Social security default lands Suthra Punjab contractor in court
“Unfortunately, freelancers are not provided with social security by the government and are also not treated as proper employees by organisations,” lamented Shahzad Khan, a gig economy expert. photo: file
The Punjab Employees Social Security Institution (PESSI) has initiated legal proceedings against a contracting firm working under the Suthra Punjab programme over alleged non-payment of social security contributions amounting to more than Rs66.5 million.
According to officials, the Directorate of Social Security sent multiple notices to the contractor, Care Services Consortium, for payment of outstanding dues relating to Faisalabad city, Saddar, and Tandlianwala areas, but received no response.
The department has now submitted a challan before the area magistrate for further proceedings and imposition of fines.
Director Social Security Chaudhary Ihsan-ul-Haq said the default period extended from November 2025 to date. He said fresh notices were issued on May 11, 2026, directing the company to deposit Rs7.96 million and Rs58.63 million for Faisalabad and Tandlianwala contracting areas within seven days.
However, he said, the company failed to clear the dues, adding that the case would soon be forwarded to the assistant collector for recovery of the amount as arrears of land revenue.
He further stated that meetings were also held with the managing director of the Suthra Punjab Agency regarding payment of the outstanding contributions, but no progress was made.
Meanwhile, Chairman National Labour Movement Baba Latif Ansari alleged that around 4,000 daily wage sanitation workers employed under the company had been deprived of social security and medical facilities due to non-payment of contributions for the past six months.
He claimed the workers were promised registration with social security and EOBI at the time of hiring in November 2024, but their contributions were not deposited regularly.
As a result, workers and their families, including wives, children, and parents, had been unable to access medical treatment facilities since March.
Ansari said sanitation workers, who perform duties on roads and dividers early in the morning, frequently suffer injuries during work but currently lack healthcare coverage. He also expressed concern that ration card support of Rs3,000 per month could also be suspended if contributions and records were not updated.
He urged the authorities to immediately restore workers' medical and welfare facilities ahead of Eidul Azha, when sanitation staff would be handling sacrificial animal waste under difficult conditions.
It is pertinent to mention that the Punjab Anti-Corruption Establishment had earlier registered a case against the owner of Care Services Consortium and several Suthra Punjab officials over alleged manipulation of digital Key Performance Indicators (KPIs), causing an estimated loss of around Rs1 billion to the national exchequer.
Several accused in the case are currently under arrest while investigations are underway.