Law:

Section:

(a) West Pakistan Employees' Social Security Ordinance (X of 1965)-------Ss. 2(30) & 20---Washing allowance---Liability of employer to pay contribution thereon---Washing allowance paid to employees did not form part of wages of employees and employer could not be obliged to pay contribution for washing allowance. Shahbazud Din Ch. and 27 others v. M/s. Services Industries and 4 others PLD 1988 SC 1; M/s. Dawood Cotton Mills Ltd., Karachi v. Social Security Institution, Karachi PLD 1978 Kar. 744; M/s. Bawani Violin Textile Mills Ltd. v. The Employees' Social Security Institution PLD 1978 Kar. 890 and 1988 PLC 540 ref. (b) West Pakistan Employees' Social Security Ordinance (X of 1965)--- ----Ss. 2(30) & 20---Industrial Relations Ordinance (XXIII of 1969), S.25-A---Special compensatory allowance---Liability of employer to pay contribution---Special compensatory allowance, was not an "ex gratia" payment, but was granted to employees on basis of settlement---Payment of special compensatory allowance being a right secured to employees, same could be enforced under S.25-A of Industrial Relations Ordinance, 1969--­Said allowance having been granted under settlement, employer was obliged to pay contribution thereon. National Embroidery Mills Ltd. and others v. Punjab Employees' Social Security Institution 1993 SCMR 1201; 1991 SCMR 862 and M/s. Consolidated Sugar Mills Ltd. v. Employees' Social Security Institution and another PLD 1991 SC 862 ref. Sahibzada Anwar Hameed for Appellant. Ch. Bashir Ahmed for Respondent. Date of hearing: 1st July, 1997. JUDGMENT The brief facts giving rise to this appeal are as follows: The appellant on checking the record of the respondent issued demand notice on account of less paid social security contribution for the period from January, 1981 to December, 1982 amounting to Rs.1,60,545 on the ground that respondent paid the following allowances to their employees: (i) Privilege leave encashment. (ii) Cycle allowance. (iii) Washing allowance. (iv) Special compensatory allowance. 2. The respondent aggrieved by the abovementioned demand notice filed a complaint under section 57 of the Provincial Employees' Social Security Ordinance,…

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