We all know that it is not an easy deal to earn for the family and plan a financially secure future for them. In Pakistan, most of the people earn average and it is quite difficult for them to save. At some point, everyone thinks about how to claim an EOBI pension.
The government employees have pensionable jobs and that is security for them as they will be able to use it when they will be retired. However, there was no such known system for the private sector employees in Pakistan. A very few citizens of Pakistan know about EOBI pension or Employees Old-Age Benefits Institution so here we have explained everything for you to learn about this opportunity.
What is all about Contribution to EOBI?
EOBI is something not fully operated by the Government of Pakistan but it works on a partially funded basis. The person, as well as the employer insured under EOBI, is supposed to contribute EOBI during the period of insurable employment. The contribution proportion is as follows:
- Employers are supposed to pay 5% of the minimum wages prescribed by the government while employees are supposed to pay 1% of the minimum wages.
- This contribution constitutes half of the total contribution while the remaining half comes from the Government of Pakistan.
In addition to the contribution from employers, employees, and government, EOBI invests in profitable projects to generate income for providing a pension.
EOBI Pension: What are the Benefits?
Employees’ Old-Age Benefits Institution or EOBI provides the following benefits to the insured person or its survivors. An insured person usually becomes eligible to get a pension after reaching the age of 60 and completing 15 years of insured service.
This pension is provided at the time of retirement.
Survivors pension is provided to the nominees of the insured person after the death of the insured person. As per Islamic teachings, old parents and young widows are included in the survivor pension program. As per EOBI rules, parents of the unmarried employee gets a pension for 5 years in case of employee’s death.
- If any employee dies after 36 months of EOBI insurable service, his widow gets the survivors pension for the entire life. Children of the deceased insured individual are eligible to get the EOBI survivor pension even if the widow of the insured employee gets remarried given the stepfather of the children may not take the financial responsibility of the children.
This pension is provided in case of disability of the insured person.
Old age grant
Old age grants are given to those who have attained the retirement but do not meet the minimum threshold for a pension.
Minimum pension of ₨ 6500/- (revised w.e.f September 2018) is provided by scheme while maximum pension is limited by the average wages during employment and years of contribution to the insurance scheme.
As per 2001-02 numbers, there are over 2 lakh beneficiaries of this scheme. The details of the beneficiaries are given in the table below.
|Category||Disbursed Pension in Million Rs||Percentage share in total pension||No. of beneficiaries|
|Old age grant||6||0.7||3776|
EOBI Pension: Recent Updates by Government of Pakistan
The Ministry of Overseas Pakistanis recently announced that pensioners of Employees Old-Age Benefits Institution (EOBI) will get Rs 8,500 per month from the 1st of April onward.
According to a news report, “Employees Old-Age Benefits Institution (EOBI) Chairman Azhar Hameed said that his organization would start direct registration of employees from January 2020 and would roll out an online system from next year that would empower the registered employees.
He said this while addressing the business community at Islamabad Chamber of Commerce & Industry. He said that many reforms were being made in EOBI to make it a service-oriented organization and promote transparency in its working that would be visible after a few months.”
The process will be made convenient and foolproof for the employees to get registered online which will not only be beneficial for the pensioners but also for the department to deal with the pensions appropriately.
How to Get EOBI Pension?
You can claim your EOBI pension if you have reached the age of 60 or have completed employment tenure of 15 years after the registration for EOBI pension, you can get the pension by the following process:
- If you are eligible insured pensioner under EOBI, you can write an application for acquisition of claim form and submit it to the regional EOBI office.
- After receiving the claim form, fill it up properly while ensuring not to write anything false, and avoid mistakes.
- Attach your latest passport size photographs with the claim form.
- Attach attested copies of CNIC of yourself and spouse.
- Provide your original EOBI Registration Card with the claim form.
- Get the registration form from the office for the verification that the applicant pensioner hasn’t taken the claim form ever before.
- Get the attested salary slip of last year or salary certificate for the last month.
- Provide the name and branch code of the bank from where you want to receive a pension.
- In case if you happen to delay the submission of the claim form, write and attach an application with the excuse for the delay in the process.
- The department will be verifying and complete the process to issue pension cards within 30-days time period.
- In case of a change of residential address or that of the change in a bank branch, please contact the regional office.
- In case if your pension card gets misplaced, make sure to report to the regional office and get an FIR registered for this purpose. This is how you can claim your EOBI pension in Pakistan.
So if you want to get registered for this significant assistance by the Government of Pakistan i.e. EOBI pension, follow the process as explained or you can also visit the official website www.eobi.gov.pk. In case of any confusion, it is better to consult with the relevant department of your office and check if they are facilitating the employees with the EOBI pension registration.
Employees’ Old-Age Benefits Institution or EOBI is the pension, old-age benefits, and social insurance institution of the Government of Pakistan. It operates under the control of the Ministry of Overseas Pakistanis and Human Resource Development. Pakistani at the age of 60 can claim EOBI pension as old-age benefits.
The institution came into establishment in 1976, through the passage of the Employees’ Old-Age Benefits Institution Act of 1976 by the Parliament of Pakistan, under the Pakistan Peoples Party (PPP) government of Prime Minister Zulfikar Ali Bhutto. As of March 2019, the current Chairperson of EOBI is Mr Azhar Hameed.
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