on recommendation of International Labor Organization (ILO), the Employees Social Security Institution has been established in Pakistan under the Provincial Employees Social Security Ordinance 1965. The Khyber Pakhtunkhwa ESSI came into being on the break-up of one unit in July 1970.
The Institution is a self supporting autonomous body without any financial aid from the Provincial or Federal Government. It meets all expenditures from monthly contribution payable by the establishments covered under the above said ordinance at 6% of the wages of their employees