The Employees' Old-Age Benefits Institution (EOBI) is a statutory body in Pakistan that provides social security benefits to employees. The minimum number of employees for EOBI registration is 5.
However, micro/small organizations with 5-9 employees are exempted from mandatory registration. These organizations can still register with EOBI on a voluntary basis.
The EOBI Act was amended in July 2008 to reduce the minimum number of employees from 10 to 5. This was done to reduce the compliance burden on small businesses.
If an organization has 5 or more employees, it is required to register with EOBI and pay contributions to the scheme. The contribution rate is 5% of the employee's wages, with 2.5% paid by the employer and 2.5% paid by the employee.
EOBI provides a number of benefits to employees,
including:
- Old-age pension
- Survivors' benefits
- Disability benefits
- Medical benefits
If you are an employee in Pakistan, you should check with
your employer to see if your organization is registered with EOBI. If it is,
you will be eligible to receive benefits from the scheme if you meet the
eligibility criteria.
What is The Applicability
of EOBI?
The Employees' Old-Age Benefits Institution (EOBI) is a
statutory body in Pakistan that provides social security benefits to employees.
The applicability of EOBI is as follows:
Industry or
establishment: EOBI applies to every industry or establishment employing 5
or more persons from July 2008.
Employers:
Every employer of an industry or establishment that is covered by EOBI is
required to register with the institution and pay contributions to the scheme.
Employees:
Every employee who is employed in an industry or establishment that is covered
by EOBI is required to contribute to the scheme.
Minimum Wages: The contribution rate is 5% of the employee's wages, with 2.5% paid by the employer and 2.5% paid by the employee.
There are some exceptions to the applicability of EOBI.
For example, EOBI does not apply to:
Domestic servants
Casual laborers
Employees of foreign embassies
Employees of international organizations
If you are an employee in Pakistan, you should check with your employer to see if your organization is covered by EOBI. If it is, you will be eligible to receive benefits from the scheme if you meet the eligibility criteria.
Some of The
Benefits That EOBI Provides:
Old-Age Pension:
This is a monthly pension that is paid to employees who have retired after
reaching the age of 60.
Survivor's Benefits:
These benefits are paid to the dependents of an employee who dies while in
service.
Disability Benefits:
These benefits are paid to employees who become disabled due to an accident or
illness.
Medical Benefits:
These benefits cover the cost of medical treatment for employees and their
dependents.
How Much is EOBI Per Person Contribution?
The per-person contribution to EOBI in Pakistan is as
follows:
Employer: 5% of the minimum wage
Employee: 1% of the minimum wage
The current minimum wage in Pakistan is Rs. 20,000 per
month. So, the total EOBI contribution per person is Rs. 1000 per month, out of
which Rs. 500 is paid by the employer and Rs. 500 is paid by the employee.
The maximum contribution that an employer can pay is Rs.
300 per month, and the maximum contribution that an employee can pay is Rs. 60
per month. These maximum limits are applied when the minimum wage is Rs. 6000
per month.
EOBI contributions are paid into the Employees' Old-Age
Benefits Fund, which is used to provide pensions to employees who are unable to
work due to old age, invalidity, or death. The fund also provides benefits to
the families of deceased employees.
Is EOBI Compulsory
in Pakistan?
Yes, EOBI (Employees' Old-Age Benefits Institution) is compulsory in Pakistan for all industries and establishments employing 5 or more persons. This means that all employers in Pakistan are required to register with EOBI and pay contributions on behalf of their employees.
There are a few exceptions to the compulsory EOBI
registration rule. For example, micro-enterprises with 5-9 employees are exempt
from mandatory registration, but they can still register voluntarily.
Additionally, some government employees are exempt from EOBI coverage.
Frequently Ask
Questions:
When Did The EOBI
Pension Increase Take Effect?
The EOBI Pension increase took effect on July 1, 2023.
This means that all pensioners who received their pension on or after July 1,
2023, will receive the increased amount.
What is The
Percentage Increase in The EOBI Pension?
The EOBI Pension has been increased by 62%. This means
that pensioners will now receive 62% more than they were receiving before the
increase.
Who is Eligible
For The EOBI Pension Increase?
The EOBI Pension increase is applicable to all pensioners who are receiving a pension from the Employees' Old-Age Benefits Institution (EOBI). This includes pensioners who are receiving a basic pension, a special pension, or a disability pension.
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