The HR department of an organization is responsible for registering the organization with EOBI and ensuring that both the employer and employee contributions are made on time. The HR department is also responsible for processing EOBI claims on behalf of employees.
EOBI in HR stands for Employees' Old-Age Benefits
Institution. It is a social security institution that provides pensions and
other benefits to eligible employees in Pakistan. EOBI is a mandatory scheme
for all employers and employees in the industrial and commercial sectors, with
the exception of certain categories such as government employees and domestic
workers.
EOBI contributions are made on a monthly basis by both
employers and employees. The employer contribution is 5% of the minimum wage,
and the employee contribution is 1% of the minimum wage. The minimum wage is
set by the government and varies from province to province.
Employees who are registered with EOBI and meet the
eligibility criteria are entitled to the following benefits:
Old-age pension: This is a monthly pension that is paid
to employees who have retired at the age of 60 (men) or 55 (women), and have
completed at least 15 years of insured service.
Invalidity pension: This is a monthly pension that is
paid to employees who have become permanently disabled due to an accident or
illness.
Survivor's pension: This is a monthly pension that is
paid to the spouse and dependent children of an insured employee who has died.
Old-age grant: This is a one-time payment that is made to insured employees who are not eligible for an old-age pension.
Key
Responsibilities of HR in Relation to EOBI:
- Registering the organization with EOBI and obtaining an EOBI registration number
- Providing EOBI registration forms to new employees and collecting their EOBI contributions
- Deducting the employee's EOBI contribution from their salary
- Paying EOBI contributions for both the employer and employee to EOBI on time
- Processing EOBI claims on behalf of employees
- Maintaining records of all EOBI transactions
By complying with EOBI requirements, HR departments can
help to ensure that their employees are financially secure in retirement and in
the event of disability or death.
What is The Purpose of the EOBI?
The purpose of the Employees' Old-Age Benefits
Institution (EOBI) is to provide social security to eligible employees in
Pakistan. EOBI provides pension and other benefits to employees who retire,
become disabled, or die.
EOBI is a mandatory scheme for all employers and
employees in the industrial and commercial sectors, with the exception of
certain categories such as government employees and domestic workers. Employers
and employees contribute to EOBI on a monthly basis. The employer contribution
is 5% of the minimum wage, and the employee contribution is 1% of the minimum
wage.
EOBI benefits are designed to help employees and their
families maintain a decent standard of living in retirement, in the event of
disability, or in the event of death. EOBI benefits include:
Old-age pension: A monthly pension paid to employees who
have retired at the age of 60 (men) or 55 (women), and have completed at least
15 years of insured service.
Invalidity pension: A monthly pension paid to employees
who have become permanently disabled due to an accident or illness.
Survivor's pension: A monthly pension paid to the spouse
and dependent children of an insured employee who has died.
Old-age grant: A one-time payment made to insured
employees who are not eligible for an old-age pension and EOBI also provides
other benefits, such as medical benefits and funeral grants.
EOBI plays an important role in the social safety net of Pakistan. It helps to ensure that retired employees and their families have a source of income and that employees who become disabled or die unexpectedly are financially protected.
Frequently Ask Questions:
What are the
responsibilities of the HR department in relation to EOBI?
Registering the organization with EOBI and obtaining an
EOBI registration number. Providing EOBI registration forms to new employees
and collecting their EOBI contributions. Deducting the employee's EOBI
contribution from their salary. Paying EOBI contributions for both the employer
and employee to EOBI on time. Processing EOBI claims on behalf of employees
What are the
benefits of EOBI for employees?
Old-age pension: A monthly pension paid to employees who
have retired at the age of 60 (men) or 55 (women), and have completed at least
15 years of insured service.
Invalidity pension: A monthly pension paid to employees
who have become permanently disabled due to an accident or illness.
Survivor's pension: A monthly pension paid to the spouse
and dependent children of an insured employee who has died.
Old-age grant: A one-time payment made to insured
employees who are not eligible for an old-age pension. EOBI also provides other
benefits, such as medical benefits and funeral grants.
What are the
benefits of EOBI for employers?
Reduced risk of employee turnover: Employees who know
that they are covered by EOBI are more likely to stay with their employer.
Increase employee morale: Employees who feel valued and
supported by their employer are more likely to be productive and engaged.
Improved employer reputation: Employers who are compliant with EOBI requirements are seen as being socially responsible and committed to the well-being of their employees.
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