Jinnah’s citizens
January 21, 2023
Superintelligence
January 21, 2023

In Pakistan, a social security scheme was introduced in the 1960s to provide benefits to certain employees of industries or establishments or their dependents in the event of sickness, maternity, employment injury or death. It was followed by the Companies Profits (Workers’ Participation) Act, 1968 and three more welfare laws for workers. However, after the devolution of these laws to the provinces through the 18th Amendment in 2010, government institutions and the revenue board responsible for managing welfare schemes under these laws have been involved in intense litigation with the employers. The Employees’ Old-age Benefits Act, 1976 (EOBI) in particular continues to face enormous challenges. The federal government has retained the management of the pension scheme but is not empowered to make any amendments in the EOB Act, and so doesn’t have the legal authority to either raise the amount of monthly pension or the contribution payable by employers. This has led to controversy and employers have been paying contributions according to their own will. The solution to these issues would be for the federal government to retain the management of the scheme through a simple majority vote in the National Assembly.

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