The Employees Old-Age Benefits Act, 1976

Sections	Contents
	Preamble
	CHAPTER 1 PRELIMINARY
1	Short title, extent, commencement and application.
2	Definitions
	CHAPTER II INSURED PERSONS
3	Compulsory Insurance.
4	Administration.
5	Nomination of body corporate pending establishment of institution.
6	Management.
7	Board of Trustees.
8	Power and functions of the Board of Trustees.
8-A	Appointment, Powers and functions of Chairman.
	CHAPTER III CONTRIBUTIONS
9	Rate and assessment.
10	Record and returns by employers.
11	Registration of establishments, etc.
12	Officials of Institution to check employer’s books.
13	Increase of unpaid contribution and recovery of contribution, etc. as arrears of land revenue.
14	Safeguard of Insured person’s right in default of payment of contribution by employer.
15	Refund of contributions paid erroneously.
16	Extinguishment of claims to contributions.
	CHAPTER IV FINANCE AND AUDIT
17	Employees Old-Age Benefit fund.
18	Investments and loans.
19	Budget, accounts and audit.
20	Annual Report.
21	Valuation of assets and liabilities.
	CHAPTER V BENEFITS
22	Old-Age [Pension ].
22-A	Old-Age grant.
22-B	Widows pension.
23	Invalidity allowance
	CHAPTER VI PROVISIONS COMMON TO ALL BENEFITS
24	Calculation of qualifying contribution periods.
25	Benefit claims and payment.
26	Extinguishment of benefits.
27	Suspension of old-age pension and widow’s pension.
28	Non-duplication of benefit.
29	Benefit not attachable, chargeable or assignable.
30	Repayment of benefit improperly received.
31	Institutions right to be indemnified in certain cases.
32	Recovery of amount due.
	CHAPTER VII DETERMINATION OF QUESTIONS AND CLAIMS
33	Decision of complaints, questions and disputes.
34	Review of decisions.
35	Appeal to Board.
36	Assessment of invalidity.
37	Offences.
38	Prosecutions.
	CHAPTER IX MISCELLANEOUS
39	Contributions, etc.
40	Exemption from stamp duty.
41	Exemption from taxes.
42	Member and servants of the institution to be public servants.
43	Delegation of Powers.
44	Powers to make rules.
45	Power to make regulations.
46	Power to exempt.
47	Act not to apply certain persons.
	Schedule.
48	Repeal.

EMPLOYEES OLD-AGE BENEFITS

ACT,1976

(XIV OF 1976)

15th April, 1976

An Act to repeal and re-enact the

law relating to old age benefits for the persons employed in industrial, commercial and other organizations

Preamble: Whereas it is expedient to repeal and re-enact the law relating to old-age benefits for the person employed in industrial, commercial and other organizations and matters connected herewith;

It is hereby enacted as follows: –

CHAPTER 1

PRELIMINARY

1. Short title, extent, commencement and application: (1) This Act may be called the Employees’ Old-Age Benefits Act, 1976.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(4) it applies to every industry or establishment-

(i) wherein ten or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months, and shall continue to apply to every such industry or establishment even if the number of persons employed therein is. at any time after this Act becomes applicable to it, reduced to less than ten ; or

(ii) which the Federal Government may, by notification in the official Gazette, specify in this behalf.

2. Definitions : In this Act, unless the context otherwise requires,-

(a) ‘benefits’ means old-age pension, invalidity pension, widow’s pension, ‘old-age grant and such other payments as may be determined by the Federal Government from time to time ;

(aa) ‘Board’ means the Board of Trustees constituted under Section 7 ;

(b) ‘contribution’ means the sum of money payable to the institution by the employer in respect of an insured person under the provisions of the Act ;

[bb) ’employee’ means any person employed, whether directly or through any other person, for wages or otherwise, to do any skilled or unskilled, supervisory, clerical, manual or other work in, or in connection with the affairs of, an industry or establishment, under a contract of service or apprenticeship, whether written or oral, express or implied, and includes such person when laid off ;

(c) ’employer’ in relation to an industry or establishment, means any person who employs, either directly or through any other person, any employee, and includes-

(i) in the case of an individual, an heir, successor, administrator or assign ;

(ii) a person who has ultimate control over the affairs of an industry or establishment, or where the affairs of an industry or establishment are entrusted to any other person (whether called a managing agent, managing Director, Manager, Superintendent, Secretary or by any other name), such other person ; and

(iii) a person responsible to the owner for supervision and control of an employee or for payment of his wages ;

(d) ’employment injury’ means a personal injury to an insured person caused by an accident, or by such occupational disease as may be specified in the regulations, arising out of and in the course of his employment;

[(e) ‘establishment’ means-

(i) an establishment to which the West Pakistan Shops and Establishments Ordinance, 1969 (West Pakistan Ordinance No. VIII of 1969), for the time being applies, and, notwithstanding anything contained in Section 5 thereof, includes clubs, hostel, organizations and messes not maintained for profit or gain and establishments, including hospitals, for the treatment or care of sick, infirm, destitute or mentally unfit persons ;

(ii) a construction industry as defined in the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (West Pakistan Ordinance No. VI of 1968):

(iii) a factory as defined in the Factories Act, 1934 (XXV of 1934);

(iv) a mine as defined in the Mines Act, 1923 (IV of 1923) ;

(v) a road transport service as defined in the Road Transport Workers Ordinance, 1961 (XXVIII of 1961) ; and includes any class of industries or establishments which the Federal Government may, by notification in the official Gazette, declare to be establishments for the purposes of this Act ;]

(f) ‘fund’ means the Employees’ Old-Age Benefits Fund set up under Section 17 ;

(g) ‘industry’ means any business, trades, undertaking, manufacture or calling of employees and includes any calling, service, employment. handicraft, industrial occupation or avocation of workmen ;

(h) ‘institution’ meant the Employees’ Old-Age Benefit institution established or nominated under Section 4 [or Section 5] ;

(i) ‘insured person’ means a person who is or was in insurable employment ;

(j) ‘insurable employment’ means employment of a person under a contract of service or apprenticeship, whether written or oral, express or implied and in respect of which contribution are payable under this Act ;

(k) ‘invalidity’ means a condition, other than that caused by an employment injury, as a result of which an insured person is permanently incapacitated to such an extent as to be unable to earn from his usual or other occupation more than one-third of the normal rates of earning in his usual occupation ;

(l) ‘member’ means a member of the Board ;

(m) ‘prescribed’ means prescribed by rules ;

(n) ‘regulations’ means regulations made by the Board ;

(o) ‘rules’ means rules made under this Act;

[(p) ‘wages’ means remuneration for services paid or payable in cash or in kind to an insured person, not being less than the remuneration based on the minimum rates of wages declared under the minimum Wages Ordinance, 1961 (XXXIX of 1961), without taking account of deductions for any purpose, under a contract of service or apprenticeship, express or implied, and shall be deemed to include any dearness allowance or other addition in respect of the cost of living, and any payment by the employer to an insured person in respect of any period of authorised leave, illegal lock-out or legal strike ; but does not include-

(i) any payment for overtime ; or

(ii) any sum paid to the employee to defray special expenses entailed by the nature of his employment ; or

(iii) any gratuity payable on discharge ; or

(iv) any sum paid a’ bonus ;

(q) ‘year’, with respect to insurable employment means a total of three hundred and sixty-five days for which contributions are payable, or, in the case of insured persons who are not paid for weekly holidays, a minimum of three hundred and twelve days.

CHAPTER II
INSURED PERSONS

3. Compulsory Insurance: All persons employed in an industry or establishment under a contract of service or apprenticeship, whether written or oral, express or implied, shall be insured in the manner provided by or under this Act,

4. Administration: (1) As soon as may be, after the commencement of this Act, the Federal Government shall establish or nominate by notification as institution to be called the Employees’ Old-Age Benefits Institution.

(2) The institution shall be a body corporate having perpetual succession and a common seal with powers subject to the provisions of this Act, to acquire, hold and dispute of property, both moveable and immovable, and shall by the aforesaid name sue or be sued.

5. Nomination of a body corporate pending establishment of an Institution: (1) Notwithstanding anything contained in Section 4, the Federal Government may, pending the establishment of an Institution, by notification in the official Gazette, nominate a body corporate to exercise and perform all the powers and functions of the Institution under this Act and appoint the head of such body corporate, by whatever name called, to be the [Chairman] of the Institution.

(2) The nomination of a body corporate under sub-section (1) shall be subject to such terms and conditions as the Federal Government may, from time to time, determine.

6. Management: (1) The general direction and superintendence of the affairs of the Institutions shall vest in Board, which may, with the assistance of the [Chairman] of the institution, exercise all powers and do all acts and things which may be exercised or done by the institution.

(2) In discharging its functions, the institutions shall be guided by such instructions on questions of policy as may be given to it from time to time, by the Federal Government, which shall be the sole judge as to whether any instructions are on a question of policy or not.

7. Board of Trustees: (1) The Board of Trustees shall consist of the following members to be appointed by the Federal Government, by notification, namely-

(a) the Secretary or Additional Secretary in the Labour Division, who shall also be the Chairman of the Board of Trustees ;

{b) four persons to represent the Federal Government, one each from the Ministries of Finance, Commerce, Industries and Labour ;

(d) four persons to represent employers ;

(e) four persons to represent insured persons ; and

(f) two persons to represent the Institution.

(2) Members to be appointed under clauses (d) and (e) of sub-section (1) shall respectively be chosen from a list of names submitted in the prescribed manner by the organizations of employers and employees recognized by the Federal Government for that purpose;
Provided that, pending the making of rules in this behalf, the first members to be so appointed shall be chosen from such persons as the Federal Government may deem fit.

8. Powers and functions of the Board of Trustees: In addition to the powers conferred on, and the functions entrusted to it by the other provisions of this Act or by the rules, the board shall have powers-

(a) to approve the budget estimates, the audited accounts and the annual report of the Institution for submission to the Federal Government in accordance with the provision of this Act; and

(b) to call for any information or direct any research to be made for the furtherance of the objects of the Act.

8-A. Appointment, power, and functions of Chairman: (1) The Chairman of the Institution shall be appointed by the Federal Government for such terms and on such terms and conditions as it may determine.

(2) The Chairman of the Institution shall exercise such powers and perform such function as may be prescribed,

CHAPTER III

CONTRIBUTIONS

9. Rate and assessment: (1) On and from the first day of July 1976, contributions shall be payable every month by the employer to the Institution in respect of every person in his insurable employment, at the rate of five percent of his wages in the prescribed manner:
Provided that no contribution shall be so payable on such of an insured person’s wages as is in excess of [one thousand five hundred] rupees:
Provided further that contributions in respect of an insured person who continues in insurable employment shall cease on his attaining the age of sixty years, or fifty-five years in the case of a woman.

(2) Where an insured person does not receive any wages from the employer for any period, the Institution shall, subject to regulations, determine the amount of wages with reference to which the contributions shall be computed.

(3) Notwithstanding any agreement to the contrary, the employer shall not deduct from the wages of an insured person or otherwise recover from him any portion of contribution,

(4) Where the mode of payment of remuneration, whether in cash or in kind, makes it difficult to determine the amount of wages for computing the contribution, the Institution may, subject to regulation, determine such wages.

10. Record and returns by employers: Every employer shall keep such records and shall submit to the Institution such returns, at such times in such form and containing such particulars relating to persons employed by him, as may be provided in regulations.

11. Registration of establishments, etc.: (1) Every employer shall, before the expiration of thirty days from the day on which this Act becomes applicable to the industry or establishment in respect of which he is the employer, communicate to the Institution the name and other prescribed particulars of the industry or establishment and of every insured person employed in the industry or establishment.

(3) Every insured person may also communicate his name and other prescribed particulars to the Institution.

(4) On receipt of a communication under sub-section (1) or subsection (2), the Institution shall register the name of the industry or establishment or the insured person in such manner, and issue to the insured person a registration card in such form, as may be prescribed.

12. Officials of Institution to check employer’s books: (1) Any official of the Institution, duly authorised by a certificate in a form specified in the regulations, may, for the purpose of inquiring into the correctness of any of the particulars stated in the records or returns referred to in .Section 10 or for the purpose of ascertaining whether any of the provisions of this Act have been complied with-

(a) require an employer to furnish to him such information as he may consider necessary; or

(b) at any reasonable time, enter any establishment or other premises occupied by such employer and require any person found incharge thereof to produce and allow him to examine such account books and other documents relating to the employment of persons and payment of wages, or to furnish to him such information, as he may consider necessary ; or

(c) examine, with respect to any matter relevant to the purposes aforesaid, the employer, his agent or any person found in such establishment or other premises or any other person whom the said official has reasonable cause to believe to be or to have been an insured person.

(2) The official referred to in sub-section (1) shall be bound to secrecy as regards all matters with which he becomes acquainted in the performance of his duties and which do not relate to matters provided for in this Act.

(3) If an employer fails to maintain records or to submit returns as required by the regulations, or otherwise fails to comply with the provisions of sub-section (1) and thereby makes it difficult to ascertain the identity of persons required to be insured or the amount of contribution payable the contribution shall be assessed on the basis of such evidence as the institution may find satisfactory for this purpose.

13. Increase of unpaid contribution and recovery of contribution, etc., as arrears of land revenue: (1) If any employer fails to pay, on the due date, the contribution payable by him under sub-section (1) of Section 9, the amount so payable by him shall be increased by such percentage or amount as may be prescribed:

Provided that in no case shall such increase exceed fifty percent, of the amount due.

(2) Without prejudice to any other remedy, the amount of the contribution due, together with the increase provided for under sub-section (1), may by recovered as an arrear of land revenue.

14. Safeguard of insured person’s right in default of payment of contributions by employer: Notwithstanding anything contained in this Act, if an insured person has communicated his name and other prescribed particulars to the Institution under sub-section (2) of Sec. 11 and has been issued by the Institution a registration card under sub-section (3) thereof and, in case of changing employment from one industry or establishment, to an other industry or establishment, has also informed the Institution about such change of employment then, in the event of default in payment of contributions by the employer in respect of such insured person, such insured person shall have and enjoy the same rights under this Act as if no such default had occurred.

15. Refund of contributions paid erroneously: An employer shall be entitled to the refund of any contribution paid to the Institution under erroneous belief that it was payable under the provisions of this Act, and shall be entitled to the refund of excess amount of the contribution where such contribution had been paid at a higher rate than the rate prescribed;

Provided that no contribution or excess amount of any contribution shall be refunded unless an application for such refund is made within six months of the date on which the contribution was paid.

16. Extinguishment of claims to contributions: Any claims of the institution for unpaid contributions shall be extinguished in the manner provided in the regulations.

CHAPTER IV
FINANCE AND AUDIT

17. Employees’ Old-Age Benefit Funds: (1) The Institution shall have its own fund, to be called the Employees’ Old-Age Benefit Fund and may incur out of the Fund such expenditure as may be necessary for the purposes of this Act.

(2) All contributions paid under this Act and all other moneys received by or on behalf of the Institution shall be paid into the Fund.

(3) The Institution shall derive its revenues from the following sources-

(a) contribution payable under this Act and the rules ;

(b) all other payments made by the employers under this Act and the regulations ;

{d) donations and bequests for the purposes of this Act.

(4) The assets of the Institution shall be utilized solely for the purposes of this Act.

(5) The moneys of the Institution shall be deposited in such banks as may be approved by the Board for the purpose.

18. Investments and loans: (1) Subject to rules, the Institution may, from time to time, invest any moneys which are immediately required for expenses under this Act, and may reinvest or realize such investment.

(2) The Institution may, with the previous sanction of the Federal Government and on such terms as it may specify, raise loans and take measures for discharging such loans.

19. Budget, accounts and audit: (1) The Institution shall draw up annually a budget showing the anticipated receipts and expenditure during the following year and shall submit it to the Board for the approval of the Federal Government.

(2) The Institution shall maintain accounts of its income and expenditure in such form and manner as may be prescribed.

(3) The books of account of the Institution shall be balanced on the thirtieth of June each year and its accounts shall be audited by auditors approved by the Federal Government at such time and in such manner as may be prescribed.

(4) The auditors shall at all reasonable times have access to the books of accounts and other documents of the Institution and may, for the purposes of the audit call for such explanation and information as they may require and may examine any principal or other officer of the Institution.

(5) The auditors shall forward to the Federal Government their report together with an audited copy of the accounts of the Institution.

20. Annual report: The Institution shall submit to the Federal Government au annual report of its work and activities,

21. Valuation of assets and liabilities: The Institution shall, at intervals of not more than five years, have an actuarial valuation made in the prescribed manner of its assets and liabilities:

Provided that the Federal Government may direct a valuation to be made at such other times as it may consider necessary.

CHAPTER V

BENEFITS

22. Old-Age [Pension]: [(l) An insured person shall be entitled to a monthly old-age pension at the rate specified in the Schedule;
Provided that-

(a) he is over fifty-five years of age, or fifty years in the case of a woman ; and

(b} contributions in respect of him were payable for not less than fifteen years.

(2) If an insured person was on the 1st day of July, 1976 or is on any day thereafter on which this Act becomes applicable to an industry or establishment, –

(i) over forty years of age, or thirty-five years in the case of a woman, clause (b) of sub-section (1) shall have effect as if for the word ‘fifteen’ therein the word ‘seven’ were substituted : or

(ii) over forty-five years of age, or forty years in the case of a women, clause (b) of sub-section (1) shall have effect as if for the word ‘fifteen’ therein the word ‘five’ were substituted].

(3) Subject to regulations, the [old-age pension] shall commence as from the month following that in which the insured person satisfies the condition for entitlement thereto, provided that no benefit shall be payable retroactively for more than six months preceding the month in which an application for [old-age pension] is submitted.

(4) Insurable employment of a person for the purposes of this Act shall commence on the date from which the first contribution in respect of him becomes payable.

(5) The [old-age pension] payable to an insured person shall be terminated at the end of the month of which the death of such person occurs.

(6) The [old-age pension] may, at the request of an insured person, be commuted on such grounds and in such manner as may be specified in the regulations.

22-A. Old-age grant: If an insured person, not otherwise entitled to old-age pension, retires from insurable employment after attaining the age of fifty-five years, or fifty years in the case of a woman, and contributions in respect of him were payable for less than fifteen years but not less than five years, he shall be entitled to an old-age grant payable in lump-sum equal to fifty per cent of his average monthly wages for every completed year of insurable employment or part thereof in excess of six months.

22-B. Widow’s pension: (1) In the case of the death of an insured person in respect of old-age pension, the surviving widow, if any, shall be entitled to a widow’s pension equal to sixty per cent of the old-age pension of the deceased insured person.

(2) A widow’s pension shall be payable as from the month following that in which the insured person dies and shall terminate-

(a) upon the death of the widow ; or

(b) when the widow remarries.

(3) In case the deceased insured person is survived by two or more widows, the widow’s person shall be divided equally among them].

23. Invalidity allowance: (1) An insured person who sustains invalidity shall be entitled to an invalidity pension at the rate to be calculated according to the formula set out in the Schedule, provided that;

(a) contributions in respect of him were payable for not less than fifteen years ; or

(b) contributions in respect of him were payable for less than five years since his entry into insurable employment and for not less than three years during the period of five years preceding the month in which he sustains invalidity ; and

(2) Subject to regulations, the [invalidity pension] shall be payable from the month following that in which the insured person satisfies the conditions for entitlement thereto :

Provided that the [invalidity pension] shall not be payable retroactively for more than six months preceding the month in which an application for the [invalidity pension] is submitted.

(3) The [invalidity pension] shall be payable so long as invalidity continues:

Provided that an insured person who has been in receipt of the [invalidity pension] for not less than five continuous years or attains the age specified in clause (a) of sub-section (1) of Section 22 shall be entitled to the [invalidity pension] for life.

CHAPTER VI
PROVISIONS COMMON TO ALL BENEFITS

24. Calculation of qualifying contribution periods: In calculating the contribution period for entitlement to a benefit under this Act, periods in respect of which [invalidity pension] has been paid to an insured person prior to his reaching the age of fifty-five years, or fifty years in the case of a woman, or periods in respect of which maternity benefit or sickness benefit or injury benefit or total disablement pension have been paid under the West Pakistan Employees’ Social Security Ordinance, 1965 (W. P. Ordinance No. X of 1955) to an insured person shall be deemed to be contribution periods to such extent as may be provided by regulations.

25. Benefit claims and payment: (1) All claims for [a benefit] under this Act shall be made in writing and shall be accompanied by such documents, information and evidence as to entitlement as may be provided by regulations.

(2) Payment of [a benefit] shall be made in such manner, and at such times and places, as may be provided by regulations.

26. Extinguishment of benefits: A right to [any benefit] shall stand extinguished where a claim therefor is not made within twelve months of the date on which the [benefit] becomes payable:

[Provided that the Institution may condone the delay and admit the claim if it is satisfied that the delay was caused for reasons beyond the control of the insured person or the surviving widow].

27. Suspension of old-age pension and widow’s pension: Subject to regulations, payment of old-age pension and widow’s pension shall be suspended when and so long as the insured person or the surviving widow entitled to it is absent from Pakistan, except where the regulations provide otherwise.

28. Non-duplication of [benefit]: (1) An insured person shall not be paid for the same period more than one of the [benefit] provided for in this Act.

(2) Where an insured person is entitled to more than one [benefit] under this Act, he shall be given the higher of such [benefit].

(3) Where an insured person is entitled to [a benefit] under this Act and to a disablement pension, under the Employees’ Social Security Ordinance, 1965 (Ordinance No. X of 1965) he shall be given the higher of the two.

(4) The [invalidity pension] shall not be payable to an insured person so long as he receives the sickness benefit under the Employees’ Social security Ordinance, 1965 (Ordinance No. X of 1965).

29. [Benefit] not attachable, chargeable or assignable: [A benefit] payable under this Act shall not be liable to attachment in the execution of a decree, nor shall it be chargeable or assignable: and any agreement to charge or assign an allowance shall be void, and on the bankruptcy of in insured person, the [benefit] payable to him shall not pass to any trustee or person acting on behalf of his creditors.

30. Repayment of [benefit] improperly received: (1) When a person has received any [benefit] under this Act to which he is not lawfully entitled, he shall be liable to repay to the institution the amount of the [benefit] in such manner as may be provided by regulations:
Provided that the Institution may waive repayment of [a benefit] where payment thereof was not due to misrepresentation on the part of the insured person receiving it and the repayment would cause undue hardship to him.

(2) Sums due to the Institution by virtue of the foregoing sub-section may be recovered by deduction from [a benefit] payable under this Act.

31. Institution’s right to be indemnified in certain cases: Where the contingency for which [a benefit] is payable under this Act was caused under circumstances creating a legal liability in some person, the Institution shall be entitled to substitute itself for the insured person in bringing; a suit for damages against that person.

32. Recovery of amount due: Any amount recoverable under this Chapter may be recovered as an arrear of land revenue.

CHAPTER VII
DETERMINATION OF QUESTIONS AND CLAIMS

33. Decision on complaints, questions and disputes: If any complaint is received or any question or dispute arises as to-

(a) whether a person is an insured person within the meaning of this Act ;

(b) the amount of wages of an insured person for the purposes of this Act

(d) the person who is the employer in respect of an insured person;

[(e) entitlement to any benefit under this Act or as to the amount and duration thereof] ‘

[(ee) registration of an industry or establishment ; or]

(f) any other matter in respect of any contribution or any [benefit] referred to in clause (e), or dues payable or recoverable under this Act relating to contributions or the aforesaid [benefit];

the matter shall be decided by the Institution, in such manner, and within such time, as the regulations may provide and the Institution shall notify its decision to the person concerned in writing, stating therein the reason for its decision.

34. Review of decisions: The Institution may, subject to regulations, on new facts being brought to its notice, review a decision given by it under Section 33:

Provided that no decision shall be so reviewed without giving the person concerned an opportunity of being heard and adducing evidence in support of, or against the decision, as the case may be.

35. Appeal to Board: Subject to rules, a person aggrieved by a decision of the Institution under Section 33 or on a review under Section 34, may appeal to the Board.

36. Assessment of invalidity: The Institution shall appoint medical boards which shall, in such manner as may be provided by regulations assess the degree of invalidity sustained by an insured person.

37. Offences: If any person-

(a) for the purpose of obtaining [a. benefit] or denial of any payment or [benefit] under this Act, whether for himself or some other person, or for the purpose of avoiding any payment to be made by himself or any other person under this Act-

(i) knowingly makes or causes to be made false statement or false representation ; or

(ii) produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in any material particular ; or

{b) fails to pay any contribution which under this Act he is liable to pay ; or

(c) recovers or attempts to recover from an insured person or deducts or attempts to deduct from his wages, the whole or any part of the contribution; or

(d) fails or refuses to submit any return required by this Act, or regulations or makes a false return ; or

(e) obstructs any official of the Institution in the discharge of his duties ; or

(f) is guilty of any contravention of, or non-compliance with, any of the provisions of this Act or the rules or the regulations ; he shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both.

38. Prosecution: (1) No prosecution under this Act shall be instituted except with the previous sanction of the Federal Government or any officer or authority authorised in this behalf by it.

(2) No Court inferior to that of a Magistrate of the First Class shall try any offence under this Act.

(3) No Court shall take cognizance of any offence under this Act except on a complaint made in writing within six months of the date on which the offence comes to the knowledge of the Federal Government or an office or authority referred to in sub-section (1)

CHAPTER IX

MISCELLANEOUS

39. Contributions, etc.: In any proceedings of insolvency against a person or proceedings for winding up of a company, any contribution or other amount payable under this Act by such person or company shall be deemed to be included among debts to be paid in priority to all other debts.

40. Exemption from stamp duty: Stamp duty shall not be chargeable upon any documents used in connection with [benefit] payable under this Act.

41. Exemption from taxes: Notwithstanding anything contained in any other law, the Federal Government may, by order in writing, exempt the Institution from any tax, duty, or rate leviable by the Federal Government or by a local authority under the control of the Federal Government.

42. Member and servants of the Institution to be public servants: The members and employees of the Board and all officers and servants of the Institution shall be deemed to be public servants within the meaning of Section 21 of the Pakistan Penal Code (Act XLV of 1860).

43. Delegation of powers: The Board may direct that all or any of its powers and functions may, in relation to such matters and subject to such conditions, if any, as may be specified be also exercisable by any officer or authority subordinate to the Institution.

44. Powers to make rules: (1) The Federal Government may, subject to the condition of previous publication, by notification in the official Gazette, make rules to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

(i) the tenure of office of members of the Board, and other than the Chairman, and other terms and conditions of appointment of the members of the Board and the manner in which the Board shall conduct its business, including the number of members required to form a quorum at the meeting thereof ;

(ii) the manner in which names of persons from whom members the Board may be appointed shall be submitted by organization of employers and employees recognized by the Federal Government for that purpose ;

(iii) powers and functions of the Board ;

(iv) fees and allowances of the members of the Board ;

(v) times and rates at which, conditions subject to which, contributions shall be payable ;

(vi) percentage or amount by which contributions in arrears may be increased under Section 13 ;

(vii) investment of surplus money, realization of investments and reinvestment of proceeds ;

(viii) terms at which and the manner in which the budget of the Institution shall be prepared and submitted to the Federal Government ;

(ix) the form and manner in which the institution shall keep accounts of its income and expenditure and of its assets and liabilities ;

(x) the times at which, and the manner in which, the accounts of the Institutions shall be audited ;

(xi) the matters which (he annual report of Institution shall cover ;

(xii) the times in which claims for [a benefit] shall be made ;

(xiii) the manner and procedure for disposal of appeals by the Board’, and

{xiv) any other matter which is required to be or may be prescribed.

45. Power to make regulations: (1) The Board may, subject to the condition of previous publication, by notification in the official Gazette, make regulations not inconsistent with the provisions of this Act or the rules.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely: –

(i) the time and places at which meetings of the Board shall be held ;

(ii) the manner in which daily wages shall be calculated for the purpose of determining the contribution payable ;

(iii) determination of wages for computation of contributions where the mode of payment or remuneration, in cash or kind. makes such computation difficult;

(iv) records to be kept and returns to be submitted by employers, time at which and the form in which such returns are to be submitted, and particulars relating to the insured persons to be stated in such returns and the manner and form for registration of employers and insured persons ;

(v) the manner in which any claim of the Institution for unpaid contributions may be extinguished ;

(vi) powers and duties of internal auditors ;

(vii) procedure and method of calculations and terms and conditions for the communication of [old-age pension] ;

(viii) the form and manner in which claims for [a benefit] shall be preferred, and the documents, information and evidence which shall accompany such claims;

(ix) the manner in which and the time and places at which payment in respect of [a benefit] shall be made ;

(x) the manner in which and the time within which complaints, questions and disputes shall be decided ;

(xi) the circumstances and the manner in which, on new facts coming to light, the Institution may review decisions ;

(xii) the method of payment of contributions and liability thereof;

(xiii) the manner in which invalidity shall be assessed and the procedure thereof; (xiv) the manner in which proof of age shall be furnished for the purposes of this Act ;

(xv) the manner in which the services of the Institution shall be organized; and

(xvi) any other matter not provided for in this Act or the rules and necessary to give effect to the provisions of this Act.

46. Power to exempt: The Federal Government may, subject to such conditions as it thinks fit to impose, by notification in the official Gazette, exempt any establishment or industry from all or any of the provisions of this Act.

47. Act not to apply certain persons: Nothing in this Act shall apply to-

(a) persons in the service of the State, including members of the armed forces, police force and railway servants;

(b) persons in the service of a local council, a municipal committee, a cantonment board or any other local authority ;

(c) persons who are employed in services or installations connected with or incidental to the Armed Forces of Pakistan including an ordinance factory maintained by the Federal Government or Railway Administration ;

(d) persons in the service of Water and Power Development Authority ;

(e) persons in the service of a bank or a banking company ;

(f) persons in the service of statutory bodies other than those employed in or in connection with the affairs of [as defined in] Sec. 2 (j) of the Factories Act, 1934 (XXV of 1934), [or a mine as defined in the] Mines Act, 1923 (IV of 1923) :
Provided that workshops maintained exclusively for the purposes of repair or maintenance of equipment or vehicles used in such statutory bodies shall not be treated as factories for the purposes of this clause;

(g) members of the employer’s family [that is to say, the husband or wife and dependent children of the employer] living in his house, in respect of their work for him ; and

[(h) persons who, on the date on which this Act becomes applicable to the industry or establishment wherein they are employed, are drawing wages exceeding [one thousand five hundred] rupees per mensem or persons who, not having been in insurable employment at any time before becoming employees of an industry or establishment to which the Act applies, become such employees on wages exceeding that amount.

SCHEDULE
(See Sections 22 and 23)

(1) The monthly rate of invalidly pension or old-age pension payable to an insured person shall be a percentage of his average monthly wages equal to 2.5 per cent for every year of contributions payable up to four years and 0.5 percent for every additional year of contributions payable, a period of six months or over to be taken as one full year. No account shall be taken of any period of insurable service completed by the insured person after becoming entitled to old-age pension.

(2) The average monthly wages of an insured person as referred to in paragraph (1) shall be calculated on the basis of wages on which contributions were payable in respect of the thirty-six calendar months immediately preceding the date on which the insured person fulfils the conditions specified in Section 22.

(3) If an insured person continues in insurable employment beyond the age specified in clause (a) of Section. 22, the old-age pension computed under paragraph (1) shall be increased at the rate of six per cent for each year of insurable employment after attaining the said age. The old-age pension at enhanced rates shall become payable in lieu of the pension payable as computed under paragraph (1), on the insured person’s attaining the age of sixty years, or fifty-five years in the case of a woman, or the actual retirement date if earlier:
Provided that the old-age pension or invalidity pension payable to an insured person shall not be less than ninety rupees for month]

48. Repeal. Omitted by the Federal Laws (Revision and Declaration) Ordinance (XVII of 1981)

Employees' Old-Age Benefits Act, 1976

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