FAQs related to Employees' Old-Age Benefits Institution (EOBI)


Sr. No.




When EOBI was established and what is the purpose of its establishment?

EOB Act 1976 was established with effect from April 01, 1976, to achieve the objective of Article 38 (C) of the Constitution, by providing for compulsory social insurance. It extends following benefits to insured persons or their survivors:-,

  • Old-Age Pension
  • Survivor's Pension
  • Invalidity Pension
  • Old-Age Grant


Is EOBI private or government institution?


EOBI is an autonomous Institution works under the control of Ministry of Overseas Pakistanis and Human Resource Development, Government of Pakistan.



What are the functions of EOBI?


The main functions of EOBI are as follow:

  1. Identification & Registration of Establishments and Industries.
  2. Identification & Registration of Insured Persons
  3. Collection of Contribution on the basis of minimum wages @ 6%
  4. EOB Fund Management
  5. Provision of Benefits as per Laws


Which organizations are liable to be registered in EOBI?


Every establishment having ten or more employees is mandatory to be registered with EOBI.


What is the current rate of Contribution?


Contribution shall be payable every month by the employer to the Institution in respect of every person in his insurable employment, at the rate of six percent of minimum wages as notified by the Federal Government i.e. five percent to be contribution by the employer and one percent to be deducted from the employees’ salaries.


What are the criteria for Old Age Pension and Old Age Grant?


An insured person shall be entitled to a monthly Old Age pension at the rate specified in the schedule. Provided that: -

(a) he is over [sixty] years of age, or [fifty five] years in the case of a woman; and,

 (b) Contributions in respect of him were [paid] for not less than fifteen years.

If an insured person, not otherwise entitled to old-age pension, retires from insurable employment after attaining the age of sixty years, or fifty-five years in case of woman and a mine worker, and contributions in respect of him were payable for less than fifteen years, but not less 4[than two] years, he shall be entitled to an old-age grant payable in a lump sum equal to his one month's average monthly wages for every completed year of insurable employment or part thereof in excess of six months


What are the criteria for Survivor Pension for spouse?

In the case of the death of an insured person while in insurable employment but after he had completed not less than thirty six months insurable employment, the surviving spouse, if any, shall be entitled to a life pension equal the minimum pension:

In case of death of an insured person, while not in insurable employment but after he had completed five years insurable employment, the surviving spouse, if any, shall be entitled to a life pension equal to the minimum pension.

In the case of the death of an insured person who had become entitled to old-age pension or [ invalidity pension] before his death, the surviving spouse, shall, if the spouse had married the deceased person before he had attained the minimum age prescribed for old-age pension, receive life pension [equal to] the pension of such person.


If there is no Surviving Spouse left behind the Insured Person/Pensioner, is pension applicable to the children of the Insured Person/Pensioner?


In case the deceased of the surviving spouse in receipt of a survivor’s pension, the minor children of the deceased insured person, if any, shall be entitled to the survivor’s pension, in the following equal shares, namely;-

(i)  In case of a male child, until he attains eighteen years of age, and

(ii) In case of female child, until she attains eighteen years of age or until marriage, whichever is earlier.

In the case of cessation of survivor’s pension of any of the children of    the deceased insured person on his attaining the age of eighteen years or marriage in case

of a female, or death, as the case may be, the share of survivors pension received by such child shall be distributed equally among the rest of the minor   children of the deceased insured person.



If there are no Surviving Spouse or minor children left behind the Insured Person/Pensioner, is pension applicable to the parents of the Insured Person/Pensioner?


In case of death of the surviving spouse in receipt of a survivor’s pension within five years after the death of the insured person and not survived by any minor child of the deceased insured person, the survivor’s pension shall be paid to the surviving parents of the deceased insured person, if any, for a period of five years from the death of said spouse.



What is the Criteria for Invalidity Pension?


An insured person who sustains invalidity shall be entitled to an invalidity pension at the rate [to be calculated according to the formula set out in the schedule].

Provided that-

            (a) Contribution in respect of him were paid for not less than fifteen years ;      or

            (b) contributions in respect of him were paid for not less than five years since his entry into insurable employment and for not less than three years during the period of five years preceding the month in which he sustains invalidity; and

            (c) in either case, he is under sixty years of age, or fifty-five years in the case of woman.

Subject to regulations, the invalidity pension shall be payable from the month following that in which the insured person satisfies the conditions for entitlement thereto:

            Provided that the invalidity pension shall not be payable retro-actively for more than six months preceding the month in which as application for the [invalidity pension]1 is submitted.

The invalidity pension shall be payable so long as invalidity continues:

      Provided that an insured person who has been in receipt of the [invalidity pension] for not less than five continuous years or attains the age of sixty, the insured person shall be entitled to the invalidity pension for life.  


Who will ascertain the degree of Invalidity?


The Institution shall appoint medical boards which shall, assess the degree of invalidity sustained by an insured person.



What are the remedies available if the benefit application/pension case is rejected or the insured persons is aggrieved with the decision of the Region?


The Institution may, subject to regulations, on new facts being brought to its notice, review a decision given by it under section 33 at one of the three Adjudicating Authorities based at Karachi, Lahore and Islamabad.

Provided that no decision shall be so reviewed without giving the person concerned an opportunity of being heard and adducing evidence in support of, or against, the decision, as the case may be.

Subject to rules, a person aggrieved by a decision of the Institution under section 33 or on a review under section 34, may appeal to the Board.


What is the formula for EOBI Pension?


The monthly rate of old-age pension or invalidity pension payable to an insured person shall be calculated in accordance with the following formula, namely: -

Average monthly wages x Number of years of insurable employment / 50


Which establishments/persons are exempt from the EOB Act?


Nothing in the EOB Act shall apply to-            

(a) persons in the service of the state, including members of the armed forces, police force and railway servants

(b) persons in the service of the local council, a municipal committee, a cantonment board or any other local authority; 

(c) persons who are employed in services or installations connected with or incidental to the Armed Forces of Pakistan including an ordinance factory maintained by the Federal Government or Railway Administration;

(d) persons in service of Water & Power Development Authority;

(e) persons in the service of a bank or a banking company;

(f) person in the service of statutory bodies other than those employed in or in connection with the affairs of a factory as defined in 1 section 2 (j) of the Factories Act, 1934 (XXV of 1934), [or a mine as defined in the]2 Mines Act, 1923 (IV of 1923):

Provided that workshop maintained exclusively for the purposes of repair or maintenance of equipment or vehicles used in such statutory bodies shall not be treated as factories for the purposes of this clause;

(g) members of the employer's family, [that is to say, the husband or wife and the dependent children of the employer] living in his house, in respect of their work for him.


What is complaint lodging mechanism in EOBI?

It is stated that the institution has a statutory complaint resolution and appeal redressal mechanism and all the same appeals are decided strictly in accordance with the law.  Under the Employees’ Old-Age Benefits (Determination of Complaints, Questions and Disputes) Regulation 2007, there is 90 days prescribed time limit for disposal of cases u/s 33, 34, and 35 which is adhered to strictly and every effort is made to decide the appeals swiftly within the stipulated timeframe. Furthermore, a Help Line- 08000 3624 is functional for lodging complaints/information by the public. Any employee can also lodge his/her complaint to Chairman, Director General, Deputy Director General and Regional Heads for redressal of his/her grievances.


What is the role of B&C’s?

The role of B&C’s is narrated below: -

  1. Appear before the President of Pakistan for representations.
  2. To attend the Senate, National Assembly and Office of the Secretary, Ministry of OP & HRD.
  3. Monitoring, Inspection and supervision of Regional Offices on collection of contribution & disbursement of pension.
  4. Evaluate & monitor activities of Regional and Field Offices.
  5. Liaison with Labor Department, Chambers, Associations of Employers & employees, federations.
  6. Provide guidance and assistance to subordinate offices.
  7. To attend the meetings held by Director General and Chairman on policy and operational affairs.
  8. To attend the meetings, workshops and seminars held by ILO, World Bank, SECP, BOI and other labour related agencies.
  9. To get the complaints investigated directly or through regions.
  10. To sanction leave/tours according to the approved financial and administrative powers.
  11. To prepare proposals of transfer of officers keeping in view their performance, for, improved combination & performance.
  12. To transfer the staff from grade 1 to 5 under the jurisdiction of B&C for smooth functioning of the affairs of the regions.
  13. To further assign and allocate the targets rationally to the regions under the administrative jurisdiction of B&C
  14. To furnish input on the administrative and operational affairs of the institution as and when desired / required.
  15. To suggest improved process & procedures in execution of operational activities in order to create transparency in the same.
  16. Assist Head Office in preparation of response on audit paras.


What official procedure to follow to obtain pending arrears of pension?

Complainant may approach the nearby Regional Office/Field Office regarding non-payment of pension arrears and same will be credited in his account in next payroll.


How to approach EOBI regarding the issue of non-submission of pension related data by the employer to the EOBI?

Complainant may approach the nearby Regional Office/Field Office for redressal of his/her grievances.


If an insured person who is receiving pension proceeds abroad, will the pension be disbursed in to his/her account?

As per Section 27 of the EOB Act, 1976 payment of Old-Age Pension and Survivor Pension shall be suspended when and so long as the insured person or survivor entitled to it is absent from Pakistan. So that pension could not be disbursed in his/her account during his/her absence.


If an insured person who is receiving pension precede abroad, will he/she receive pension along with arrears upon arriving back to Pakistan?

On arriving back to Pakistan, pensioners will be disbursed the arrears of pension on submission of formal application to the respective region.