How To Register a Company For Social Security In Pakistan?
How To Register a Company For Social Security In Pakistan?
Blog Article
Company Registration In Pakistan for social security is a crucial part of complying with labor laws and ensuring that your employees receive basic welfare and healthcare benefits. Social security registration is handled by the Provincial Employees’ Social Security Institutions (PESSI) in each province, under the Provincial Employees’ Social Security Ordinance, 1965. This system provides medical and financial assistance to workers in case of sickness, injury, maternity, or death.
This guide outlines how a company can register with the social security system in Pakistan, the requirements involved, and the benefits offered through this registration.
Who Needs to Register?
According to the law, every employer who operates a commercial or industrial establishment and employs five or more workers is required to register with the relevant Social Security Institution of their province. The provinces each have their own institution:
Punjab: Punjab Employees Social Security Institution (PESSI)
Sindh: Sindh Employees Social Security Institution (SESSI)
Khyber Pakhtunkhwa: KP Employees Social Security Institution
Balochistan: Balochistan Employees Social Security Institution
Voluntary registration is also allowed for businesses with fewer than five employees.
Step-by-Step Process to Register a Company
1. Prepare Necessary Documents
Before starting the registration process, gather the following documents:
CNIC copies of the employer and employees
Business registration certificate (SECP, FBR, or Partnership Deed)
NTN (National Tax Number)
List of employees with CNICs, dates of birth, dates of joining, and monthly wages
Rent agreement or proof of ownership of office or factory premises
Latest utility bill for business premises
Company letterhead and official stamp
2. Online or Manual Application
In many provinces, such as Punjab, the Company Registration In Pakistan can be started online through the PESSI online portal. For other provinces, you may need to submit a manual application at the nearest social security office.
Fill out the employer registration form (available online or at the office)
Attach required documents
Submit the application
After submission, you may receive a temporary registration number until the verification is complete.
3. Physical Verification
The respective Social Security Institution may send an inspector to verify the premises, the number of employees, and employment details. The inspector may also interview employees to confirm records.
4. Issuance of Registration Certificate
Once the verification is complete, your company will be issued an Employer Social Security Registration Certificate along with a Social Security Registration Number. This number will be used to track and manage your company’s contributions and employee records.
Registering Employees
Once the company is registered, the employer must register each eligible employee individually:
Use the Insured Person Registration Form
Provide CNIC, employment details, and wage information
Submit to the regional social security office
Each employee will be assigned a Social Security Number (SSN)
This number entitles employees to receive medical and other social security benefits.
Contribution Rates
As per current regulations:
The employer contributes 6% of the employee’s gross monthly wages
The employee does not contribute directly to social security
The amount is deposited monthly with the provincial social security institution through designated bank branches or online portals (if available).
Benefits of Social Security Registration
By registering with the social security institution, employees are entitled to the following benefits:
Free Medical Treatment: Including hospitalization, surgery, medicines, and specialist care
Maternity Benefits: For insured women and dependents
Injury and Sickness Allowance: In case of temporary or permanent disability
Death Grant: Financial support for the family of a deceased insured worker
Pension for Survivors: In some cases, long-term support for dependents
Conclusion
Registering your company by Hamza & Hamza Law Associates with the provincial social security institution is both a legal obligation and a social responsibility. It protects the health and well-being of your employees and shields your company from legal penalties. Whether you run a factory, a shop, or an office, taking this step promotes better labor relations and compliance with Pakistani labor laws. With online systems in place in some provinces, the process is becoming easier and more efficient for employers.
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