Employees' Old-Age Benefits Act, 1976
HISTORICAL BACK GROUND ALONG WITH BRIEF ON AMENDMENTS
Prior to this law, in Pakistan, there were so many labour laws like Work’s Compensation Act, 1923
Factories Act, 1934,
Payment of Wages Act,1936, West Pakistan Social Security Ordinance, 1965 (Ordinance No: X of 1965), West
Pakistan Industrial
and Commercial (Standing Orders) Ordinance, 1968, Companies Profit (workers’ Participation)Act,1968,
West Pakistan Shops
and Establishment Ordinance,1969, Industrial Relation Ordinance,1969, Workers Welfare Fund Ordinance,
1971, Workers Children
(Education) Ordinance, 1972, etc. In many labour laws remedial, beneficial and welfare clauses and
sections were provided
but none from these laws or others provide such coverage of the old-age risk thus it was necessary to
make a law that can
provide security in the eve of old age when a man becomes handicap to work hard, condition of invalidity
and in the case of
death of a worker / employee the pension to the widows and orphans. In the European countries such laws
were in operation.
In view of this need, first time in Pakistan , in 1972, an Ordinance with the title of the Employees'
Old‑Age Pension Ordinance
(Ordinance X of 1972) was promulgated. Under this legislation first time, in Pakistan , the Government
indicates its desire to introduce
such a social security scheme for the betterment of the employees of private sectors. This Ordinance was
issued on 23rd April, 1972 where
under Old Age Pension scheme was introduced and a pension @ Rs; 60/= was suggested on completion of 20
years of service. For this
purpose retirement age was fixed at 55 years (50 years for female). This was a provincial legislation
that was intended to apply only
to those establishments which employed 100 or more workers, and wages for coverage under this scheme
were proposed to be
fixed at Rs. 500/= per month, while the rate of the contribution was fixed 5%, to be paid by the
employer. Before the implementation
of the Employees' Old‑Age Pension Ordinance, 1972, it was realized that the provincial pension scheme
would not bear fruit thus
the scheme was reshaped and after much work thereon the government introduced a better scheme for the
betterment, welfare and benefits
of the people of Pakistan.
This better scheme was promulgated on 23rd December, 1975 , whereby the Federal Government in the place
of the Employees' Old‑Age
Pension Ordinance, 1972, notified the Employees Old‑Age Benefits Ordinance (Ordinance XXVI of 1975).
This law relates to Old‑Age Benefits
for persons employed in industrial, commercial and other organizations, employing at least ten persons
Later on the Employees' Old‑Age Benefits Ordinance, 1975, was substituted by the better enactment, the
Employees' Old‑Age Benefits Act,
1976, (Act No XIV of 1976) which was passed by the National Assembly on 5th April, 1976 . The President
of the Islamic Republic of Pakistan
gave his assent on 15th April, 1976 , and then the Act was published in the Official Gazette of Pakistan
on 19th April, 1976 .
Although it came into force at once, but as per section 9 thereof the contribution was payable from 1st
day of July, 1976.
This Act was implemented from 1st day of July, 1976.
After promulgation of this statute many amendments are made therein and the last amendment has been mad
in June 2005 through Finance Act,
2005. Since the process of amendment is a non-stop process hence this journey of amendment is in way of
further amendments in view of the
need of the nation and ILO conventions and recommendations on Social Security laws/ schemes. Till June
2005 this law has been amended
through amendments as below:-
- Employees’ Old-Age Benefits (Amendment) Ordinance, 1983.
(Ordinance No. XVII of 1983),
- Finance Act, 1986. (Act 1 of 1986),
- Labour Laws (Amendments) Ordinance, 1993 (Ordinance XXIII of
1993),
- Employees Old-Age Benefits (Amendment) Ordinance, 2000.
(Ordinance IX of 2000),
- Labour Laws (Amendment) Ordinance, 2001. (Ordinance LIII of
2001),
- Employees’ Old-Age Benefits (Amendment) Ordinance, 2002.
(Ordinance I of 2002),
- Employees' Old-age Benefits (Amendment) Ordinance, 2002.
(Ordinance XLVI of 2002), and
- Finance Act, 2005.
EMPLOYEES’ OLD-AGE BENEFITS ACT, 1976:
CONTENT:
CHAPTER - I
PRELIMINARY.
1. Short title, extent, commencement and
application.
2. Definition.
CHAPTER - II
INSURED PERSONS.
3. Compulsory Insurance.
4. Administration.
5. Nomination of a body corporate pending
establishment of an Institution.
6. Management.
7. Board of Trustees.
8. Powers and Functions of the Board of
Trustees.
8A. Appointment, Powers and Functions of
Chairman.
CHAPTER - III
CONTRIBUTION.
9. Rates and Assessment
9A. Contribution by Government.
9B. Contribution by the insured
person.
10. Records and Returns by Employers.
11. Registration of Establishment,
Etc.
11A. Cancellation of Registration of
Establishments etc.
12. Officials of Institution to Check
Employer's Books.
13. Increase of Unpaid Contribution and
Recovery of Contribution, etc., as arrears of land revenue.
14. Safeguard of Insured Person’s Right in
Default of Payment of Contributions by Employers.
15. Refund of Contributions Paid
Erroneously.
16. Extinguishment of Claims to
Contributions.
CHAPTER - IV
FINANCE AND AUDIT.
17. Employees' Old‑Age Benefits Fund
18. Investments and Loans.
19. Budget, Accounts and Audit.
20. Annual Reports.
21. Valuation of Assets and
Liabilities.
CHAPTER - V
BENEFITS.
22. Old-Age Pension
22A. Old-Age Grant.
22B. Survivor’s Pension Pension.
CHAPTER - VI
PROVISIONS COMMON TO ALL BENEFITS.
24. Calculation of Qualifying Contribution
Periods.
25. Benefit Claims and Payments.
26. Extinguishment of Benefits.
27. Suspension of Old‑Age Pension and
Survivor's Pension.
28. Non‑Duplication of Benefit.
29. Benefit nor Attachable, Chargeable Or
Assignable.
30. Repayment of benefit improperly
received.
31. Institution's Right to Be Indemnified in
Certain Cases.
32. Recovery of Amounts Due.
CHAPTER - VII
DETERMINATION OF QUESTIONS AND CLAIMS .
33. Decisions of Complaints, questions and
disputes.
34. Review of decision.
35. Appeal to Board.
36. Assessment of invalidity.
CHAPTER - VIII
OFFENCE AND PENALTIES.
37. Offences.
38. Prosecution.
CHAPTER - IX
OFFENCE AND PENALTIES.
39. Contributions etc.
40. Exemption From Stamp Duty.
41. Exemption From Taxes
42. Member and servants of the institution to
be public servants
43. Delegation of Powers
44. Power to make Rules
45. Power to make Regulations
46. Power to exempt.
47. Act not to apply to certain
persons.
48. Repealed
49. Schedule
EMPLOYEES' OLD‑AGE BENEFITS ACT, 1976
(ACT No. XIV OF 1976)
[ April 15,1976 ]
An Act
"to repeal and re‑enact the Law relating of Old‑Age benefits for the
persons employed in industrial, commercial and other organizations."
WHEREAS it is expedient to repeal and re‑enact the law relating to old‑age
benefits for the persons employed in industrial, commercial and other organizations and matters
connected therewith:
It is hereby enacted as follows: ‑
CHAPTER - I
PRELIMINARY.
1.
Short Title, Extent, Commencement and Application.
(1) This Act may be called the Employees' Old‑Age Benefits Act,
1976.
(2) It extends to the whole of Pakistan .
(3) It shall come into force at once.
1[(4) It applies to every industry or establishment.
(i) wherein ten or more persons are employed by the employer, directly or through
any other person,
whether on behalf of himself or any 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 ten; or
2[(i-a) wherein less than ten 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 for the date of
submission of an application by
such industry or establishment; or
(ii) which the Federal Government may, by notification in the official Gazette,
specify in this behalf.}
1.
Sub-sec.(4) by Ord. XVII of 1983.s.e enforced from July 1,1983=1983 PLS 81
2.
Inserted Cl.(i-a) in sub-sec(4) by Labour Laws (Amendment) Ordinance,2001(Ord.
LIII), s.7(1), effective from July 1,
2001 : Gaz.of Pak. Extr. Pt. I, Oct. 20,2001 .
2.
Definitions.‑ In this Act, unless the context otherwise
requires,‑
[(a) "benefits" mean old‑age pension, invalidity pension, [survivor’s] 2 pension,
old‑age grant and such other
payments as may be determined by the Federal Government from time to time;}
3[(aa) "Board” means the Board of Trustees constituted under section 7 ;}
(b) "Contribution" means the sum of money payable to the Institution by the
employer {or by the Federal Government}4
in respect of an insured person under the provisions of the Act.
5[(bb) "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 {:]]
Provided5[ * * ] 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 ;]
7[(c) "employer", in relation to an industry or establishment, mean 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 where the affairs of an
industry or establishment are entrusted to any other person (whether called a managing agent, managing
director, manager,
superintendent, secretary or by any other name), such other person ;and]
(d) "employment injury" means a personal injury to an insured 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:
1.
Cl..(a) added after re-numbering original cl.(a) as (aa) by Or. XVII of 1983, enforced
from 1st July 1983= 1983
PLS 81
2.
Subs. for word”widow’s”,by Employees’ Old Age Benefits (Amendment) Ord. 2002,s. 2(a)
3.
Original Cl. (a) re-numbered as (aa), ibid.
4.
Add. By Finance Act, 1986(Act I of 1986) s.11.1.(a)
5.
Cl. (bb) add by Ord. XVII of 1983.
6.
Omitted 1st proviso of cl.(bb) added by Act I of 1986, by Labour Laws(Amendment) Act,
1994.
7.
Cl. ( c ) subs. By Ord. XVII of 1983, s. 3
8.
Sub-Clause (iii) omitted by Act I of 1986
1[(e) "establishment" means‑
( i ) an establishment to which the West of Pakistan and Establishments Ordinance, l969
(West Pakistan Ordinance No. VIII of 1969)
for the time being applies, and not with standing anything contained in section 5 thereof, includes
clubs, hostels, organisations
and messes not maintained for profit or gain and establishment, 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 of1961) ; and includes
any class of industries or establishments which the Federal Government may, by notification in the
official Gazette, declare to be
establishments for the purposes of this Act.]
(f) "fund" means the Employees' Old‑Age Benefits Fund set up under section l7 ;
(g) "industry" means any business, trade, undertaking, manufacture or calling of
employers, and includes any calling,
service, employment, handicraft industrial occupation or avocation of workmen ;
(h) "institution" means the Employees' Old‑Age Benefits Institution established
or nominated under section 4
[or section 5;] 2
(i) "insured person" means [an employee] 3 who is or was in insurable
employment;
(j) "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;
- Cl. (a) subs. By Ord. XVII of 1983, s.4=1983 PLS 81.
- Words and figure added. ibid..
- Subs for “a person”, by Act I of 1986.
(k) "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 earn from his usual or other occupation more
than one third of the normal
rates of earning in his usual occupation ;
(l) "member" means a member of the Board ;
(m) "prescribed" means prescribed by rules ;
(n) "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 earn from his usual or other occupation more
than one third of the normal
rates of earning in his usual occupation ;
(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 earn from his usual or other occupation more
than one third of the normal
rates of earning in his usual occupation ;
(p) “wages” means the rates of wages as declared under the Minimum Wages for
Unskilled Worker Ordinance,
1969 (W.P.Ordinance XX of 1969)”
(q) “year” , with respect to insurable employment means, a total of three
hundred and sixty‑five days for which
contribution are payable, or, in the case of insured persons who are not paid for weekly holidays, a
minimum of three hundred
and twelve days.]
1 Self Assessment scheme omitted by Finance Act, 2005.
2 Clauses (p) subs. by Finance Act, 2005.
CHAPTER II
INSURED PERSONS
1[3. Compulsory Insurance. ‑ All employees in an industry or establishment shall
be insured
in the manner prescribed by or under this Act.]
4. Administration.
(1) As soon as may be, after the commencement of this Act, the Federal Government shall
establish or nominate by notification an Institution to be called the Employees' Old‑Age Benefits
Institution.
(2) The Institution shall be a body corporate having perpetual succession and a common seal, with
powers, subject to
the provisions of the Act, to acquire, hold and dispose of property, both movable and immovable, and
shall by the aforesaid
name sue or be sued.
5. Nomination of a Body Corporate Pending Establishment of An Institution.‑
(1) Notwithstanding anything contained in section 4, the Federal Government may, pending the
establishment of an Institution, by
notification in the official Gazette, nominate a body corporate to exercise and perform all the powers
and functions of the Institution
under this Act and appoint the head of such body corporate, by whatever name called, to be the
2[Chairman] of the Institution.
(2) The nomination of a body corporate under sub‑section (1) shall be subject to such terms and
conditions as the Federal Government ma,
from time to time, determine.
6. Management.
(1) The general direction and superintendence of the affairs of the Institution shall vest in Board
which may, with the assistance of the 2[Chairman] 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 the Federal Government, which shall be the sole judge as to whether any
instructions are on a question of policy
or not.
7. Board of Trustees.
(1) The Board of Trustees shall consist of the following members to be appointed by the Federal
Government,
by notification, namely:‑
1. Subs by Finance Act,(Act 1 of 1986)
2. Subs for word ”head” by Ord. XVII of 1983, s. 5=1983 PLS 81
3. Appointments of members notified under S.R.O.588 (1)/76, June, 14=Gaz. Of Pak.Extr.
Pt. II, 18 June 1976 .
(a) the Secretary of Additional Secretary in the Labour Division, who shall also be the 1[President]
of the Board of Trustees ;
2(b) four persons to represent the Federal Government, one each from the Ministries of Finance and
Labour;
(c) four persons to represent the Provincial Governments, one to be nominated by each of the
Provincial Government ;
(d) four persons to represent employers ;
(e) four persons to represent insured persons ; and
3(f) one persons to represent the Institution.
(2) Members to be appointed under clause (d) and (e) of sub‑section (1) shall respectively be chosen
from a list of names submitted
in the prescribed manner by the organisations to the employers and employees recognized by the Federal
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
the Federal Government may deem fit.
8. Powers and Functions of the Board of Trustees.
In addition to the powers conferred on, and the functions entrusted to it by the other provisions of
this Act or by the rules,
the Board shall have powers.
(a) to approve the budget estimates, the audited accounts and the annual report of the Institution for
submission to the
Federal Government in accordance with the provisions of this Act ;[ ]4
(b) to call for any information or direct any research to be made for the furtherance of the objects
of the
Act[, and]5
6(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.
7[8A. Appointment, Powers and Functions of Chairman.
(1) The Chairman of the Institution shall be appointed by the Federal Government for such term and on
such terms and conditions
as it may determine.
(2) The Chairman of the Institution shall exercise such powers and perform such functions as may be
prescribed.]
- Subs. For “Chairman”, by Finance Act, 1986 (Act I of 1986), s.11(3);
- Comas and words comers and Industries Omitted by Finance Act, 2005
- For word two the word one was subs. By Finance Act, 2005
- Word” and omitted by Employees’ Old Age Benefits (Amendment) Ord. 2002, s. 3
- Coma and word “ and” added by by Employees’ Old Age Benefits (Amendment)
Ord. 200, s.3.
- Cl.( c ) inserted by by Employees’ Old Age Benefits (Amendment) Ord. 2002.
s. 3 ©
- Sec 8-A added by Ord. XVII of 1983, S.7= 1983 PLS 81
CHAPTER III
CONTRIBUTIONS
9. Rates and Assessment.‑
(1) On and from the first day of July, 1976, contribution shall be payable every month by the employer
to the Institution in respect of
every person in his insurable employment, at the rate of [six]1 per cent of his wages in the
prescribed manner;
3 [Provided {omitted}4 that no contribution shall be payable in respect of an
insured person who is in receipt of
[Old-age pension]5 under this Act or has attained the age of sixty years, or fifty‑five years in the
case of a woman.
(2) Where an 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] 7
- 1 Word “six” subs for word “five” by Finance Act, 2005
- 2. Proviso omitted by Finance Act, 2005.
- 3. Subs. By Finance Act, 1986 (Act I of 1986)
- 4. Word “Further” omitted by Finance Act, 2005
- 5. Subs. word “old-age pension” for word” pension, by Employees’ Old Age
Benefits (Amendment) Ord. 2002, s. 4(a)(i).
- 6. Third proviso Omitted by Finance Act, 2005.
- 7. Subs word” Employer’s share of contribution” for words “contribution” by
Employees’Old Age Benefits (Amendment) Ord. 2002, s.4(b)
- 8. Sub-Section 4 of Section 9 omitted by Finance Act, 2005.
1 [9A. Contribution by Government
Federal Government may make such contribution to the Institution as it may determined from time to time.
2 [9B. Contribution by the insured person: -
On and from Ist day of July 2001, the contribution shall be payable by an insured person at the rate of
[one percent of the wages]3 in prescribed manners.
10. 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 particulars relating to persons employed by him, as may be provided in regulation
11. Registration of Establishment, Etc.‑
(1) Every employer shall, before the expiration of thirty days from the day on which this Act becomes
applicable to the industry
or establishment in respect of which he is the employer, communicate to the Institution the name and
other prescribed particulars
of the industry or establishment
(2) Every insured person may also communicate his name and other prescribed particulars to the
Institution.
(3) On receipt of a 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 from, as may be prescribed.
4
[11A. Cancellation of Registration of Establishments, Etc.‑
The Board may, on the basis of such evidence as the Board may find satisfactory for the purpose, cancel the registration
of any establishment or industry which has ceased to exist :
Provided that the cancellation of the registration of an establishment or industry shall not affect
its liabilities incurred before the date of such cancellation.]
- Subs. New s.9A by Finance Act, 1995 s.8. for old s. 9A inserted by Finance
Act, 1986( Act 1 of 1986) s. 11(5)
- New Sec. 9B inserted by the Labour Laws (Amendment) Ord.2001, (Ord. LIII of
2001), s. 7(4) effective retrospectively from July 1, 2001 )
- For the words “Twenty rupees” the words “one percent of the wages” are
subs. By the Finance Act, 2005.
- Sec. 11A added by Finance Act1986 (Act I of 1986, s. 11(6) Gaz. Of Pak.
Extr., Pt-I June 29,1986
12. Officials of Institution to Check Employer's Books.‑
(1) Any official of the Institution, duly authorised by a certificate in a form specified in the
regulations, may, for
the purpose of inquiring into the correctness of any of the particulars stated in the records or
returns referred to in
section 10 or the purpose of ascertaining whether any of the provisions 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 any establishment or other premises occupied by such
employer and require any
person found in‑charge thereof to produce and allow him to examine such accounts books and other
documents relating to the
employment of persons and payment of wages, or to furnish to him such information, as he may consider
necessary ; or
(c) examine, with respect to any matter relevant to the purposes aforesaid, the
employer, his agent or any other
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 persons.[ ]1
3 (2) The official referred to in sub-section (1) shall not demand production of
account book 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, 2005, whichever is later, if the employer does not reduce the number of insured
persons in respect of whom
contribution are paid under section 9:
Provided that on expiry of two years’ period, if the employer enhances 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, duly authorized in this behalf and no question
shall be asked about the
previous two years.; and
(3) If an employer fails to maintain records or to submit returns as required by the
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.
- Subs full stop for colon by Employees’ Old Age Benefits (Amendment) Ord.
2002
- Proviso after cl .( c ) of Sub-Sec.(1) of sec.12 Omitted by Employees’ Old
Age Benefits (Amendment) Ord. 2002
- For sub-section 2 new sub-section and its proviso inserted by Finance Act,
2005.
- Section 12A omitted by Finance Act, 2005.
13. Increase of Unpaid Contribution and Recovery of Contribution, Etc., as arrears of
land revenue:‑
(1) If any employer fails to pay, on the due date, the contribution payable by him under
sub‑section (1) of section 9,
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 cent of the amount due.
(2) Without prejudice to any other remedy, the amount of contribution due, together with
the increase provided
for under sub‑section (1), may be recovered as an arrears of land revenue.
1[14. Safeguard of Insured Person’s Right in Default of Payment of Contributions by
Employers:‑
Notwithstanding anything contained in this Act, if an insured person has communicated
his name and other prescribed
particulars to the Institution under sub‑section (2) of section 11 and has been issued by the
Institution a registration card
under sub‑section (3) thereof and, in case of changing employment from one industry or establishment to
another industry or
establishment, has also informed the Institution about such change of employment, then, in the event of
default in payment of
contributions by the employer in respect of such insured person, such insured person shall have and
enjoy the same rights under
this Act as if no such default had occurred.]
15. Refund of Contributions Paid Erroneously:‑
An employer shall be entitled to the refund of any contribution paid to the Institution
under erroneous belief
that it was payable under the provisions of the Act, and shall be entitled to the refund of excess
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 as application for
such refund is made within six months of the date on which the contribution was paid.
16. Extinguishment of Claims to Contributions:‑
Any claims of the Institution for unpaid contributions shall be extinguished in the
manner provided in the regulations.:‑
1. Sec. 14 subs. By Ord. XVII of 1983
s. 9 = 1983 PLS 81
CHAPTER IV
FINANCE AND AUDIT
17. Employees' Old‑Age Benefits Fund:‑
(1) The Institution shall have its own fund, to be called the Employees' Old‑Age
Benefits Fund and may incur out
of the 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 derive 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 bequests for the purposes of this Act.
(4) The assets of the Institution shall be utilized solely for the purposes of this
Act.
(5) The moneys of the Institution shall be deposited in such banks as may be approved
by the Board for the purpose.
18. Investments and Loans:‑
(1) Subject to rules, the Institution may, from time to time, invest any moneys
which are not immediately required
for expenses under this Act, and may re‑invest or realize such investment.
(2) The Institution may, with the previous sanction of the Federal Government and on
such terms as it may specify,
raise loans and take measures for discharging such loans.
19. Budget, Accounts and Audit:‑
(1) The Institution shall draw up annually a budget showing the anticipated receipts
and expenditure during the
following year and shall submit it to the Board for the approval of the Federal 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 the Federal Government at such time and in such manner as
may be prescribed.
(4) The auditors shall at all reasonable times 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 principal or other officer of the Institution.
(5) The auditors shall forward to the Federal Government an annual reportof it work
and activities.
20. Annual Report:‑
The Institution shall submit to the Federal Government an annual report of its work
and activities.
1[21. Valuation of Assets and Liabilities:‑
The Institution shall, at intervals of not more than three years, have an actuarial
valuation made in the
prescribed manner of its assets and liabilities and no change in rate of contribution or benefit
under this Act shall be
made without proper actuarial valuation:
Provided that the Federal Government may direct a valuation to be made at such other
times as it may consider necessary.
1. Subs. for section 21 by Employees’ Old
Age Benefits (Amendment) Ord. 2002. s. 7
CHAPTER V
BENEFITS
22. 1[Old‑Age Pension]:‑
2[(1) An insured person shall entitled to a monthly old‑age pension at the rate
specified in the schedule.
Provided that: ‑
(a) he is over [sixty]3 years of age, or [fifty‑five]4 years in the case of a
woman; and
(b) contributions in respect of him were [paid]5 for not less than fifteen
years[.]6
7[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 [:]8
9[Provided also that where the employee was insured under the provisions of 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 9B 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 9."; and
(2) If an insured person was on the first 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 "seven" were substituted : or
(ii) over forty‑five years of age or forty years in 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.
- Subs. For “Old-age Allowance” by Act XVII of 1983, s. 2 = 1983 PLS 18.
- Sub-sec(1) and (2) subs. ibid.
- Subs. For “fifty Five “, by Finance Act, 1986(Act I of 1986), s.
11(7)(A)(a)(i); Gaz. of Pak. Extr. Pt. I, June 29,1986 .
- Subs. For “fifty”,ibid.
- Subs. word ”paid” for ”payable” by Employees’ Old Age Benefits (Amendment)
Ord. 2002. s. 8(a)(i)
- Colon subs for fullstop, ibid s. 11(7)(A)(a)(i)
- second proviso added, ibid s. 11(7)(A)(a)(i)
- Subs. colon for semicolon at the end of IInd proviso by Employees’ Old Age
Benefits (Amendment) Ord. 2002. s. 8(a)(ii)
- Inserted IIrd and IVth proviso after second proviso by Employees’ Old Age
Benefits (Amendment) Ord. 2002. s. 8(a)(iii).
1[(2A) Notwithstanding anything contained in sub‑section (1), an insured person‑
(a) who was insured under the provisions of this Act on or before the 30th June, 1986,
and will
attain the age of (fifty‑five years in the case of woman) on or before the 30th June, 1991, and
(b) in respect of whom contributions were payable to the Institution for the period
required under
the provision of this Act, shall been entitled to old‑age pension at the age of fifty‑five years
(fifty years
in the case of woman).
1[(2B) An insured person already in receipt of an old‑age or invalidity pension, or
entitled to
an old‑age pension under the provisions of sub‑section (2A), shall be entitled to a minimum pension at
the rate
specified in the Schedule.
1[(2C) An insured person who retired from insurable employment before attaining the age
of sixty years
(fifty‑five years in the case of woman) but after attaining the age of fifty‑five years(fifty years in
the case of a woman)
shall be entitled to a reduced old‑age pension on fulfilling the following conditions, namely :‑
(a) the Institution is satisfied through documentary evidence that the employer has a
definite
established retirement age of less than sixty years (fifty‑five years in the case of woman) ;
(b) the employer certifies that the insured person has been retired by him on
attaining the age of superannuation ; and
(c) the contributions in respect of him were [paid]2 for the period required under the
provision of this Act.
1[(2D) The old‑age pension shall be reduced by one half per cent of the Old‑Age Pension
specified in the
Schedule for each completed month by which the age falls short of sixty years (fifty‑five years in the
case of woman) and
the minimum old‑age pension shall be reduced in the aforesaid manner in the case of retirement from
insurable employment
before attaining the age of sixty years (fifty‑five years in the case of woman.
1[(2E) The reduction in old‑age pension specified in sub‑section (2D) shall be for life
and shall not be
restored on the insured person's attaining the normal pension age.]
- Sub-section (2A), (2B),(2C)(, (2D) and (2E) added, ibid, s. 11(7)(B)
- subs. word “ paid” for word “ payable” by Employees’ Old Age Benefits
(Amendment) Ord. 2002. s. 8(b)
(3) Subject to regulations, the [old‑age pension]1 shall commence as from the month
following that in which
the insured person satisfies the condition for entitlement thereto, provided that no [Benefit] shall be
payable retro‑actively
for more than six months preceding the month in which an application for [old‑age pension]1 is
submitted.
(4) Insurable employment of a person for the purposes of this Act shall commence on the
date from which
the first contribution in respect of him becomes payable.
(5) The [old‑age pension]1 payable to an insured person shall be terminated at
the month in which the death of such persons occurs.
3. [22A. Old‑Age Grant:‑
If an insured person, not otherwise entitled to old‑age pension, retires from
insurable employment after
attaining the age of sixty years, or fifty‑five years in case of woman and a mine worker, and
contributions in respect of
him were payable for less than fifteen years, but not less 4[than two] years, he shall be entitled to
an old‑age grant
payable 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[:]5
"Provided that where the employee was insured under the provision of th 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 9B 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 9."
1. [22B. Survivors' Pension:‑
(1) In the case of the death of an insured person while in insurable employment but
after he had completed
not less than thirty six months insurable employment, the surviving spouse, if any, shall be entitled
to a life pension
equal 2[ ***] the minimum pension:
3[(1A) In case of death of an insured person, while not in insurable employment but
after h had
completed five years insurable employment, the surviving spouse, if any, shall be entitled to a life
pension equal
to the minimum pension.
(2) In the case of the death of an insured person who had become entitled to old-age
pension or
[ invalidity pension]5 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 life pension [ equal to
]6 the pension
of such person.
4[( 3 ) In case the deceased of the surviving spouse in receipt of a survivor’s
pension, the minor
children of the deceased insured person, if any, shall be entitle ed 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[(2A) In the case of cessation of survivor’s pension of any of the children of the
deceased insured
person on his attaining the age of eighteen years or marriage incase of a female, or death, as the
case may be,
the share of survivors pension received by such child shall be distributed equally among the rest of
the minor
children of the deceased insured person.
6[(3B) In case of death of the surviving spouse in receipt of a survivor’s pension
within five years
after the death of the insured person and not survived by any minor child of the deceased insured
person,
the survivor’s pension shall be paid to the surviving parents of the deceased insured person, if any,
for a period of five years from the death of said spouse.
- Sections 22A and 22B subs.for original, by Finance Act, 1986(Act I of
1986), s. 11(8), Gaz. of Pak. Extr. Pt. I, June 29,1986
- Omitted words” sixty percent of” ibid s. 8(5)(a)
- New Sub-sec.1A added, ibid s. 8(5)(b)
- Sub-Sec.3 subs. For the original , , ibid s. 8(5)(d)
- Sub-Sec.3A subs., ibid s. 8(5)(d)
- Sub-Sec.3B subs, ibid s. 8(5)(d)
1[(4) In case of the 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 sub-section (3) and
sub-section (3A), and
in the case of the insured person not surviving any minor child, the survivor’s pension shall be paid to
the
surviving person, if any, for a period of five years from the death of insured person.
23. 2[Invalidity Pension]:‑
(1) An insured person who sustains invalidity shall be entitled to an [invalidity
pension]2
at the rate [to be calculated according to the formula set out in the schedule] 3[:]4
5["Provided 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):
5[Provided further that where the contribution under section 9B 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 9."
Provided that‑
(a) contribution in respect of him were [paid]6 for not less than fifteen years
; or
(b) contributions in respect of him were [paid]6 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]7 years of age, or [fifty‑five]7 years in the
case of woman.
- Sec.4 subs. , ibid s. 8(5)(e)
- Subs for “invalidity Allowance” by Ord. XVII of 1983 s.2
- Subs. For words” of seventy five rupees per month”, ibid. s.12
- For full stop, at the end of sub-section(1) colon subs. by Employees’ Old
Age Benefits (Amendment) Ord. 2002. s. 10 (b).
- Provisos added by Employees’ Old Age Benefits (Amendment) Ord. 2002.s.10
(b).
- For word “payable” the word “paid” subs. ibid s. 10(a)
- Subs. for “fifty-five” and “fifty” by Finance Act, 1986
(2)
Subject to regulations, the [invalidity pension]1 shall be payable from the month
following that
in which the insured person satisfies the conditions for entitlement thereto :
Provided that the [invalidity pension]1 shall not be payable retro‑actively for
more than six months
preceding the month in which as application for the [invalidity pension]1 is submitted.
(3)
The [invalidity pension]1 shall be payable so long as invalidity continues :
Provided that an insured person who has been in receipt of the [invalidity pension]1 for not less
than five continuous
years or attains the age specified in clause (a) of sub‑section (1) of section 22 shall be
entitled to the
[invalidity pension]1 for life.
- Subs. for “invalidity allowance” by Ord. XVII of 1983. s.2
CHAPTER VI
PROVISIONS COMMON TO ALL BENEFITS
24. Calculation of Qualifying Contribution Periods:‑
In calculating the contribution periods for entitlement to a benefit under this Act, periods in
respect of which
[invalidity pension]1 has been paid to an insured person prior to his reaching the age of [sixty]2
years, or [fifty‑five]2
years in the case of woman, or periods in respect of which maternity benefit or sickness benefit or
injury benefit or
total disablement pension have been paid under the West Pakistan Employees' Social Security Ordinance,
1965 (West Pakistan
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.
25. Calculation of Qualifying Contribution Periods:‑
(1) All claims for [a benefit]3 under this Act shall be made in writing and shall be accompanied by
such documents,
information and evidence as to entitlement as may be provided by regulations.
(2) Payment of [a benefit]3 shall be made in such manner, and at such times and places, as may be
provided by regulations.
26. Extinguishment of Benefits:‑
A right to [any benefit]4 shall stand extinguished where a claim therefore is not made within twelve
months of
the date on the [benefit]4 becomes payable:
5[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]6.
7[27. Suspension of Old‑Age Pension and [Survivor's Pension]8:‑
Subject to regulations, payment of old‑age pension and [survivor's pension]9 shall be suspended when
and so long as the
insured person or the [survivor]10 entitled to it is absent from Pakistan , except where the
regulations
provide otherwise]..
- Subs. For “invalidity allowance” by Ord. XVII of 1983. s. 2
- Subs. For words “fifty five” and “fifty” respectively by Finance Act, 1986
(Act I of 1986)
- Subs. for “ an allowance”, by Ord XVII of 1983, S.2
- Subs for words” the invalidity allowance or old-age allowance”, S.13 ibid.
- Proviso added, ibid
- Subs. for “Surviving Widow”, by Act 1 of 1986 S. 11(11)
- Section 27 subs. by Ord. XVII of 1983, s. 14= 1983 PLS 81.
- Subs. for “widow’s pension”, by Act 1 of 1986
- Subs. for “widow’s pension”, by Act 1 of 1986
- subs. for” surviving widow” ibid.
28. Non‑Duplication of [Benefit].:‑
(1)
An insured person shall not be paid for the same period more than one of the [benefits]1 provided
for this Act.
(2)
Where an insured person is entitled to more than on [benefit]1 under this Act, he shall be given the
higher of such [benefits]1.
(3)
Where an insured person is entitled to [a benefit]2 under this Act and to a disablement pension
under the
West Pakistan Employees' Social Security Ordinance, 1965 (West Pakistan Ordinance No. X of 1965) he
shall be given
the higher of the two.
(4)
The [invalidity pension]3 shall not be payable to an insured person so long as he receives the
sickness benefit
under the West Pakistan Employees' Social Security Ordinance, 1965 (West Pakistan Ordinance No. X of
1965).
29. [Benefit] Nor Attachable, Chargeable Or Assignable:‑
[A benefit]3 payable under this Act shall not be liable to attachment in the execution of a decree,
nor shall it be chargeable or assignable ; and any agreement to charge or assign [a benefit]3 shall
be
void, and on the bankruptcy of an insured person, the [benefit]1 payable to him shall not pass to
any
trustee or person acting on behalf of his creditors.
30. Repayment of 5[benefit] Improperly Received:‑
(1)
When a person has received any [benefit]1 under this Act to which he is not lawfully entitled, he
shall be liable to repay to the Institution the amount of the [benefit]1 in such manner as may be
provided by regulations :
Provided that the Institution may waive repayment of [a benefit]2 where payment thereof was not
due to misrepresentation on the part
of the insured person receiving it and the repayment 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]3 payable under this Act.
31. Institution's Right to Be Indemnified in Certain Cases:‑
Where the contingency for which [a benefit]3 is payable under this Act was caused under
circumstances creating a legal
liability in some person, the Institution shall be entitled to substitute itself for the insured
person in bringing a
suit for damages against that person.
32. Recovery of Amounts Due:‑
Any amount recoverable under this chapter may be recovered as an arrear of land revenue..
- Subs for “ allowance” by Ord. XVII of 1983
- Subs for “ an allowance”
- Subs for “ invalidity allowance”, ibid.
CHAPTER VII
DETERMINATION OF QUESTIONS AND CLAIMS
33. Decision on Complaints, Questions and Disputes:‑
If any complaint is received or any question or dispute arises as to‑
(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 ;
1[(e)
entitlement to any benefit under this Act or as to the amount and duration
thereof ; and ]
2[(ee)
registration of industry or establishment ; or]
(f)
any other matter in respect of any contribution or any [benefit]3 referred to
in clause (e), or dues payable or recoverable under this Act relating to contributions or the
aforesaid [benefits]4
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.
34. Review of Decisions:‑
The Institution may, subject to regulations, on new facts being brought to its
notice, review a decision
given by it under section 33.
Provided that no decision shall be so 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.
35. Appeal to Board:‑
Subject to rules, a person aggrieved by a decision of the Institution under section
33 or on a
review under section 34, may appeal to the Board.
36. Assessment of Invalidity:‑
The Institution shall appoint medical boards which shall, in such manner as may be
provided by
regulations, assess the degree of invalidity sustained by an insured person..
- Cl. (e) subs. by Ord. XVII of 1983, s. 15
- Cl. (ee) added, ibid
- Subs. for “allowance”, ibid s.2
- Subs. for “ allowances”, ibid s.2
CHAPTER VII
OFFENCES AND PENALTIES
37. Offences:‑
If any person‑For the purpose of obtaining [a benefit]1 or denial of any payment or [benefit]2,
under this Act, whether for himself or some other person, or for the ;purpose of avoiding any
payment to be made by him 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 cause, or knowingly allows to be produced or furnished, any document or
information which he
knows to be false in any material particular ; or
(b)
fails to pay any contribution which under the 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 3[ employer’s share of contribution] ; or
(d)
fails or refuses to submit any return required by this Act, or regulations or makes a false return
; or
(e)
obstructs any official of the Institution in the discharge of his duties ; or
(f)
is guilty of any contravention of, or non‑compliance with, any of the provisions of this Act or
the rules or the
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 ten thousand rupees, or with both.
38. Prosecution:‑
(1)
No prosecution under this Act shall be instituted except with the previous sanction of the Federal
Government
or any office or authority [authorized]4 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 the Federal Government or any officer or
authority referred to
in sub‑section(1).
- Subs, for” an allowance: by Ord.XVII of 1983 s.2
- Subs, for” allowance: by Ord.XVII of 1983 s. 2
- Subs. words “employer’s share of contribution” by Employees’ Old Age
Benefits (Amendment) Ord.
2002.s.11.
- Chairman, EOBI authorized to sanction the Institution of prosecution for
offences committed
under Act. No. SRO 398(1)/86 dated. 6/4/86 amended by notification dated 6/7/86 .
CHAPTER IX
MISCELLANEOUS
39. Contributions Etc:‑
In any proceedings of insolvency against a person or 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.
40. Exemption From Stamp Duty:‑
Stamp duty shall not be chargeable upon any documents used in connection with [benefits]1 payable
under this Act.
41. Exemption From Taxes:‑
Notwithstanding anything contained in any other law, the Federal Government may, by order in writing,
exempt the Institution
from any tax, duty, or rate leviable by the Federal Government or by a local authority under the
control of the
Federal Government.
42. Member and Servants of the Institution to Be Public Servants:‑
The members and employees of the Board and all officers and servants of the Institution shall be
deemed to be public
servants within the meaning of section 21 of the Pakistan Penal Code (Act XLV of 1860).
43. Delegation of Powers:‑
The Board 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 any officer or authority subordinate
to the institution.
44. Power to Make Rules:‑
(1)
The Federal Government may, subject to the condition of previous
publication in the official Gazette, make rules to carry out the purposes 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]2, and other terms and
conditions of appointment of
the members of the Board and the manner in which the Board shall conduct its business, including the
number of members
required to form a quorum at the meetings thereof
- Subs, for “allowance”: by Ord.XVII of 1983 s. 2
- Subs. word ‘President for words “Chairman” by Employees’ Old Age Benefits
(Amendment) Ord. 2002.s.12.
(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 the Federal Government for the purpose ;
(iii)
powers and functions of the Board.
(iv)
fees and [benefits]1 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, realisation of investments and reinvestment of proceeds;
(viii)
terms at which and the manner in which the budget of the Institution shall be prepared and submitted
to the Federal Government.
(ix)
the form and manner in which the Institution shall keep accounts of its income and expenditure and of
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 Institution shall cover ;
(xii)
the times in which claims for [a benefit]2 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.
- Subs, for “allowance”: by Ord.XVII of 1983 s. 2
- Subs, for “an allowance”: by Ord.XVII of 1983 s.2
45. Power to Make Regulations:‑
(1)
The Board may, subject to condition of previous publication, by notification in the official Gazette,
make 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 meetings of the Board shall held ;
(ii)
the manner 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 manner
and from 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.
(viii)
the form and manner in which claims for [a benefit]2 shall be preferred, and the documents,
information and evidence
which shall accompany such claims ;
(ix)
the manner in which and the time and places at which payment in respect of [a benefit] shall be made ;
(x)
the manner in which and the time within which complaints, questions and disputes shall be decided ;
(xi)
the circumstances and the manner in which, on new facts coming to light, the Institution may review
decisions ;
- Cl.(vii) omitted by Act I of 1986 s. 11(13)
- Subs, for “an allowance”: by Ord.XVII of 1983 s.2
(xii)
the method of payment of contributions and liability thereof ;
(xiii)
the manner in which invalidity shall be assessed and the procedure thereof ;
(xiv)
the manner in which proof of age shall be furnished for the purposes of this Act ;
(xv)
the manner in which the services of the Institution shall be organised ; and
(xvi)
any other matter not provided for in this Act or the rules and necessary to give effect to the
provisions of this Act.
46. Power of Exempt:‑
The Federal Government may, subject to such conditions as it thinks fit to impose, by notification in the official Gazette,
exempt any establishment or industry from all or any of the provisions of this Act.
47. Act Not to Apply to Certain Persons:‑
Nothing in this Act shall apply to-
(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 the local council, a municipal committee, a cantonment board or any other local authority ;
(c)
persons who are employed in services or installations connected with or incidental to the Armed Forces of Pakistan
including an ordinance factory maintained by the Federal Government or Railway Administration ;
(d)
persons in service of Water & Power Development Authority ;
(e)
persons in the service of a bank or a banking company ;
(f)
person in the service of statutory bodies other than those employed in or in connection with the affairs of a factory
[as defined in]1 section 2 (j) of the Factories Act, 1934 (XXV of 1934), [or a mine as defined in the]2 Mines Act, 1923
(IV of 1923) :
Provided that workshop maintained exclusively for the purposes of repair or maintenance of equipment or vehicles used in
such statutory bodies shall not be treated as factories for the purposes of this clause ;
- Subs. for” registered under” , by Ord. XVII of 1983 s. 16= 1983 PLS 81.
- Sub. For “or the” ibid.
(g)
members of the employer's family, [that is to say, the husband or wife and the dependent children of the employer]1
living in his house, in respect of their work for him ; and
48. Repealed by Ord. XXVII of1981,s.3 & 2nd Schedule.:‑
- Words inserted, ibid.
- Cl. (h) omitted by Act I of 1986, s. 11(14).
1[SCHEDULE]:‑
(See sections 22 & 23)
(1)
The monthly rate of old‑age pension or invalidity pension payable to an insured person shall be calculated in
accordance with the following formula, namely :‑
( Average monthly wages x Number of years of insurable employment )/50
A period of six months of more on insurable employment shall be treated as one full year. No account shall be taken of
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 twelve calendar
months immediately preceding the date on which the insured person fulfills the conditions specified in section 23 as the
case may be:
Provided that the old‑age pension or invalidity pension payable to an insured person shall not be less than [one thousand]2
rupees per month for pension commencing on or after the first day of [January,2005]3.
- Schedule subs for original schedule ibid, s. 11(15)
- Substituted for words “seven hundreds “by Finance Act, 2005.
- Substituted for words “November 2001“by Ord. No 1 of 2002, s.2(b)
- Paragraph 3 and table omitted, ibid.
Contributions under Employees' Old-Age Benefits Rules 1976
S.R.O. 759(1)/80, dated 19th July 1980: In exercise of the powers conferred
by
Section 45 of the Employees’ Old-Age Benefits Act, 1976 (XIV of 1976) the Federal Government is
pleased
to make the following rules:-
1. Short title and commencement:
(1) These regulations may be called the
Employees’ Old-Age Benefits (General) Regulations, 1980.
(2) They shall come into force at once.
2. Definitions:
(1) In these regulations unless there is
anything repugnant in the subject or context,-
(a) “Act” means the Employees’ Old-Age
Benefits Act, 1976 (XIV of 1976);
(b) “Form” means a form annexed to these
regulations;
(c) “Institution” means the Employees’
Old-Age Benefits Institution exercising and performing the powers and functions of the Institution
under
the Act.
(2) Words and expressions used in these
regulations but not herein defined shall have the same meaning as are assigned to them in the Act.
3. Meetings of the Board
(1) Frequency of Board Meetings:
The Board shall meet as frequently as is necessary for the purpose of
transacting its business: Provided that not more than six months shall intervene between any two
meetings of the Board.
(2) Place of meetings:
The meetings of the Board will normally be held at the Head Office of the
Institution or at such other places as the President may, from time to time, decide.
4. Calculation of daily wages for determining Contributions:
Daily wages, for the purpose of contributions, shall be calculated on the
following basis:-
(1) If the wages is paid on the monthly
basis the daily wages shall be the monthly wages divided by 26;
(2) If the wages is paid on fortnightly
basis the daily wages shall be the fortnightly wages divided by 13;
(3) If the wages is paid on a weekly basis
the daily wages shall be the weekly wages divided by six;
(4) If the wages is paid for part of the
month or the week the daily wages shall be the wages paid divided by the actual number of days worked.
5. Maintenance of records and submission of returns by employers:
(1) Every employer shall maintain and keep
the records hereinafter mentioned for inspection and verification by the Institution or its officials
authorized for the purpose:
(i) Full particulars of all persons
employed
by him including the persons in his insurable employment, their occupations, wages, attendance, dates
of
entry and exit, insured person’s registration numbers and such other particulars as may be necessary
for
the purpose of the proper identification of all persons in his insurable employment;
(ii) Pay roll of all persons employed
showing therein full details of the disbursement of wages to them;
(iii) Duplicate copies of the returns
submitted to the Institution.
(iv) Such other records which the employer
is or may be required to maintain under the Act or the rules or the regulations or which the
Institution
may require the employer to maintain from time to time.
(2) Every employer shall preserve the
records required to be maintained by him under this regulation of all persons in his insurable
employment pertaining to the period for which contributions are payable and have been paid, for a
period
of two years or until such time as all persons in his insurable employment have been duly issued PI-03
cards, whichever is the later:
" Provided that the Institution may direct
an employer to preserve such record for a longer period, if so required."
(3) Every employer shall submit to the
Institution a quarterly return in Form PR-02 containing full particulars of every person in his
insurable employment accompanied by receipted copies of the Contribution Payment Slips in Form PR-03,
prescribed under sub-rule (4) of rule 3 of the Employees’ Old-Age Benefits (Contributions) Rules,
1976,
in respect of each month of the relevant quarter, within fifteen days of the end of the quarter to
which
it relates.
Explanation:-
Quarter means a period of 3 calendar months commencing from Ist January, Ist
April, Ist July and Ist October, each year.
(4) Notwithstanding anything contained in
sub-regulation (2) of this regulation, the Institution shall have powers to condone delay in
submission
of returns and extend time for this purpose to the employer showing a reasonable cause for
non-submission of the return within the due date.
6. Certificate of Authority:
(1) The certificate by which an official
of
the Institution may be authorized to perform the duties specified in Section 12 of the Act shall be in
Form PI-01.
(2) Any certificate issued in such form
shall bear a photograph of the authorized official along with his specimen signature and the official
rubber stamp, common seal of the Institution.
7. Proof Of Age:
An insured person shall submit documentary evidence in proof of his/her
declared age in the insured person’s registration form. Following documents, in order of preference,
will be acceptable to the Institution as proof of age:-
(i) Certified extract from Municipal
Birth
Register or other public register, signed and stamped by a duly authorized officer.
(ii) Matriculation or equivalent
certificate or a certificate from the Head of a recognized educational/Institution
School/College/University based on the records of that educational institution provided that the date
of
birth is mentioned therein.
(iii) Certified extract from Government
records such as Service Book, Civil List, etc., or from the Service records of joint stock companies,
autonomous bodies, Semi-Government Institution, etc., signed and attested by a duly authorized
officer.
(iv) Baptismal Certificate.
(v) Original horoscope prepared at the
time
of birth of the insured person (in case of Hindus only).
(vi) National Identity Card issued under
the National Registration Act, 1973.
(vii) An affidavit preferably of the
parents of the insured person, otherwise of any elder relative of the insured person having personal
knowledge of the date of birth duly sworn in on a non-judicial stamp paper of prescribed value.
Affidavit will be accepted if it is established to the satisfaction of the Institution that
documentary
proof is not available. Notwithstanding proof of age filed by the insured person, the Institution
reserves the right to call for such other proof of age as it may deem fit.
8. Payment of contributions and liability of Employer:
(1) Every employer is liable and shall so
remain liable to pay the contribution in the manner prescribed in the Rules and Regulations.
(2) The liability of the employer to pay
contributions in such manner shall not be extinguished by or depend upon any demand, written or oral
being made by the institution in that behalf.
9. Offices of the Institution:
The Institution shall have its Head Office at Karachi or at such other
place
as the Federal Government may decide and other offices at such places and in such numbers as the
Institution may from time to time decide.
Employees’ Old-Age Benefits Institution
line is
transparent (Form PR-02)
| Employer’s Registration Number |
Brach/Sub-Office Code |
| Quarter Code |
Year Code |
| Sr. No |
Insured Person's Registration No. |
Name of Inured Person |
Change in Occupational Status |
Amount of wages/Salary Paid |
No of days for which Salary is paid
|
No of days Allow/Benefits |
Allow/Benefit Code |
| 2 |
20-30 |
|
3 |
32-35 |
36-37 |
38-39 |
40 |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |