The Industrial Relations Advisers,
Management & Labour Laws Consultants
Room 3, 1st floor, Falaknuma Building, Near The Laboratory & Haroon Radio, Abdullah Haroon Road, Karachi
Phone: 32727266 & 32729770 Fax: 32729770 (S M Iqbal) Email: email@example.com
†††††††††††††† Circular No. C Ė 135††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† †††††††††††††† Date: - 10-10-2012
The Minimum Wages declared by the Provincial Governments
under the Minimum Wages Ordinance, 1961
1- The then Prime Minister announced the minimum wage of workers at rate Rs. 8000/= p.m. though he had no jurisdiction to do so after the 18th amendment of the Constitution.
2- The Punjab Govt. took the lead and issued notification dated 14-06-2012 under the Minimum Wage Ordinance, 1961 allowing minimum wage of Rs. 9000/= p.m. w.e.f. 01-07-2012 in all industries of the province.
3- The Sindh issued the notification under the Minimum Wages Ordinance, 1961 seeking public opinion within 30 days on the proposed minimum wage at the rate of Rs. 8000/= p.m. w.e.f. 01-07-2012 but thereafter it has kept quiet. The Labour Dept., SESSI and EOBI have presumed the minimum wage of Rs. 8000/= p.m. in the Sindh w.e.f. 01-07-2012 and are writing letters without any legal basis in this connection.
4- The Balochistan Govt. has issued itís final notification dated 02-10-2012 (having typographical errors) declaring the minimum wage of Rs. 9000/= p.m. w.e.f. 01-07-2012 in the specified 30 types of industries in the province under the Minimum Wages Ordinance, 1961. It is not yet known as to what is being done by the Govt. of Khyber P.K. in this respect.
5- The minimum wage declared should cover all industries in the province and limiting it to the specified industries would create problems as in the same area specified industries may allow the minimum wage and if the non-specified industries of the same area do not allow the minimum wage, it would create labour unrest/problems.
6- The new minimum wages declared by the provinces are under the Minimum Wages Ordinance, 1961 not confined to any one category of employees which would have effect on the contribution under the Provincial Employees Social Security Ordinance, 1965 but it will have no effect whatsoever on Contribution under the Employees Old-Age Benefits Act, 1976 in view of the provision of Section 2(p) of the Act providing to presume wage of all employees being at the rate of the minimum wage declared under the Minimum Wages for Unskilled Workers Ordinance, 1969 which is Rs. 6000/= p.m. till now but the EOBI is illegally demanding contribution on the new minimum wage declared under a different law i.e. the Minimum Wages Ordinance, 1961 and is trapping the employers illegally under itís Web Facilitation which works out contribution not on Rs. 6000/= p.m. but on different minimum wage declared under the Minimum Wages Ordinance, 1961 inspite of the fact the Sindh Govt. even otherwise has not yet finally declared the minimum wage of Rs. 8000/= p.m. under the Minimum Wages Ordinance, 1961.
7- Other aspects and details in respect of these minimum wages declared by the provinces our earlier Circulars on the minimum wages of Rs. 7000/= p.m. declared by the provinces may please be perused which are not repeated herein.
8- For any further clarification you may consult your labour laws consultant.