SHAMS TEXTILE MILLS LTD. And Others vs PROVINCE OF PUNJAB And Other
This matter concerns a petition for leave to appeal before the Supreme Court of Pakistan regarding the interpretation of the Punjab Employees Special Allowance Payment Act, 1988, in relation to the Social Security Ordinance, 1965. The core legal question presented is whether the special allowance paid to a worker under the provisions of the Punjab Employees Special Allowance Payment Act, 1988, constitutes part of the employee's 'wage' for the purpose of calculating the employer's contribution liability under the Social Security Ordinance, 1965. This issue is particularly significant given the specific exemption granted by Section 8 of the Punjab Employees Special Allowance Payment Act, 1988. The Court granted leave to appeal to determine if this statutory exemption precludes the inclusion of such allowances in the wage base for social security contributions. The Court further ordered that the interim order previously issued on 17-1-1996 shall remain in force during the pendency of the appeals on the same terms, thereby maintaining the status quo regarding the disputed contributions while the legal question is adjudicated.
- Is the special allowance paid under the Punjab Employees Special Allowance Payment Act, 1988, considered part of a worker's wage for calculating employer contributions under the Social Security Ordinance, 1965?
- Does the exemption provided in Section 8 of the Punjab Employees Special Allowance Payment Act, 1988, exclude special allowances from the definition of wages for social security contribution purposes?
- Section 8, Punjab Employees Special Allowance Payment Act, 1988
- Social Security Ordinance, 1965
ORDER
1. SAAD SAOOD JAN, J.---Leave to appeal is granted to whether the appeal allowance being paid to a worker in pursuance of the provisions of the Punjab Employees Special Allowance Payment Act, 1988, is to be treated as part of his wage for the purpose of computing the contribution which his employer is liable to make under the Social Security Ordinance, 1965, despite the specific exemption granted by section 8 of the aforementioned Act. The interim order already made on 17- 1-1996 to continue during the pendency of the appeals on the same terms.