SHAMS TEXTILE MILLS LTD. and others vs PROVINCE OF PUNJAB and others
This matter arises from a petition for leave to appeal before the Supreme Court of Pakistan, concerning the computation of employer contributions under the Social Security Ordinance, 1965. The core legal question is whether the special allowance paid to a worker under the Punjab Employees Special Allowance (Payment) Act, 1985, forms part of wages for calculating social security contributions, notwithstanding the specific exemption provided under section 8 of the said Act. The Court granted leave to appeal to examine this statutory interaction and ordered that the interim relief granted earlier on 17-1-1996 shall continue during the pendency of the appeals on identical terms. The key principle established relates to the interpretation of statutory exemptions regarding special allowances vis-a-vis social security contribution liabilities.
- Whether the special allowance paid under the Punjab Employees Special Allowance (Payment) Act, 1985 is to be treated as part of a worker's wage for computing social security contributions?
- Does section 8 of the Punjab Employees Special Allowance (Payment) Act, 1985 exempt the special allowance from being included in wage calculations under the Social Security Ordinance, 1965?
- Section 8, Punjab Employees Special Allowance (Payment) Act, 1985
- Social Security Ordinance, 1965
ORDER
1. SAAD SAOOD JAN, J.---Leave to appeal is granted to consider whether the special allowance being paid to a worker in pursuance of the provisions of the Punjab Employees Special Allowance (Payment) Act, 1985, 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.