What EOBI is and who is covered
The Employees’ Old-Age Benefits Institution (EOBI) is the state pension scheme for private-sector workers. Every industrial and commercial establishment with 5 or more employees must register itself and its employees with EOBI and pay contributions every month. It is entirely separate from the government employees’ pension: the EOBI pension is based not on your actual salary but on the minimum wage on which contributions were paid, so most workers’ pensions sit close to the minimum pension.
How the pension is calculated
- Years of insurable employment are counted; a remaining part of six months or more counts as a full year.
- The average wage is taken over the last 12 calendar months for which contributions were paid, before the date you meet the conditions for the pension.
- Pension = average wage × years ÷ 50, which is 2% of the wage for each year.
- If this is less than the minimum pension (Rs 11,500), the minimum is paid. There is no maximum: you get what the formula gives.
Example 1: a man retires at 60 with 30 years of insurable employment and an average wage of Rs 40,700 over the last 12 months. Pension = 40,700 × 30 ÷ 50 = Rs 24,420 a month.
Example 2: with 15 years and an average wage of Rs 37,000, the formula gives Rs 11,100. That is below the minimum, so Rs 11,500 a month is paid.
Example 3: 10 years and 7 months is not enough for a pension. The 7 months are more than six, so 11 years count and the one-time old-age grant is Rs 447,700.
Example 4: a woman whose employer has a fixed retirement age retires at 52 with 20 years and 6 months. The full pension would be Rs 17,094, but retiring 36 months before 55 cuts it by 18%, to Rs 14,017 a month.
Eligibility at a glance
| Benefit | Condition | Amount |
|---|---|---|
| Old-age pension | Age 60 (women 55), at least 15 years of contributions | Wage × years ÷ 50, at least Rs 11,500 |
| Reduced old-age pension | Age 55 (women 50), employer’s fixed retirement age | 0.5% less per month short, for life |
| Old-age grant | Pension age, 2 to under 15 years of contributions | One month’s average wage per year, lump sum |
| Invalidity pension | Permanent invalidity; 15 years, or 5 years with 3 in the last 5 | Same formula as the old-age pension |
| Survivor’s pension | Death of a pensioner or insured worker | The pensioner’s pension, or the minimum pension |
Workers insured on or after 1 July 2008 do not get the old relaxation of the 15-year rule (7 or 5 years for people who joined at an older age). Employment after you become entitled to the pension is not counted.
How to check your EOBI record and registration
Your employer registers the establishment on form PE-01 and each employee on form PR-01, after which EOBI issues a registration card. On the “Individual Information” page of the EOBI website you can look up your employment history (which employers paid contributions for how many months) and the status of a pension claim; EOBI says these online queries are available Monday to Friday, 9 am to 7 pm. If any period with an employer is missing, contact your nearest EOBI regional office well before you retire, because the pension counts only the years for which contributions were paid. If you paid your own 1% regularly, your employer’s default does not take away your entitlement.
Claiming the pension and getting paid
Unlike a provident fund, EOBI contributions cannot be withdrawn; they come back only as a pension or grant. At pension age, download the old-age or survivor’s pension form from the EOBI website and submit it with your CNIC and proof of employment at the regional office. A claim must be made within 12 months, and arrears are paid for at most 6 months before the month you apply, so do not delay. The pension is suspended while you live outside Pakistan.
This calculator estimates the pension awarded at retirement. Increases that the government later grants on pensions in payment are not included. EOBI decides the final amount from your record.
Frequently asked questions
How is the EOBI pension calculated?
Monthly pension = average monthly wage of your last 12 months of contributions × years of insurable employment ÷ 50. Six months or more counts as a full year. The result cannot be less than the minimum pension, Rs 11,500 a month since 1 January 2025. Because contributions are paid on the minimum wage, 30 years at Rs 40,700 gives Rs 24,420.
What is the minimum EOBI pension in 2026?
Rs 11,500 a month. The federal cabinet approved a 15% increase from Rs 10,000 in August 2025, effective from 1 January 2025, and it was paid with arrears from 1 September 2025. In August 2026 EOBI said any further increase depends on an actuarial valuation of the fund.
I have less than 15 years of contributions. Do I get anything?
Yes, if you have at least 2 years. At 60 (55 for women) you get an old-age grant: a one-time payment of one month’s average wage for every completed year of insurable employment, with a part year of more than six months counting as a year. It is paid instead of a pension, not in addition.
Can I get an EOBI pension before 60?
Only from 55 (50 for women), and only if your employer has a fixed retirement age below 60 (55) and retired you at that age. The pension is then cut by 0.5% for each month you are short of 60 (55), so retiring 5 years early takes 30% off, and the cut stays for life. Workers in mining for at least 10 years before retiring get the pension 5 years earlier without a cut.
What happens to the pension when an EOBI pensioner dies?
The surviving spouse receives a survivor’s pension equal to the pension the insured person was getting. If a worker dies while still working after at least 3 years of insurable employment (or after at least 5 years if no longer in insurable employment), the spouse gets a pension equal to the minimum pension. If there is no spouse, minor children share it until 18 (daughters until 18 or marriage), and failing them parents get it for 5 years.
How much is deducted from my salary for EOBI?
You pay 1% of the minimum wage and your employer pays 5%, so on Rs 40,700 that is Rs 407 from you and Rs 2,035 from your employer a month. The employer cannot deduct its share from your pay. The Act applies to industrial and commercial establishments with 5 or more employees.
Guides
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Sources
- Employees’ Old-Age Benefits Act 1976 as amended: sections 9, 9B, 22, 22A, 22B, 23, 26, 27 and the Schedule (EOBI)
- Finance Act 2008 amendments to the EOB Act: 5% employer rate, 5+ employees, wages of the last 12 months (EOBI)
- EOBI: Benefits and pension formula
- EOBI: Contributions, employer 5% and employee 1% of minimum wages
- APP, 28 Aug 2025: EOBI pension raised from Rs 10,000 to Rs 11,500 with effect from 1 January 2025
- Finance Division O.M. No.1(2)R5/2022-PT-0001, 21 Aug 2026: minimum wage Rs 40,700 from 1 July 2026
- EOBI online services: Employment History and Pension Claim Status
This calculator gives an estimate for guidance. It is not official advice. Rates and rules change, so confirm important decisions with the relevant authority or a qualified professional. See how we calculate, or report a mistake.