KARACHI: In an appeal aimed at easing financial pressures on local industries, the President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, called on the Sindh government to consider a reduction and freeze of the SESSI’s Social Security Contribution by at least 2 percent. This proposal seeks to mitigate the effects of annual minimum wage increases and corresponding rises in social security charges that significantly burden industries.

According to Karachi Chamber of Commerce and Industry, Muhammad Jawed Bilwani highlighted the intensified financial strain on businesses due to the new Sindh Minimum Wage Board’s decision to increase the minimum wage to Rs37,000 from July 1, 2024. The current social security contribution, charged at 7%, exacerbates the high costs of doing business, prompting the need for governmental intervention in the form of a 2% reduction.

Bilwani detailed that industries are now paying Rs2,590 per worker each month, amounting to significant annual expenses. For instance, an industry with 1,000 workers would contribute Rs2.59 million monthly and Rs31.08 million annually to SESSI. In industries with larger workforces, ranging from 5,000 to 7,000 employees, the financial demands are even more daunting, covering salaries, social security contributions, and utility expenses. The potential for large-scale layoffs looms unless the government acts swiftly to lessen these contributions, thereby safeguarding jobs and ensuring sustenance for workers’ families amid economic challenges.