Benefits of EOBI in Pakistan

EOBI, the employees’ Old-Age benefits institution, is known as the pension given to those employees who are at their old age and not serving now by the government of Pakistan.

It is under the control of the Ministry of Overseas Pakistanis and Human Resources Development. It came into being in July 1976 by the Parliament of Pakistan.

It was under the act of parliament in compliance with article 38-C of the constitution of the Islamic Republic of Pakistan. EOBI was publicized on 8th April 1976.

It was officially published on 19th April in 1976 and took effect on the 1rst of July in 1976. EOBI is recognized as a long-term benefit giving institution.

This came into the formation through the passage of the Employees’ Old-Age Benefits Institution Act of 1976 under the government of Prime Minister Zulfiqar Ali Bhutto, Pakistan People’s Party.

Headquarters of Employees’ Old-Age Benefits Institutions is in Karachi. From March 2019, the current chairperson and agency executive of EOBI is Mr. Azhar Hameed.

For 44 years, EOBI operates on the basis of partial financing. Contributions are to be made to EOBI during the period of insurable employment.

These contributions to EOBI are supposed to make by the insured person as well as the employer of the insured person.

Coming towards the amount of contribution to pay, employers are supposed to pay 5% of the minimum wages prescribed by the government.

While employees are supposed to pay 1% of the minimum wages, half of the total contribution is established by these contributions while the remaining half comes from the Government of Pakistan.

Till 1995, the government of Pakistan contributed to this scheme but withdrew after that. In addition to these contributions given by employers, employees, and government, EOBI also offers an investment.

That is, EOBI invests in projects that are profitable to generate income for providing a pension.

Top Benefits of EOBI You Should Know

After completion of 15 years of insured service and after reaching the age of 60, an insured person is typically eligible to get the pension.

These benefits are also provided to those whose income discontinues due to old age or invalidity or in case of death. It is a public institution with a sure and continuous flow of income.

Benefits provided to the insured person or its survivors by Employees’ Old-Age Benefits Institution are described below.

Old age Pension

This pension is provided at the event of retirement at the age of 60 for men and 55 for women.

Age for those miners who are in mining occupation is eligible at the age of 55 years for at least ten years immediately preceding retirement.

This type of pension is not allowed for more than six months of retroactively.

Following is the required insurable employment period for entitlement to old-age pension:

  • If you are joining below 40 years of age, you should be giving 15 years of insurable employment.
  • If you are joining between the age of 40 to 45 years, it is a must to give seven years of insurable employment.
  • If you are joining the above 45 years of age, then you are allowed to give your employment services for five years.

From July 2008, the facilities of 5 and 7 years of insurable employment have been withdrawn. Now only those are eligible for old-age pension who gives insurable employment for 15 years.

Survivors Pension

In case of expiration of old age pensioner or invalidity, pensioner expires then 100% of the pension is allowed to the survivor of that expired pensioner.

This pension is eligible for those survivors of the insured person who expires while in insurable employment, and he had at least three years of insurable employment at his credit.

Or if the insured person is deceased while not in insurable employment, but he had at least five years of insurable employment, his surviving spouse would be allowed to get a minimum pension of Rs.3600.

According to the teachings of Islam, old parents and young widows are included in the survivor pension program. The following are the conditions of who is eligible for this pension:

  • According to the rules, the parents of the unmarried employee gets a pension for five years in case of the death of the employee.
  • If an employee is decreased after 36 months of the EOBI insurable service, then his widow is allowed to get the survivors’ pension for the entire life.
  • If the widow of the insured employee is remarried and the stepfather of the children is not financially supporting them, in this case, the children of the deceased insured individual are allowed to take the EOBI survivor pension.

Invalidity Pension

In the case of disability or disorder of the insured employee, this invalidity pension is provided. It is allowed to that insured person who has dropped his regular earnings to 2/3 due to any inefficiency.

This is applicable to those insured persons whose period of insured employment is not less than 15 years.

If any insured employee doesn’t have 15 years of employment but has at least five years of insured services to his credit but not less than three years.

These conditions account for contributions in respect of him are payable for preceding immediately to his sustainability.

This pension is renewed on the basis of the medical report on the degree of invalidity, after every six months.

Continuation of invalidity pension for five years would convert it into life invalidity pension. Moreover, invalidity pension doesn’t allow to reward for more than six months retroactively.

Old age grant

Those insured persons who are not entitled to old-age pension are allowed to get old age grant. Moreover, he has attained 60 years of age and five years in the case of women.

In other words, it is given to those who have attained the superannuation age but do not meet the minimum threshold for the pension.

According to the scheme revised from September 2018, minimum pension of RS.6500 is provided while the maximum pension is limited by the average wages during employment and years of contribution to the insurance scheme.

On the basis of minimum wages, the average wage is calculated on which contribution is payable in respect of twelve calendar months.

For each completed year of insurable employment, an old-age grant is payable in lumpsum @ average minimum wages of one month.

As per 2001-02, the old age grant’s disbursed pension was about 6 million, and the percentage share in total pension was 0.7% while the number of beneficiaries was 3776.

In short, compiling the number of beneficiaries between these years is over two lakhs, while the total percentage share was 100%.


If no survivor spouse is left behind the deceased pensioner, then the survivor pension would be allowed to his minor children to be distributed equally, a boy is facilitated by the age of 18.


If the dead insured individual is not left with any survivor spouse or children, then the pension would be paid to the parents of that deceased pensioner for five years.


The daughter of the deceased pensioner is facilitated until the age of 18 or until she got married, whichever is earlier.


Survivor pension to the disabled child of the deceased pensioner is allowed for the entire life.

Calculation of old age and invalidity pension

Old age pension or invalidity pension is calculated as average monthly wages based on the wages of the last 12 months multiplied by the number of insurable employment years, which is then divided by 50.


Since January 2012, the minimum pension per month is Rs. 3600, while the maximum pension per month with effect from July 2014 is Rs. 6240.

Coming towards minimum wages, since 2012 its been fixed to Rs. 8000.


Growth of the number of employers and employees registered with EOBI started to grow since its inception in 1977.

In 1977 number of participating employers ere 5447, and insured employees were 8807 with no number of beneficiaries.

Forty-two thousand six hundred thirty-two employers participated in 1999, and insured employees were 1,465,087 with 164,203 number of beneficiaries.

After a couple of years, participating employers were 43560, and insured employees raised to 1,572,014 with 181,547 number of beneficiaries.

Talking about the growing percentage of participating employers was 2.2%, and insured employees were 7.3%, while the percentage composed of beneficiaries is 10.6%.

Limitations and Criticism of EOBI

The average income grew from Rs 888 to Rs 1000 distributed by the pension scheme, which is very low. There is no supply of indexation with an increase in the cost of living.

The moment when they get retired from work, which is the time they need the health insurance benefit the most, provisional employees lose the health insurance benefit.

Challenges to EOBI:

Low contribution to EOBI, resulting in lower contribution compared with the liabilities for the beneficiaries, is one of the major challenges faced by Employees’ Old-Age Benefits Institution.

A guess has been made that the current contributions and return from the investment will not be adequate to cover the benefit payment and administrative expenses by 2024.

Complete exhaustion of funds is estimated by the year 2035.

Alleviate actions taken by EOBI

The reduction of administrative expenses is being carried out by computerization and administrative reforms.

As a result of this, the administrative expenditure, which was around 22% of the contribution from 2002 to 2003 was decreased to 17% in 2003 to 3004.

To ensure the profitability of the scheme of EOBI, additional work is required to reduce the administrative expenses.

Maintenance of Records and Submission of Returns by Employers

Mention For inspection and verification by the institutions, every employer should maintain and keep records in the future for the following purposes:

  • Employers should maintain it to the payroll of all persons employed by him, showing full details of the disbursement of wages to them.
  • Submission of duplicate copies of the returns to the institution.
  • Such records that an employer may be required to maintain under the Act or rules which the institution may require the employer to maintain from time to time.
  • Such other particulars may be necessary for the aim of the proper identification of all persons in his employment employed by him may include the person in his employment, their occupations, their wages, attendance, dates of entry and exit, and their registration numbers.

Every employer should look after the records required to be maintained by him under his directive of all the persons in his insurable employment.

These records should be concerned with the period for which contributions are payable and have been paid, for the duration of two years or until all the persons in his employment has been duly issued PI-03 cards.

Whichever occurs later, so the institution may direct an employee to preserve such records for a longer time if so required.

Every employer has to submit a quarterly return in form PR-02 to the institution, containing full particulars of each person in his insurable employment along with receipt copies.

These copies of receipt should be of the contribution payment slips in form PR-03, authorized by the sub-rule 4 of the 3rd rule of EOBI rules.

How do I get an EOBI card in Pakistan?

You have to get your self registered with the EOBI database to get an EOBI Sahulat card. To get registration, visit the EOBI website at eobi . gov . pk

Using your CNIC number, check your EOBI registration number by clicking “individual information.”

Or to activate the EOBI pension card, you can call on their 24/7 customer support helpline at 021-111-225-229.

What is social security in Pakistan?

Social security laws are for both full and partial pension. For attaining full pension, the insured employee should have reached the age of 60 and 55 years in the case of women with at least 15 years of contribution.

The concept of social security is based on ILO Convention 102 in 1952, which envisages nine contingencies.

Which includes medical care, unemployment benefit, employment injury benefit, maternity benefit, survivors benefit, sickness benefit, old-age benefit, family benefit and, invalidity benefit.