What is PESSI?

What PESSI provides

PESSI’s core is health cover. Secured workers and their dependants are treated in social security hospitals, and treatment those hospitals cannot give is arranged elsewhere at the institution’s cost — abroad, where it is not available in Pakistan. Alongside medical care, the institution pays cash and other benefits to the people it covers.

Social security is provincial. PESSI covers Punjab, SESSI covers Sindh, and Khyber Pakhtunkhwa and Balochistan have their own institutions, so the one that applies follows where the staff work.

What the employer pays

PESSI states that the 1965 Ordinance requires employers to contribute 6% of their employees’ wages. PESSI describes it as the employer’s contribution, which sets it apart from EOBI, where the employee pays a share as well.

Which employees are covered and the wage ceiling above which nothing is charged are set by provincial law and notification, and Punjab published a Punjab Labour Code in 2026. Those rules are not stated here because they are not in our saved sources: check them with the institution before setting a scheme up. The Pakistan payroll guide covers provincial social security beside EOBI and income tax.

Setting up provincial social security in Ledgr

In Ledgr, PESSI is set up as a statutory scheme with an employer share only: a percentage of a base built from the salary components you choose, with a cap where the province sets a wage ceiling, applied to the pay groups it covers. A team with staff in two provinces keeps one scheme for each, so each institution’s figure comes out on its own ledger.