PACKAGES LIMITED, KOT LAKHPAT, LAHORE Versus , DIRECTOR, PUNJAB EMPLOYEES' SOCIAL S,SURITY INSTITUTION, LAHORE

MUNIR A. SHAIKH, J.‑‑‑ In this appeal the question which requires consideration is as to whether House Rent was part of wages for the purposes of raising demand for Social Security Contribution and the demand could be raised for any amount in excess of Rs.20 per day, as envisaged under section 20(4) of the Social Security Ordinance.

2. As regards House Rent it has been held by the Supreme Court of Pakistan in a case reported as National Embroidery Mills Ltd. and others v. Punjab Employees' Social Security institution (1993 SCMR 1201) that it was a part of wages. The appeal to the extent of house rent has no merits, which is accordingly dismissed.

3. Section 20(4) of the Social Security Ordinance which provides that no demand could be raised of wages in excess of Rs.20 per day, requires further inquiry because this section is controlled by section 71 and in case the requirement of section 71 had been fulfilled the demand could be raised in excess of wages of Rs.20 per day which aspect of the case has not been determined by both the Courts below. The appeal is accepted to this extent and case remanded to the Director to determine this point in the light of the law applicable after holding inquiry and recording evidence if necessary.

4. The appeal qua imposition of penalty is‑ also accepted because the non‑payment of the contribution was not due to any mala fide intention. The parties are left to bear their own costs.

H.B.T./P‑73/L

Order accordingly.