PUNJAB EMPLOYEES' SOCIAL SECURITY INSTITUTION, LAHORE. Versus KOHINOORTEXTILE MILLS LIMITED, RAWALPINDI

MUNIR A. SHAIKH, J. ‑‑‑ This appeal under section 64 of the West Pakistan Employees' Social Security Ordinance, 1965, calls in question the legality of order dated 14‑11‑1975 passed by the Punjab Labour Court No. 1, Lahore through which Attendance Allowance at the rate of Rs.10 per cent paid to the workers by the employer was held to be not part of their wages for raising demand for social security contribution 4th the decision of the Institution passed in the complaint filed by the employer against the said demand by which the complaint was rejected has been set aside.

2. It was an admitted position that the allowance at the rate of Rs.10 per ‑cent. was allowed to those workers/employees who were to give better attendance i.e. 26 days in a month, therefore, .it was certainly a payment which was to be earned by the worker in relation to the work and not as a reward ex gratia. The payment might have been made with the intention to give incentive to the workers for hard work or for working maximum days in the month but the fact remains that it was paid to them in lieu of the work. It has been held in judgment reported as National Embroidery Mills Ltd. and others v. Punjab Employees' Social Security Institution (193 SCMR 1201) that such an amount if paid would fall within the ambit of definition of wages though any other name might have been given to it, as such, the finding of the Labour Court in the impugned order dated 14‑11‑1975 that the same was not part of wages cannot be sustained.

3. This appeal is accepted, order dated 3‑6‑1975 passed by the Commissioner, Punjab Employees' Social Security, Lahore is set aside and that of the Director restored. There will be no order as to costs.

H.B.T./P‑71/L

Appeal accepted.