An establishment, as defined under section 2(12) of the Sindh Employees’ Social Security Act 2016 (Amendment Act 2018) is initially notified by the Government as provided under section 1(3). The establishment stands covered under the Social Security Scheme from the date of notification and also liable to pay social security contribution as per Section-20 of the SESS Act 2016 (Amendment Act 2018) at the rate prescribed by the Government. Currently the rate of social security contribution is  6% of the salary/wages drawn by the secured worker, coverable up to the maximum limit of Rs.37,000/- per month or Rs.1,423/- per day (the rate and maximum limit is subject to enhancement through notification issued by the Sindh Minimum Wages Board). The rate of contribution is of minimum wages rates prevailing at the time of paying the contribution under Sindh Minimum Wages Act 2015 i.e. Rs.32,000/- per month or Rs.1,230.77 per day for unskilled, adult, juvenile and adolescent worker effective from 1^st July 2023. The minimum limit for payment of social security contribution is however, the minimum wage (Rs. 6,000/-)  for unskilled worker under Minimum Wages Ordinance, 1961, as provided under section 2(30) of the Ordinance.

Under Section-22 of the SESS Act 2016 (Amendment Act 2018) and Rule 4(1)(ii) of Social Security (Contribution) Rules 2019, the employer has to submit complete information regarding secured workers employed by him on the prescribed form C-1.

Through EODB Reforms, online Social Security contribution have been started from 25^th January 2020 in the Institution. E-payment through 1-Link and Alternative Delivery Channel (ADC) established with joint efforts between SESSI, 1-Link, PITB and employer and started payment through 1-Link (1-bill).

Social security contribution is payable on monthly basis. Contribution of current month is payable by the end of the preceding month. In case of failure to make contribution as stated above, increase under Section-24(1) of the SESS Act 2016 (Amendment Act 2018) @ ½% per day subject to maximum of 50% of the principle amount of contribution, is payable by the employer.

Under Section-23 of the SESS Act 2016 (Amendment Act 2018), the Officers of the Institution are authorized to check the books of accounts including other related records of the establishment as well as its contractors in order to authenticate the correctness of paid / payable Social Security contribution. On failure to produce the records for authentication of payment of Social Security contribution, the Institution under Section-23(3) of the SESS Act 2016 (Amendment Act 2018) has been authorized to assess the payable arrears of Social Security contribution on the basis of such evidence as the Institution may find satisfactory for the purpose.

The Government, in the Labour Laws (Amendment) Ordinance 2001, inserted a new Section-21 wherein  the employers have been facilitated to opt for Self-assessment scheme and pay social security contribution at the rate of 6% of the minimum wage limit per month per secured employee plus Rs.40/- being worker’s share per month. Such employers have been exempted from annual verification of records by the Officers of the Institution for a period of 2 years as per Section-23(4) of the SESS Act 2016 (Amendment Act 2018).

Under Section-24(2) of the SESS Act 2016 (Amendment Act 2018), the amount of contribution due along with increase levied thereon, may be recovered as arrears of land revenue.