WORKER’S FACILITIES AND BENEFITS

WITH REFERENCE OF LAW

As on 22nd February 2023 – V.12
Sr. Description Min. No. Level Limit Rate Coverage &
# of Salary / Facilities
Employee
Wages
1 Bonus 20 or All No Salary = One One bonus per
Ref. u/s 10 – C More Workers Limit month salary year, if company
Punjab Industrial & / wage declares profit
Commercial 1. No profit no
Employment bonus
(Standing Orders) 2. If profit is
Amendment Act
more than one-
2012
month wages
then one bonus
may be
disbursed.
3. If profit is
equal to one-
month wages
then 30% bonus
may be
disbursed.
4. If profit is less
than one-month
wages then 15%
bonus may be
disbursed.
2 Compulsory 50 or All No Salary Rs. Natural /
Group More workers Limit 500,000/- Accidental death
Insurance Per head / disability
Ref. u/s 10-B (3) coverage
Punjab Industrial &
Commercial
Employment
(Standing Orders)
Amendment Act
2012
3 Gratuity 10 or All No Salary Last drawn Retirement /
Ref. u/s 12 (6) More Workers Limit gross salary Separation
Punjab Industrial & / 26 X30 Benefit
Commercial
Becomes
Employment
(Standing Orders) Eligible after six
Amendment Act months service,
2012 on prorate

Author: Amjad Bhatti, HR & IR Consultant and Trainer,

Contact No. 0300 946 8738
 basis) Ref. 1976
PLC 578
4 Provident Fund 10 or All No Salary Self-8.33% Principal
Ref. u/s 12(6) More Workers Limit Co. 8.33% amount (Self +
Punjab Industrial & (Industrial Company’s
Commercial
Practice. Contribution) +
Employment
(Standing Orders) Law’s focus profit paid at the
Amendment Act on one time of
2012 gross salary separation
after
completion
of one year
service)
5 Medical Checkup 10 or All No Salary Rs. 10/- Inoculation
Ref. u/s 23-A More Workers Limit Twice a year against TB,
Factories Act 1934 Cholera
6 Canteen 250 or All No Salary Subsidized food
Ref. u/s 24 More workers Limit and catering
Factories Act 1934 services
7 Overtime 10 or All No Salary Basic Pay + 2 hrs per day @
Ref. u/s 47 (1) More Workers Limit Statutory double, if
Factories Act 1934 Allowances weekend lost
then double OT
+1
Compensatory
Leave, if
Gazetted
holiday lost then
double OT + 2
Leaves
8 Leaves 10 or All No Salary Casual-10 With pay leaves
Ref. u/s 49 (B) (H) More Workers Limit Medical-8 per year
Factories Act 1934 Annual -14

Section 36 Maternity No limit of

PESSI 1965 leaves – 90 deliveries
days (45 day
before and
45 days
after the
delivery)

U/s 37 (2) Iddat Leaves 100% wages for

PESSI 1965 4 months 130 days
and 10 days

Author: Amjad Bhatti, HR & IR Consultant and Trainer,

Contact No. 0300 946 8738
 Compensato Worked against
ry Leaves Weekly off days
or Gazetted
holidays
May be made
availed with in
next 3 days.
9 Annual Leave 10 or All No Salary Annual Un-availed
Encashment More Workers Limit Leaves annual leaves in
excess of two
Ref. u/s 14 (2) (b) years balance
Shop and i.e 28 days @
Establishment gross salary
Ordinance
10 Cost of Living 10 or All No Salary Rs.100/1993 Part of Wages,
Allowance More workers Limit Rs. 50/1994
COLA 93,94 & 97 Rs.300/1997

11 Employees Old 5 or All Rs. Co. 5 % Monthly old age

Age More Employee 25,000/- Emp.1 %, pension,
Benefit Institute s pm Minimum Survivor
EOBI 1976 (From Pension Rs. pension, Grant
Peon to 8,500/- per Etc. Retirement
GM) month, benefit (for
Excluding applicable pension
Directors w.e.f. 1st payment of 15
January year
2020. contributions is
Pension must and for
becomes death benefits 5
due at the years payment
age Male 60 of contribution is
and female must)
55 years.
12 Fair Price Shop 100 or All No Salary No profit, Provision of
Ref. More Workers Limit whole sale essential food
The Punjab Fair rate items, as per
Price Shops detail provided
(Factories) in the law.
Ordinance 1971

Author: Amjad Bhatti, HR & IR Consultant and Trainer,

Contact No. 0300 946 8738
13 Worker 50 or All No Salary Harmonious
Management More Workers Limit working
Counsel condition,
Ref. u/s 29 redress of
PIRA 2010 grievances etc.

14 Minimum Wage All Punjab Minimum wage

Ref. Minimum Unskilled Rs.25,000 for unskilled
Wage Notification Workers w.e.f 1st July workers
2022 2022
W.e.f 01.07.2022
15 Working Hours All No Salary No Salary 48 hours per
Ref. u/s 34 Workers Limit Limit week, 8 hours
Factories Act 1934 per day

16 Punjab 10 or All Salary Co. 6 % Sickness,

Employees More Workers Range (Total Medical,
Social Security Workers from Rs. Employer’s Family and
Institution 1965 25,000/- Responsibilit parents covered
PESSI pm to Rs. y)
31,000/- Hajj – 10
per month workers every
year selected
through balloting
17 Education Cess 10 or All PESSI Rs.25/- per For welfare of
Ref. More Covered worker per workers like
The Workers' Workers Workers quarter. Max children
Children (Education) Rs.100/- per education up to
Ordinance, 1972 worker per PhD level,
year sewing
machines,
residential
colonies etc.
18 PESSI – Funeral 10 or All Rs.18,000/-
Expenses More Covered Parents covered
Ref. u/s 37 Workers Workers
PESSI 1965

Injury Benefits 100% wages for

180 days
19 Trade Union / 50 or All No Salary Executive Redress of
CBA More Workers Limit =<100, 8 individual
Ref. u/s 25 (1)(a) =<200,10 grievances,
=<300,12 collective
=<400,14
Author: Amjad Bhatti, HR & IR Consultant and Trainer,
Contact No. 0300 946 8738
 bargaining,
strike, etc.
20 Workers 10 or All No Salary As per Compensation
Compensation More Workers Limit schedule against Injuries
Act 1923 Max. Rs. and death
Ref. u/s 4 500,000/-

21 Company’s 50 or All Cat 1- 5 % of profit, Worker’s share

Profit (Worker’s More Workers 17,500/- Max =4 min in profit
Participation)(Am Cat 2 – wages Cat 1 – 4 Units
endment) 17,501 – Cat 2 – 2 Units
Ordinance 2018 22,000 Cat 3 - 1 Unit
Cat 3 –
22001
and above
22 Death Grant All No Salary Rs. In case of death,
Ref. Punjab Workers Limit 600,000/- may be paid to
Workers Welfare nominated
Board person / legal
31.10.2013 heirs
23 Marriage Grant All All Rs.200,000/- Marriage grant
Ref. Punjab Workers daughters per case
Worker’s Welfare 3 year
Board service

24 Disabled Quota Organization 3%

Ref. u/s 10 is bound to
THE PUNJAB provide
DISABLED employment
PERSONS to disables
(EMPLOYMENT Or
AND
Deposit
REHABILITATION)
(AMENDMENT)
amount =
BILL 2015 25,000 x 3
to the Govt.
Treasury

25 Apprenticeship 20% of Rs.28,253 First year Books, Shoes,

Ordinance 1962 the skilled /- stipend Toolkit, Uniform,
manpower (Min wage 50%, Calculator,
. of skilled Rs.14,126/- drawing
worker) pm instruments and
(Applicabl Second year other study
e w.e.f stipend 60% material is

Author: Amjad Bhatti, HR & IR Consultant and Trainer,

Contact No. 0300 946 8738
 22nd June Rs.16,951/- responsibility of
2022) pm the employer.
Third year
stipend
70%,
Rs.19,777/-
pm
26 Talent All All Workers Upto Rs. 3,500/- pm
Scholarship Employe Workers registered Intermediate
Punjab Workers es with with
Welfare Board 3 year PESSI or Graduation Rs. 4,500/- pm
service EOBI
Post- Rs. 5,500/- pm
Graduation

MS, M. Phill, 100 % Expense

P.hd
27 Appointment of 500 Take care the
Welfare Officer Workers workers welfare
U/s 24 – A
(Factory Act
1934)

28 Final settlement Death Grant Rs.600,000/- (Govt. of Punjab)

(Death case) Group Life Insurance Rs.500,000/- by Company
Payable to the EOBI Pension Rs.8,500/- pm
legal heirs Grant in case of contribution paid less than 15 years
through wage Funeral expenses by PESSI Rs. 18,000/-
commissioner
In addition to the above:
1. Provident Fund / Gratuity,
2. Death grant by company, if applicable
3. Leave encashment,
4. Unpaid wages, bonus and overtime, etc.

PESSI notification for enhancement of upper limit of contribution from Rs. 25,000/- Rs.
31,000/- is in process.

Author: Amjad Bhatti, HR & IR Consultant and Trainer,

Contact No. 0300 946 8738