THIS year, the federal government`s budget for fiscal year July 1, 2025, to June 30, 2026, was without an increase in the minimum wages for unskilled workers.

However, Punjab and KP have raised the minimum wage by 8 per cent, taking the present Rs37,000 to Rs 40,000. In Sindh, it was first increased to Rs42,000, and then reduced to Rs40,000.

Presently, employers` monthly contributions to the Employees` Old-Age Benefits Institution and the Employees` Social Security Institutions are made according to the minimum wage for unskilled workers. This has been uniform across Pakistan, as provinces fix wages based on the rate set by the federal government. The practice should continue, and not be left to provincial discretion, because different minimum wages will lead to more litigations related to the rate of payments between the employers, EOBI and the Sindh Employees Social Security Institution.

In the case of social security, the top court settled the contribution rate issue in March 2021, observing that it should follow prevailing minimum wages for unskilled workers. The EOBI, which continues to be administered by the federal government, is embroiled in various lawsuits pertaining to the rate of contributions after the 18th Amendment in 2010.

The EOBI Act, 1976, defines `wages` as the rates of wages declared under the Minimum Wages for Unskilled Workers Ordinance, 1969. The second proviso of Section 9 of the Act states: `Provided that no contribution shall be payable on so much of an insured person`s wages as in excess of three thousand rupees`.

In view of the aforementioned provisions, the high courts in Lahore, Islamabad and Peshawar declared in a recent judgement that the contribution is payable at 6pc of Rs3,000 (which includes 1pc of an employee`s share). However, the high courts in Sindh and Balochistan hold that the contribution is payable at 6pc of the prevalent minimum wage.

Consequently, employers across Pakistan continue to pay different rates to the EOBI. Employers have filed appeals before the Supreme Court to regulate the rate of EOBI contribution. In the meantime, the predicament of both employers and the EOBI persists; the two continue to be at loggerheads, leading to more court cases over the sole issue of rate of contribution.

So, if the rate of contribution is different in every province, the issue will, instead of being concluded, become more complicated. When the revised minimum wage is approved by the respective pro-vincial minimum wage boards, the rate of contribution on behalf of every insured employee will be Rs2,400, which is 6pc of Rs40,000 per month. At what rate will the EOBI ask the employers to pay the contribution if minimum wages vary from province to province? This old reason for needless discord between the employers and the EOBI has spanned the last 15 years, and needs to end. In addition, and due to a total lack of coordination among the provinces, disparities in labour laws have also surfaced after the devolution of power. Some of these are: a) In Punjab and KP, the annual leave is 14 days and casual leave 10 days, with 16 days of sick leave at half pay. Sick leave is granted atfull pay in Sindh. In Balochistan, a region with the lowest industrial activity, the annual leave lasts 20 days, casual leave 15 and sick leave 20.

b) The quantum of maternity leave was fixed at 12 weeks under the West Pakistan Maternity Benefit Ordinance, 1958,which is still applicable in Punjab and KP. However, Sindh has increased it to 16 weeks and Balochistan to 14 weeks.

c) In the Industrial and Commercial Employment (Standing Orders)Acts in the four provinces, an employer has to give a month`s notice to a permanent worker when it comes to the termination of employment for reasons other than misconduct. The notice period is three months in Balochist an.

d) In the same laws, payment of gratuity is a part of benefits for employees who are leaving a particular company. In Punjab, Sindh and KP, gratuity is calculated at the rate of one month`s gross salary for every year completed by an employee in service. This amount is equivalent to two months` salary in Balochistan.

e) The limit for annual payments for overtime under the provincial Shops and Establishments Acts is 624 hours in Punjab and Balochistan and 150 in Sindh.

In KP, the total number of working hours should not exceed 24 in a week.

Our provinces should establish improved coordination to avoid such glaring disparities in the status of workers` rights. • The wn~ter is a consultant in human resources at the Aga Khan University Hospital, Karachi.