News FlashesDecember 12, 2023

CRS News Flash 11 December 2023 – PAKISTAN (Sindh) – Minimum Wages and EOBI Contributions

DECEMBER 2023 – PAKISTAN (SINDH)

MINIMUM WAGES AND EOBI CONTRIBUTIONS
It is important that employers note the following:

Employees Old Age Benefits Institution (EOBI) contributions

The minimum wage for monthly earnings in Sindh has been set at Rs 32,000 by the government. The minimum wage is applicable to unskilled adult juvenile workers employed in all industrial and commercial establishments in Sindh.

On 2 October 2023, CRS circulated a news flash with the minimum wages for the other provinces in Pakistan, namely Balochistan, Islamabad Capital Territory, Khyber Pakhtunkhwa and Punjab. At the time, no official notification regarding the increase in the minimum wage had been issued/released by the Sindh Minimum wage Board.

With this news flash, Sindh’s minimum wage is now equal to that of the other Pakistani regions.

The minimum wages affect the contributions to the EOBI. The Employees Old Age Benefits Act, 1976 is applicable to all companies with five or more workers, whether contractual or regular, who are employed or were employed during the past 12 months.

Employers pay a contribution equal to 5% of the minimum wage, while employees pay 1% of the minimum wage.

The Sindh minimum wage notification can be found by following this link.

 

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