Introduction: Why EOBI Pension Matters More Than Ever
In Pakistan, retirement can feel uncertain for many workers. The majority of private sector employees don’t have formal savings plans or pensions. That’s where EOBI — the Employees’ Old-Age Benefits Institution — plays a crucial role.You know about theglobespot, andaazdaily, openrendz and eobi pakistan pension increase also Buzzfeed.
Established in 1976, EOBI helps provide financial relief to aging and retired workers, particularly those in the private sector. Over time, it has become a critical support system for millions. In 2024–2025, discussions around increasing EOBI pensions have taken center stage.
This article explores the latest pension increase, policy decisions, their impact on the working class, future challenges, and how EOBI could evolve in a modern, digital economy.
What Is EOBI?
A Safety Net for Private Sector Workers
EOBI stands for Employees’ Old-Age Benefits Institution. It is a federal government organization under Pakistan’s Ministry of Overseas Pakistanis and Human Resource Development.
It provides:
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Old-age pension
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Invalidity pension
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Survivor’s pension
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Old-age grants
Employees in registered private sector companies contribute monthly to the EOBI fund, and in return, receive lifelong pension after retirement.
Recent News: 2024–2025 EOBI Pension Increase
The New Pension Rates
In July 2024, the federal government approved a significant increase in EOBI pensions. Here’s what changed:
| Year | Minimum Monthly Pension |
|---|---|
| 2023 | PKR 8,500 |
| 2024 | PKR 10,000 |
| Target for 2025 | PKR 12,000 (proposed) |
This increase was announced in the 2024-25 federal budget, following pressure from labor unions, pensioners, and media coverage.
Why the Pension Increase Was Necessary
Rising Inflation and Cost of Living
The previous minimum pension of PKR 8,500 was insufficient in an era where:
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Fuel prices crossed PKR 300/liter
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Utility bills tripled
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Food inflation hit double digits
A modest pension increase was long overdue, especially when retirees faced daily financial struggles.
Public Pressure and Legal Action
Various pensioner associations protested nationwide. Some also filed cases in courts demanding adjustment in pensions as per inflation.
The result? The government had to listen — and respond with this new increase.
Who Benefits from the Increase?
Categories of Pensioners
The raise applies to all eligible EOBI pensioners, including:
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Retired workers above 60 years (men) and 55 (women)
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Disabled persons who cannot work
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Widows or heirs of deceased pensioners
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Old-age grant recipients who didn’t meet pension criteria but contributed
Currently, over 450,000 registered pensioners receive EOBI pensions in Pakistan.
How to Apply for EOBI Pension
Step-by-Step Guide
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Ensure EOBI Registration – Check if your employer registered you.
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Complete Service Years – At least 15 years of contribution.
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Apply Online or In-Person – Visit EOBI website or regional offices.
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Submit Documents – CNIC, service history, contribution proof, employer certificate.
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Start Receiving Pension – Direct transfer to your bank account monthly.
For pension tracking, EOBI now has an online verification system that makes things easier.
Challenges Still Facing EOBI
Limited Coverage
Out of 60 million workforce, only 7 million are registered with EOBI. Many private firms:
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Avoid registration
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Underreport salaries
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Fail to deposit contributions
This illegal evasion reduces EOBI’s funding base.
Outdated Systems
Although EOBI has launched some digital platforms, it still faces:
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Manual data entry
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Poor online complaint systems
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Delayed pension processing
Low Contributions vs. High Need
The current employer and employee contributions don’t match inflation or rising medical costs. To truly support retirees, the contribution model needs reform.
Government Plans to Reform EOBI
Draft Bills Under Review
In 2025, the government submitted a draft EOBI amendment bill in Parliament, proposing:
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Stricter employer registration rules
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Steeper fines for evasion
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Pension adjustment formula based on inflation index
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Linking EOBI to NADRA and FBR databases
If passed, these reforms could transform EOBI into a modern pension system.
International Comparisons
How Does Pakistan’s EOBI Compare?
| Country | Minimum Pension (USD Equivalent) | Coverage |
|---|---|---|
| Pakistan | ~$35 | 15% workforce |
| India | ~$60 | 30% workforce |
| Sri Lanka | ~$80 | 40% workforce |
| Malaysia | ~$150 | 70% workforce |
Clearly, Pakistan lags behind. Experts say that expanding EOBI and linking it with national databases is crucial to closing this gap.
Role of Employers: What They Must Do
Responsibilities Under EOBI Act
Employers with more than 5 employees must:
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Register their workers within 15 days
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Deduct employee share (1%) and pay employer share (5%)
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Submit monthly contributions online
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Keep all employment records
Failure to comply can result in legal action and fines under the EOBI Act 1976.
Pension Disbursement: How Beneficiaries Receive Funds
Direct Bank Transfers
EOBI now disburses pensions through:
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Bank accounts (HBL, NBP, UBL, Askari Bank)
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EasyPaisa (for those without banks)
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JazzCash pilot program (launched in 2024)
This has increased transparency and reduced corruption or agent delays.
Digital Transformation: Is EOBI Getting Smarter?
EOBI Online Portal
Workers can now:
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Check their contribution status
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Track pension status
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Verify registration
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Submit complaints
EOBI Mobile App (Coming Soon)
The Ministry has announced a mobile app for:
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Biometric verification
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Document uploads
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Digital pension card issuance
This could revolutionize pension access in remote areas.
Voices from the Ground: Stories of Pensioners
Case Study 1 – Muhammad Hanif, Lahore
“I worked 30 years in textile mills. For years, I got just PKR 8,500. With this increase, I can now afford my medicine without asking my sons.”
Case Study 2 – Parveen Bibi, Karachi
“My husband passed away. His EOBI pension is my only source of income. The new rate helps me cover groceries and bills.”
Such stories show how small changes can make big impacts in real lives.
Future Proposals from Labor Unions
Labor organizations are demanding:
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Pension increase to PKR 15,000/month
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Automatic annual adjustment with inflation
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Government subsidy in EOBI fund
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Inclusion of informal workers and gig economy freelancers
These suggestions are currently under review by policymakers.
International Aid and Support
The International Labour Organization (ILO) has partnered with Pakistan to:
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Modernize EOBI systems
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Build actuarial models
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Train pension administrators
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Advise on legal reforms
This global support could help Pakistan catch up with modern pension frameworks.
Media Coverage and Social Awareness
In 2024, multiple news agencies and platforms covered:
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EOBI budget allocations
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Pension protests in Islamabad
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Ministry press briefings
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Success stories of digital pension disbursement
Public awareness is growing, and the media has played a critical role in pushing reforms.
Conclusion: Towards a Fair Pension System for All
The EOBI pension increase in 2024–2025 is a step in the right direction. But for Pakistan to ensure dignity and security for its retired workforce, more needs to be done.
Stronger enforcement, better digital infrastructure, inclusive reforms, and a fair inflation-linked pension model are essential. Every worker who spent decades building the economy deserves to retire with peace and financial stability.
As policymakers, labor unions, employers, and citizens continue to engage, EOBI could soon become a global example of social security success.
