The Education Cess was levied in the province of Sindh in the year 1972 and initially the collection of Education Cess was being made by the Excise & Taxation Department, Government of Sindh under the Workers’ Children (Education) Ordinance, 1972.

The Sindh Employees’ Social Security Institution was entrusted with the collection of Education Cess in 1994 by Sindh Government under Labour  Department notification number L-II-2-7-89 dated 07-08-1994: SESSI, to act as collecting agency and the collection of Education Cess is made from the employers of industrial / commercial units where 10 or more workers are employed, on the basis of highest number of workers engaged on any day during   the  year  @  Rs. 100/- per worker per annum provided that a worker shall not cease to be a worker  for the reason that his monthly wages exceed  three thousand rupees or the number of person employed in the establishment, at any time, is reduced  to less than ten.

The Cess for a year is collected by the field directorate either by lump-sum or half yearly / quarterly basis as per provision of sub-rule (1) of rule (5) of Sindh Workers’ Education Cess (Collection) rules, 1994. In case the employer fails to pay the Cess in accordance with the schedule provided by local directorate, the Director is authorized to recover the same as arrears of land revenue under the provision of Land Revenue Act and Rules framed there-under.

The local Director collects the Cess from the establishments. The Cess being collected by SESSI is transferred to Sindh Workers Welfare Board (Education Section) after deduction of 2% being collection charges as per Rule-8(7) of the Sindh Workers’ Children Education Cess (Utilization) Rules, 1994.