PUNJAB EMPLOYEES' SOCIAL SECURITY INSTITUTION LAHORE Versus PAKISTAN INDUSTRIAL GASES LIMITED, LAHORE

MUNIR A. SHAIKH, J. ‑‑‑ Nobody has appeared on behalf of the respondent in spite of service. The respondent is hereby proceeded against ex parte.

2. The only law point which arises for determination in this appeal under section 64 of the Provincial Employees' Social Security Ordinance, 1965 is as to whether House Rent Allowance and Cost of Living Allowance payable to the workers fall within the ambit of the terms wages/remunerations. As regards House Rent Allowance it has been decided by the Supreme Court in the recent judgment reported as National Embroidery Mills Ltd. and others v. Punjab Employees' Social Security Institution (1993 SCMR 1201) that the same was part of wages, therefore, the decisions of both the Courts below on this point are not sustainable.

3. As regards Cost of Living Allowance both the Courts below have held that the same was exempted from payment of social security contribution as section 3 of the Employees' Cost of Living (Relief) Ordinance, 1973 provided that the same would not form part of wages. It has been pointed out by the learned counsel for the appellant that the two Courts below have not taken note of the fact that according to the said provisions of law Cost of Living Allowance up to Rs.35 per month was held to be not the part of wages and any amount paid in excess thereof per mensem could not be excluded from consideration being part of the wages. This point has not been dealt with by the two Courts below and we cannot give any decision because it requires factual inquiry and it has to be established as to what was the exact amount which was being paid to the workers on account of Cost of Living Allowance.

4. This appeal is partly accepted. The orders of both the Courts below regarding House Rent Allowance are set aside and the respondent is hereby held to be liable to pay social security contribution qua the same.

5. As regards the determination of liability on account of Cost of Living Allowance the case is remanded to the Director who shall decide the casein accordance with law in the light of the observations made above. There will be no order as to costs.

H.B.T./P‑72/L

Order accordingly.