professional development and the wages for work of equal value.

55. (1) The provisions of the Employees Old-age Benefit Act, 1976 (Act Repeal and savings.
No.XIV of 1976), to the extent of its application to the Province of Sindh,
hereinafter referred to as the repealed Act, are hereby repealed.

 
 (2) Notwithstanding the repeal of the provisions of the repealed Act -

(a) anything done, rules or regulations made, notification or

order issued, officer appointed, Court constituted, notice
given, proceedings commenced or other action taken
under the repealed Act or purportedly to have been taken
under the repealed Act till the coming into force of this
Act, shall be deemed to have been validly done, made,
issued, appointed, constituted, given, commenced or
taken, under this Act; and

(b) every reference to the repealed Act shall be construed as

reference to the Act.
____________

BY ORDER OF THE SPEAKER

PROVINCIAL ASSEMBLY OF SINDH

G.M.UMAR FAROOQ
SECRETARY
PROVINCIAL ASSEMBLY OF SINDH

 
 SCHEDULE
(See Section 2(t), 26, 28 and 29)
(1) The monthly rate of old-age pension or invalidity pension payable to an
insured person and survivors’ pension payable to surviving spouses shall be
calculated in accordance with the following formula namely:-
Monthly wages X Number of years of Insurable employment
50
A period of six months or more of insurable employment shall be treated as one
full year. No. account shall be taken any period of insurable employment
completed by the insured person after becoming entitled to old-age pension.

(2) The average monthly wages of an insured person, referred to in paragraph (1),
shall be calculated on the basis of wages on which contributions were paid in
respect of the twelve calendar months immediately preceding the date on
which the insured person fulfils the conditions for entitlement to any benefits
under this Act:

Provided that the old-age pension or invalidity pension payable to an insured

person and survivor’s pension payable to a survivor of the deceased insured
person shall not be less than four thousand rupees per month for pension
commencing on or after the first day of July, 2008.

(3) The monthly rate of old-age pension, invalidity pension and survivors pension
being paid on or before first day of July, 2008, under paragraph (1) above
shall be increased by fifteen per cent.