The Employees' Old-Age Benefits Institution (EOBI) is the closest thing Pakistan's private sector has to a social security pension. Set up under the Employees' Old-Age Benefits Act 1976, it collects small monthly contributions during a worker's career and pays a pension for life once they retire. Yet millions of eligible workers are never registered, and many employers underpay or skip contributions altogether. This guide explains how the scheme works, what you are entitled to, and how to claim it.
What is EOBI and who does it cover
EOBI is a federal institution that runs a compulsory insurance scheme for old age, invalidity and survivors. The Employees' Old-Age Benefits Act 1976 applies to every industrial or commercial establishment employing five or more persons. Once an establishment crosses that threshold it stays covered even if the number later falls below five. Smaller businesses may join voluntarily. Coverage is a legal duty on the employer, not an optional benefit - failing to register workers can expose a business to recovery of arrears with penalties. If you are unsure whether your organisation qualifies, our labour law compliance service can review your workforce and filings.
Registration: employers and workers
Registration happens in two layers. First the employer registers the establishment with EOBI and obtains an employer registration number. Then each insured worker is registered and issued a unique EOBI registration number - often called the PI number. This number is personal and permanent: it follows the worker from one job to the next. When you change employers, the new employer should add you under your existing PI number rather than create a fresh one, so that all your years of service accumulate correctly.
Worker tip: Always confirm your employer is depositing your EOBI contributions. You can verify your registration and contribution history online through the EOBI portal using your CNIC. Gaps in your record can reduce or delay your pension years later.
Contribution rates and how they are calculated
Contributions are deliberately kept small and are pegged to the minimum wage, not to what the worker actually earns. This means a manager and a machine operator in the same firm attract the same EOBI contribution.
| Who pays | Rate | Illustrative amount* |
|---|---|---|
| Employer | 5% of minimum wage | ~ PKR 1,850 / month |
| Employee | 1% of minimum wage | ~ PKR 370 / month |
| Total per worker | 6% of minimum wage | ~ PKR 2,220 / month |
*Illustrative only, based on a federal minimum wage in the region of PKR 37,000. The minimum wage is revised in the annual budget and varies by province, so the exact rupee figure changes each year. Because the calculation tracks the minimum wage, workers earning well above it still contribute on the minimum-wage base. For a current wage figure see our minimum wage in Pakistan guide.
The four EOBI benefits
EOBI pays four distinct benefits. Which one applies depends on your age, length of service, and whether the claim is made by you or by your family.
| Benefit | When it applies | What is paid |
|---|---|---|
| Old-Age Pension | Age 60 (men) / 55 (women) with 15+ insurable years | Monthly pension for life |
| Old-Age Grant | Retirement age reached with 2 to 15 years of contributions | One-time lump sum |
| Invalidity Pension | Permanent disability before retirement age | Monthly pension, reviewed on medical report |
| Survivor's Pension | Death of an insured person | Monthly pension to widow / nominees / dependent parents |
The old-age grant is a fallback for workers who reach retirement age without completing 15 years - it is paid once, based broadly on average wage multiplied by years of insurable employment. The invalidity pension is generally reviewed every six months against medical evidence and, if the condition persists beyond five years, may convert into a lifelong pension.
How much is the pension
The pension is calculated by a statutory formula linked to years of insurable service, subject to a floor. The minimum monthly pension was increased to PKR 11,500 with effect from 1 January 2025, following a 15% rise in formula-based pensions. Workers with long, continuous service records can draw substantially more than the minimum. Because the exact amount depends on your verified contribution history, treat the minimum as a floor rather than a forecast.
An EOBI pension sits alongside - and does not replace - other end-of-service entitlements. Depending on your contract you may also be owed gratuity or a provident fund balance. Read our overview of employee benefits in Pakistan to see how these fit together.
How to claim your EOBI pension
Claims are filed at the EOBI Regional Office covering your area. Choose the correct form, attach your documents, and lodge the application:
- PI-03 - old-age pension claim
- PI-04 - invalidity pension claim
- PI-05 - survivor's pension claim
Typical supporting documents are set out below. Requirements can vary slightly by office, so confirm before you travel.
| Document | Notes |
|---|---|
| CNIC (original + copies) | Of the claimant; survivor claims also need the deceased's CNIC |
| Passport-size photographs | Usually four recent photos |
| Service certificates | From each employer, showing periods of employment |
| Wage slips / salary record | Recent months, to evidence insurable wages |
| Bank account details | For direct pension credit |
| Medical certificate | Invalidity claims only |
| Death certificate | Survivor claims only |
You can also check your pension status online by CNIC through the EOBI portal. Blank statutory forms are available at any regional office and via our legal forms library.
When contributions are missing or a claim is refused
The most common problem workers face is an employer who never registered them or stopped depositing contributions. Because the pension depends on a verified record, missing years directly reduce your entitlement. If your employer has defaulted, EOBI can pursue recovery, and you may have parallel claims for unpaid statutory dues. Disputes over registration, arrears or a refused benefit can be pursued through EOBI's own adjudication and, where appropriate, the labour judiciary. For the forum and procedure, see our guide to the labour courts and the NIRC, and our overview of labour laws in Pakistan. If you are leaving a job, make sure EOBI, gratuity and dues are all settled - our note on resignation and final settlement explains what to check.
Frequently asked questions
What is the minimum EOBI pension right now?
PKR 11,500 per month, in force since 1 January 2025 after a 15% increase. Long-service pensioners can receive more under the formula.
Is EOBI contribution based on my actual salary?
No. It is calculated on the prevailing minimum wage - employer 5%, employee 1% - regardless of your actual pay. The minimum wage varies by province and is revised annually.
What if I have fewer than 15 years of service?
With 2 to 15 years of contributions you receive a one-time old-age grant instead of a monthly pension when you reach retirement age.
Can my family claim if I die before retiring?
Yes. A survivor's pension (form PI-05) is payable to the widow, nominees and, in some cases, dependent parents of a deceased insured person.
My employer never registered me - what can I do?
Registration is the employer's legal duty. EOBI can recover unpaid contributions with penalties, and you can pursue the matter through EOBI adjudication or the labour judiciary. Seek advice early.