SESSI White Paper
Comprehensive Guide to Sindh Employees' Social Security Institution
Prepared for P@SHA Members | April 2026
Executive Summary
MYTH: "SESSI only applies to employees earning less than Rs. 45,000"
REALITY: SESSI applies to ALL employees in covered establishments (5+ employees in Sindh), but contribution is capped at the wage base ceiling of Rs. 45,000/month. An IT company paying Rs. 200,000/month still pays SESSI on Rs. 45,000 per employee.
Critical for IT Companies in Sindh: Karachi is Pakistan's largest IT hub. Nearly every IT company with 5+ employees must register with SESSI. This is often the single largest mandatory social security cost for Sindh-based IT firms.
1. What is SESSI?
Sindh Employees' Social Security Institution (SESSI) is the provincial social security authority under the Labour & Human Resources Department, Government of Sindh. Established under the Sindh Employees' Social Security Act, 1965.
Administration
- Department: Labour & Human Resources, Sindh
- Website: sessi.gov.pk
- Toll Free: 0800-33772
- Head Office: Karachi
- Regional offices: Hyderabad, Sukkur, Larkana, Mirpurkhas
Infrastructure
- Multiple medical facilities across Sindh
- Dispensaries & hospitals for insured persons
- Collaboration with private hospitals (panel system)
- Free medical for employees + dependents
2. Who Must Register?
| Criterion | Requirement | Notes |
|---|---|---|
| Location | Establishment in Sindh | Karachi, Hyderabad, Sukkur, etc. |
| Employee Count | 5 or more | Lowest threshold of any province |
| Coverage | All employees | Regardless of salary |
| Sector | All sectors | IT, services, manufacturing — all included |
| Exclusions | Government employees, federal establishments | Covered by their own schemes |
[Source: Sindh Employees' Social Security Act, 1965; sessi.gov.pk]
3. Contribution Structure
| Contributor | Rate | Base (ceiling) | Max Monthly |
|---|---|---|---|
| Employer | 6% | Rs. 45,000 | Rs. 2,700 |
| Employee | 0% | N/A | Rs. 0 |
| Total | 6% (employer only) | Rs. 45,000 | Rs. 2,700 |
Payment Details
- Due date: 15th of following month
- Payment mode: Bank deposit in designated branches, online transfer
- Registration deadline: Within 30 days of reaching 5-employee threshold
- New hire registration: Within 15 days of joining
4. Benefits Provided
| Benefit | Details | Duration/Amount |
|---|---|---|
| Medical Care | Free treatment at SESSI hospitals & panel clinics for employee + spouse + children | Unlimited (medical card system) |
| Sickness Benefit | Wage replacement during illness | 70% of insurable wages, up to 121 days |
| Maternity Benefit | Full wage replacement during maternity | 100% wages for 12 weeks (26 weeks under ILO discussion) |
| Disablement Benefit | Compensation for work-related disability | Based on wage & degree of disability |
| Survivors' Benefit | Support for dependents of deceased worker | Monthly pension for widow/children |
| Death Grant | Funeral and immediate support | Fixed grant amount |
[Source: Sindh Employees' Social Security Act, 1965; sessi.gov.pk — crawled April 2026]
5. Cost Calculation Examples
Example 1: Early-Stage IT Startup — 6 employees
| Employee | Salary | SESSI Base | SESSI (6%) |
|---|---|---|---|
| Developer 1 | Rs. 150,000 | Rs. 45,000 (capped) | Rs. 2,700 |
| Developer 2 | Rs. 120,000 | Rs. 45,000 (capped) | Rs. 2,700 |
| Developer 3 | Rs. 100,000 | Rs. 45,000 (capped) | Rs. 2,700 |
| QA Engineer | Rs. 80,000 | Rs. 45,000 (capped) | Rs. 2,700 |
| Office Boy | Rs. 20,000 | Rs. 20,000 | Rs. 1,200 |
| Receptionist | Rs. 25,000 | Rs. 25,000 | Rs. 1,500 |
| TOTAL | Rs. 14,500/month | ||
Example 2: Mid-Size IT Firm — 25 employees (Karachi)
| Category | Count | SESSI Base | Monthly Cost |
|---|---|---|---|
| Senior Devs (>45K) | 15 | Rs. 45,000 | Rs. 40,500 |
| Junior Devs (<45K) | 8 | Avg Rs. 35,000 | Rs. 16,800 |
| Support staff (<45K) | 2 | Avg Rs. 25,000 | Rs. 3,000 |
| TOTAL (25 employees) | Rs. 60,300/month | ||
| Annual Cost | Rs. 723,600/year | ||
Example 3: 100-Person IT Company — Scaled
Worst case (all capped at Rs. 45,000): 100 × Rs. 2,700 = Rs. 270,000/month (Rs. 3.24M/year).
Realistic (mixed salaries): ~Rs. 200,000-230,000/month (Rs. 2.4-2.76M/year).
6. Medical Facilities & Services
SESSI operates a network of medical facilities across Sindh: [Source: sessi.gov.pk]
- SESSI Hospitals: Major hospitals in Karachi, Hyderabad, Sukkur, and other cities
- Dispensaries: Primary care dispensaries in industrial areas
- Panel System: Empanelled private hospitals for specialized treatment
- Medical Card: Each insured person receives a medical card for free treatment
- Family Coverage: Spouse and children (typically up to age 18, or 21 if studying)
7. Impact on IT Industry (Sindh Focus)
📊 Why SESSI Matters for Karachi IT Companies
- Lowest threshold: 5 employees — most startups hit this within months
- Highest ceiling: Rs. 45,000 — higher than any other province
- 100% employer cost: No employee deduction (unlike EOBI's 1%)
- All staff covered: Even developers earning Rs. 500K/month generate Rs. 2,700 in SESSI
- Hidden cost: Often overlooked in startup financial planning
Tip: When budgeting for a new IT hire in Sindh, always add Rs. 2,700/month SESSI cost (per employee) to the total cost of employment, regardless of the salary being offered.
8. SESSI vs Other Provincial Social Security
| Feature | SESSI (Sindh) | PESSI (Punjab) | ESSI (KP) | BESSI (Balochistan) |
|---|---|---|---|---|
| Min Employees | 5 | 10 | 10 | 10 |
| Wage Ceiling | Rs. 45,000 | Rs. 45,000 | Rs. 30,000 | Rs. 25,000 |
| Employer Rate | 6% | 6% | 5% | 6% |
| Employee Rate | 0% | 0% | 0% | 0% |
| Max/Employee | Rs. 2,700 | Rs. 2,700 | Rs. 1,500 | Rs. 1,500 |
| 15-Employee Cost | Rs. 40,500/mo | Rs. 40,500/mo | Rs. 22,500/mo | Rs. 22,500/mo |
9. Compliance Checklist
- Determine if establishment has 5+ employees in Sindh
- Visit sessi.gov.pk or nearest SESSI office
- Submit: CNIC, SECP registration, rent agreement, employee list
- Receive SESSI registration certificate & employer code
- Register all employees (including high-salary IT staff)
- Set up monthly contribution (6% × wage base × headcount)
- Pay by 15th of following month
- Report new hires within 15 days, exits within 15 days
- Distribute medical cards to all insured employees
- File annual returns / contribution statements
10. Frequently Asked Questions
Yes. SESSI applies to all industries with 5+ employees in Sindh. IT is not exempt. The Sindh Social Security Act covers "industrial, commercial and other establishments."
The wage ceiling caps the contribution base, not the benefit. All employees get full medical coverage regardless of salary. Think of it as a flat per-employee health tax of Rs. 2,700/month.
If you have 5+ employees: SESSI (medical, employer-only). If you also have 10+ employees with some earning ≤25K: EOBI (pension, 5+1%). They are separate obligations. See EOBI White Paper →
Each employee is covered by the social security institution of the province where the establishment is located (not where the employee lives). A Karachi HQ covers all its staff under SESSI, even if some employees work remotely from Lahore.
Sole proprietors with no employees don't need SESSI. But if they hire 5+ staff (even part-time), registration is mandatory.
11. References
- SESSI Official Website — crawled April 2026
- Sindh Employees' Social Security Act, 1965
- Sindh Employees' Social Security (General) Rules, 1972
- Sindh Provincial Policy Page →
- EOBI White Paper →
- EOBI Policy Page →
Disclaimer: For informational purposes only. Rates and thresholds may change. Verify at sessi.gov.pk. Last updated April 2026. © 2026 P@SHA