Daily Times

KARACHI: The Sindh government has authorised Sindh Revenue Board to collect Workers Welfare Fund.

In this regard, the government has issued instruction to all trade bodies operating in the province not to pay the Workers Welfare Fund contribution to the Federal Board of Revenue (FBR).

The EOBI Act, 1976 was enforced with effect from April, 1976, with an aim to achieve the objective of Article 38 (c) of the Constitution, by providing for compulsory social insurances. It extends old-age benefits to insured persons of their survivors.

Prior to the devolution, the Federal Board of Revenue was collecting six percent of the salary out of which five percent from the employers and the one percent from the employees, sources said.

The FBR collects the amount and forward it to the Ministry of Finance and the provinces are supposed to furnish schemes aimed at welfare of the labourers and the amount used to be transferred to provincial governments. But, now the Sindh government has authorised the Revenue Board to collect the funds from the employers/employee and maintain data of the workers and the funds, sources added.

Sindh used to get Rs 1.5 billion, Punjab Rs 3 billion, Rs 3 billion to Balochistan and Khyber Pakhtunkhawa on yearly basis as EOBI share from the federal government. Interestingly, sources lamented that the FBR never shared the collection details with any province.

The sources said that the funds to be collected by Sindh’s authorities would be larger in share and they would be utilised to establishing labour colonies, register maximum number of workers to enhance existing facilities for the labourers.

“The arrangements have been finalised to takeover the EOBI. We are just waiting for a notification mentioning the names of Board of Trustees for the EOBI in Sindh.”

Moreover, Labour and Human Resources Secretary Abdul Rasheed Solangi has forwarded letters to the trade bodies including Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), Korangi Association of Trade and Industry (KATI) and Site
association.

“By virtue of 18th amendment in the constitution, the concurrent list has been abolished and all the subjects enumerated in the said list have been devolved to provinces. The Sindh Assembly has passed the bill namely “The Sindh Workers Welfare Fund Act, 2014 and this act has repealed Workers Welfare Fund Ordinance, 1971 to the extent of province of Sindh,” according to a letter available with Daily Times.

“In this regard, Workers Welfare Board has been notified on October 28, 2015, and its first meeting was held on December 10, 2015 under the chairmanship of Adviser to Chief Minister for Labour and Human Resources.

It is necessary to mention that in accordance with the provision of Section-5 (1&2) of the SWWF Act, 2014, “collection of contribution has been entrusted to Sindh Revenue Board, and the Sindh Revenue Board has started collection through its own mechanism,” the letter added.

“You are, therefore, requested to please circulate all the members to pay contribution of Workers Welfare Fund to Sindh Revenue Board instead of FBR in accordance with the provision of SWWF Act, 2014, and also extend full cooperation in this regard”, it added.