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PESSI

Punjab Employees Social Security Institution — provincial social security for Punjab-based employees.

Detailed Definition

PESSI (Punjab Employees Social Security Institution) provides social security coverage for private-sector employees working in Punjab under the Provincial Employees Social Security Ordinance 1965. Employers contribute 6% and employees 1% of wages on a capped ceiling of PKR 10,000 per month (total PKR 700 per employee), making the effective cost approximately PKR 600 employer + PKR 100 employee.

PESSI provides free medical treatment at PESSI hospitals and dispensaries, sickness benefits (75% of wages up to 121 days), maternity benefits (12 weeks at full wages), injury benefits, and death grants. Coverage is mandatory for establishments with 5 or more employees earning up to the PESSI wage threshold.

Registration is done at the nearest PESSI regional office or through their online portal, after which a monthly Form R-6A contribution return is filed. Modern HR platforms automate these filings and calculations.

Example

Our Lahore factory pays PESSI contributions of PKR 700 per covered worker every month on the capped PKR 10,000 wage ceiling.

Related Terms

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