EOBI in salary stands for Employees' Old-Age Benefits
Institution. It is a social security program in Pakistan that provides pension
benefits to employees in the private sector. EOBI contributions are deducted
from the salaries of employees and their employers, and the government also
contributes to the fund.
What Does EOBI Stand For in Salary?
EOBI pension benefits are available to employees who have reached the age of 60 (men) or 55 (women) and have at least 10 years of service. Employees who are disabled or who die in service are also eligible for EOBI benefits.
EOBI pension benefits are calculated based on the employee's average salary over the last 10 years of service. The minimum EOBI pension is currently Rs. 2,000 per month. Employers are required to register their employees with EOBI and to pay their contributions on time. Employees can check their EOBI registration status and contribution history online on the EOBI website.
What Does EOBI
Stand For?
EOBI stands for Employees' Old-Age Benefits Institution.
It is a social security institution in Pakistan that provides pension benefits
to employees in the private sector. EOBI is a statutory body established under
the Employees' Old-Age Benefits Act, of 1976.
EOBI contributions are deducted from the salaries of
employees and their employers at a rate of 5% each. The government also
contributes to the EOBI fund. Employees who have reached the age of retirement
(60 for men and 55 for women) and have at least 10 years of service are
eligible for EOBI pension benefits. Employees who are disabled or who die in
service are also eligible for EOBI benefits.
EOBI pension benefits are calculated based on the
employee's average salary over the last 10 years of service. The minimum EOBI
pension is currently Rs. 2,000 per month.
What is EOBI in Salary
Slip?
EOBI contributions are listed on salary slips under the
heading "EOBI Contribution" or "EOBI". The amount of the
contribution is calculated as a percentage of the employee's salary, with the
employee contributing 1% and the employer contributing 5%.
For example, if an employee's salary is Rs. 50,000, their
EOBI contribution would be Rs. 500 (1% of Rs. 50,000). The employer would also
contribute Rs. 2,500 (5% of Rs. 50,000).
How is EOBI
Calculated From Salary?
EOBI is calculated as a percentage of the employee's
salary, with the employee contributing 1% and the employer contributing 5%.
If an employee's salary is Rs. 50,000, their EOBI
contribution would be Rs. 500 (1% of Rs. 50,000). The employer would also
contribute Rs. 2,500 (5% of Rs. 50,000).
EOBI Calculation Formula:
EOBI = (Employee's salary * Employee contribution rate) +
(Employee's salary * Employer contribution rate)
For example, to calculate EOBI for an employee with a
salary of Rs. 50,000:
EOBI = (50000 * 0.01) + (50000 * 0.05)
EOBI = 500 + 2500
EOBI = Rs. 3000
EOBI contributions are important because they provide a
safety net for retired workers and their dependents. When an employee retires,
they are eligible to receive a pension from EOBI. The amount of the pension is
based on the employee's contributions and the length of time they were covered
by the program.
Frequently Ask
Questions:
How is EOBI
calculated from salary?
EOBI is calculated as a percentage of the employee's
salary, with the employee contributing 1% and the employer contributing 5%.
What is The Maximum
EOBI Contribution?
There is no maximum EOBI contribution. The contribution
is calculated based on the employee's salary, and there is no upper limit on
the amount of salary that is subject to EOBI contributions.
What is The
Minimum EOBI Contribution?
The minimum EOBI contribution is equal to 1% of the employee's salary. This means that even if the employee's salary is below the minimum wage, they are still required to contribute 1% of their salary to EOBI.
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