Private companies in Punjab now oblige to distribute 5% of their profits to workers

Islamabad: After the approval of Workers’ Participation Amendment Ordinance 2020, all private limited companies are obliged to distribute 5 percent of their annual profits to the workers.

Punjab Governor Chaudhry Sarwar formally approved the Workers’ Participation Amendment Ordinance 2020 on Friday.

According to the ordinance, all private limited companies will be required to distribute 5 percent of the annual profit to the workers.

Out of which, after individual payments, the remaining amount will be bound to be deposited in the Private Limited Companies Workers Welfare Funds and this amount will be given only for the welfare of the workers in the residential colonies, schools, dispensaries and various other facilities.

Chaudhry Sarwar after signing the amendment ordinance said that the government will ensure the safety of the employees of all private limited companies and any kind of injustice will not be tolerated and government agencies will take action against those responsible.