SC directs sugar mills to pay 6% of salaries in welfare fund

The money spent on charity should instead be given to employees , remarks Justice Arab

KARACHI: The Supreme Court rejected on Friday the petition filed by Mehran Sugar Mills and directed it to contribute to employees' welfare fund at the rate of six percent of the employees' salaries.

A two-member bench comprising Justice Faisal Arab and Justice Sajjad Ali Shah heard the case.

The petitioner's counsel maintained that Mehran Sugar Mill was exempted from paying taxes applicable for the welfare of the employees. "The money spent on charity should instead be given to employees and the amount for such welfare payments should be at least six percent of the employees' salaries," remarked Justice Arab.

The Sindh Employees Social Security Institution had directed the sugar mills to pay six per cent of salary as welfare fund to its employees. However, the Tando Allahyar Sugar Mill challenged this measure in the social security court. The Sindh High Court has rejected the petition filed on behalf of Mehran Sugar Mills.

The counsel for the employees had maintained that the factory owners had to pay six percent on salaries of the employees. The counsel of the social security institution said that the sugar mill has to pay given dues for the period between 1987 and 1990.

Published in The Express Tribune, August 17^th, 2019.