Industries demand cut in SESSI contribution

Say social security cost puts heavy burden due to wage hike

KARACHI:

Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani has urged the Sindh government to look into the possibility of reducing the rate of Sindh Employees Social Security Institution (SESSI)'s social security contribution by at least 2% and freezing the same.

It could reduce to some extent the "substantial burden passed on to industries every year due to the hike in minimum wage and the subsequent impact on social security contribution", he said in a statement released on Friday.

"By taking into account the miseries being faced by the poor masses in the ongoing era of inflation, the business community started complying with the Sindh Minimum Wage Board's decision of raising the minimum wage to Rs37,000 from July 1, 2024, but this hike has also impacted the SESSI's social security contribution, which is currently being charged at the rate of 7%."

He asked the Sindh government to understand the hardships being faced by the industries due to the unbearably high cost of doing business and announce a relief in the form of 2% reduction in the social security contribution. He stated that industrialists were currently contributing Rs2,590 per worker each month, which he considered to be too high and unaffordable.