The Punjab government has moved to strengthen the protection of workers’ rights as the Punjab Assembly passed the Employees Social Security Ordinance 1965 Amendment Bill with a majority vote.
The legislation introduces key reforms under the proposed Provincial Employees Social Security (Amendment) Act 2026, aimed at aligning the decades-old framework with modern labour requirements.
According to details of the bill, the legal amendments are intended to update the 1965 Act in line with current socio-economic conditions. One of the major points highlighted in the amendments is the adjustment of the minimum wage, which has been set at Rs 40,000.
However, concerns were raised during the legislative process over inconsistencies within the existing framework. While the minimum wage has been revised to Rs 40,000, the old salary limit clause from the 1965 draft law reportedly still remains in place, creating complications in implementation. It was also noted that a maximum salary limit of Rs 22,000 continues to exist under the current structure.
Officials pointed out that these contradictions are leading to legal and departmental complications, making it difficult to fully implement reforms and proceed with administrative actions in certain cases. It was further stated that, due to lack of timely legal reforms, departmental proceedings are facing hurdles.
The bill also includes provisions regarding social security contributions, with references made to payments made since July 2022, which are expected to be validated under the new legal framework.
Parliamentary proceedings highlighted that the proposed reforms are essential for removing ambiguity and ensuring smooth governance in labour welfare systems.
The final approval of the amendment bill will be given by the Governor of Punjab before it becomes law.
Reporter: Rao Dilshad