SHAHBAZ GARMENTS (PVT.) LTD. vs GOVERNMENT OF SINDH Ss — 2021 PLC(CS) 157 SUPREME-COURT

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SHAHBAZ GARMENTS (PVT.) LTD. VS GOVERNMENT OF SINDH Ss. 2(9)(e), 5, 20(1) & 75---Provincial Employees' Social Security Ordinance (X of 1965) [since repealed], Ss. 2(8)(f), 20 & 71---Provincial Employees' Social Security (Contributions) Rules, 1966 [as applicable in Sindh], Rr. 3, 4(3) & Sched.---Sindh Minimum Wages Act (VIII of 2016), S. 6---Minimum Wages Ordinance (XXXIX of 1961) [since repealed], S. 6---Social security---Rate of contribution---Rate of contribution for the period between the enactment of the Sindh Employees' Social Security Act, 2016 (from 12-04-2016) up to its amendment by the Sindh Employees Social Security (Amendment) Act, 2018 (from 17-05-2018)---Rate of contribution became unalterably fixed at six percent in the Sindh Employees' Social Security Act, 2016 ('the 2016 Act'); this consolidated in the parent statute (i.e. the 2016 Act') the position that had already emerged in Sindh since 1976, i.e., of the rate being fixed---Only difference was that previously this was the combined result of the Provincial Employees' Social Security Ordinance, 1965 ('the 1965 Ordinance') and the Provincial Employees' Social Security (Contributions) Rules, 1966 ('the 1966 Rules')---Fixed rate was seven percent from 1976 to 2008, and thereafter was six percent---Under the previous regime the situation could have been altered by suitable amendments to the 1966 Rules, though of course the "cap" imposed by the parent statute (i.e. the 2016 Act) of six percent could not be changed in such way---However, even the 1966 Rules were not changed, and entire position was consolidated and incorporated in the parent statute in 2016---When the 2016 Act came into force and up to the changes made by the Sindh Employees' Social Security (Amendment) Act, 2018 ('the 2018 Act'), a combined reading of S. 20(1) of the parent statute (i.e. the 2016 Act') and R. 4(3) of the 1966 Rules ensured that, as before, the rate of contribution was six percent, to be computed on the basis of the minimum wage---Amendments of the 2018 Act consolidated this position in the parent statute (i.e. the 2016 Act) by the introduction of the second proviso to S. 20(1), which, in effect, expressly incorporated in statute what had earlier been set out in the 1966 Rules.

SHAHBAZ GARMENTS (PVT.) LTD. vs GOVERNMENT OF SINDH Ss — 2021 PLC(CS) 157 SUPREME-COURT

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