Pakistan Plans New Pension Scheme for Informal Workers – EOBI System May Become Model

Pakistan is considering a new voluntary pension system for millions of workers who currently do not have formal retirement protection, including domestic workers, agricultural workers and self-employed individuals.

The proposal was discussed during a meeting of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force on October 1, 2026.

One of the most important parts of the discussion was the possible use of the Employees’ Old-Age Benefits Institution (EOBI) digital system as a model for the proposed pension programme.

If the plan moves forward, it could significantly expand pension coverage beyond employees working in Pakistan’s traditional formal sector.

What Is the New Pension Proposal?

The government is examining different ways to bring workers who currently have no formal pension coverage into a retirement-protection system.

The Cabinet Committee reviewed a voluntary pension scheme that could potentially cover:

• Domestic workers
• Agricultural workers
• Self-employed individuals
• Informal-sector workers
• Other workers currently excluded from formal pension schemes

The proposal is still under discussion and has not yet been launched as a final pension programme.

Why Is the Government Considering a New Pension System?

A large part of Pakistan’s workforce operates outside formal employment arrangements.

Such workers may earn income throughout their working lives but reach retirement without access to a regular pension.

Federal Minister for Law and Justice Senator Azam Nazeer Tarar said during the committee meeting that pension protection should not remain limited to formal-sector workers and that every worker should have the opportunity for a dignified and secure retirement.

The proposed reforms aim to close this gap.

EOBI Digital System Could Be Used as a Model

One of the most notable developments from the meeting was the discussion around EOBI’s existing digital infrastructure.

Officials considered using the EOBI digital system as a model for registration and management of the proposed voluntary pension scheme.

This could potentially help create a system where workers can:

• Register digitally
• Maintain contribution records
• Track pension-related information
• Build retirement benefits over time
• Access transparent pension records

However, the final design has not yet been announced.

Who Could Benefit From the Proposed Scheme?

The proposed pension reforms are particularly important for people who earn their living outside traditional salaried employment.

Domestic Workers

Domestic workers such as housekeepers and other household employees often work without formal pension arrangements.

A voluntary pension system could provide them with a structured way to save for retirement.

Agricultural Workers

Millions of Pakistanis work in agriculture, but many are outside formal pension schemes.

The proposed reforms specifically include agricultural workers among the groups being considered for coverage.

Self-Employed People

Self-employed individuals do not have a traditional employer responsible for contributing to a workplace pension.

A voluntary system could allow such workers to make contributions themselves.

Informal-Sector Workers

Workers in small businesses, informal services and other unregistered employment arrangements could also potentially benefit.

How Would Contributions Work?

The exact contribution structure has not yet been finalised.

During the Cabinet Committee meeting, officials reviewed various models involving participation from:

• Employers
• Employees
• Self-employed workers

The committee also considered how the system could remain financially sustainable over the long term.

This suggests that different contribution models may eventually be considered depending on a worker’s employment status.

Will the New Scheme Be Part of EOBI?

That has not yet been confirmed.

The government discussed using EOBI’s digital system as a model, but this does not necessarily mean every participant in the proposed scheme will automatically become a normal EOBI pensioner.

The final institutional structure will depend on future government decisions.

Workers should therefore avoid assuming that registration has already started.

Can Domestic Workers Register Now?

No new registration process for this proposed pension scheme has been officially announced yet.

The October 1 meeting focused on reviewing different models and policy options.

Important details still need to be finalised, including:

• Contribution amount
• Eligibility rules
• Registration process
• Pension calculation
• Retirement age
• Employer participation
• Government contribution, if any
• Payment method

Until an official notification is issued, workers should treat the proposal as under development.

Digital Registration Could Be a Key Feature

The government specifically discussed digital registration and transparent record-keeping as part of the proposed system.

Digital registration could be especially useful for informal workers because many do not have traditional employment documentation.

A digital system may eventually help workers keep a permanent record of their contributions even if they:

• Change jobs
• Work for different employers
• Become self-employed
• Move between cities
• Work seasonally

The exact features will depend on the final policy.

Why EOBI Matters to the Reform

EOBI already operates an old-age benefits system for insured employees.

Its existing experience with:

• Employee registration
• Employer registration
• Contribution records
• Pension administration
• Digital records

makes it relevant to the government’s pension-reform discussions.

Rather than building every part of a new system from scratch, authorities are examining whether existing EOBI infrastructure can help shape a wider pension programme.

Government Wants Broader Social Protection

The proposal is part of a broader push to increase social and financial protection for workers and older citizens.

Prime Minister Shehbaz Sharif also said on October 1 that the government was working to strengthen protection for senior citizens, including broader EOBI coverage and digital verification for pensioners.

Together, these developments suggest that pension coverage and digitalisation are becoming increasingly important parts of Pakistan’s social-protection policy.

Will the Government Contribute Money?

No final government contribution formula has been announced.

The Cabinet Committee examined different contribution models, but the final division between workers, employers and potentially the government remains undecided.

Until an official policy is approved, claims circulating online about fixed contribution rates or guaranteed pension amounts should be treated cautiously.

How Much Pension Will Workers Receive?

No official monthly pension amount has been announced for the proposed voluntary scheme.

The final pension could depend on factors such as:

• Amount contributed
• Length of contribution period
• Age at retirement
• Investment or fund structure
• Government policy
• Financial sustainability of the scheme

Any specific pension amount being circulated before the final policy is announced should therefore be considered unconfirmed.

Is There an Application Form?

At present, there is no confirmed public application form for the proposed voluntary pension scheme.

The initiative remains at the policy-development stage.

Workers should wait for an official government announcement before providing personal information or paying money to anyone claiming to register them.

Why This Reform Could Be Important

If implemented successfully, the programme could represent an important change in Pakistan’s pension system.

Traditional pension coverage is generally associated with formal employment.

The proposed system could move Pakistan toward a model where retirement protection is also available to people working independently or informally.

Potential long-term benefits could include:

• Greater financial security in old age
• Reduced dependence on family support
• Wider social protection
• Formal retirement savings for informal workers
• More transparent contribution records
• Better pension access for self-employed people

Latest Pension Reform Update – Key Points

As of October 2026:

• Pakistan is considering a voluntary pension scheme for workers without formal pension coverage.
• The proposal includes domestic workers.
• Agricultural workers are also being considered.
• Self-employed individuals could potentially participate.
• Informal-sector workers are a major target group.
• Digital registration is being considered.
• Transparent contribution records are part of the proposal.
• EOBI’s digital system may be used as a model.
• The final contribution rate has not been announced.
• No confirmed pension amount has been announced.
• Public registration has not officially started.

Frequently Asked Questions

Is Pakistan launching a new pension scheme in 2026?

The government is developing and reviewing a voluntary pension proposal for workers currently outside formal pension systems. The scheme has not yet been fully launched.

Will domestic workers receive pensions?

Domestic workers are among the groups specifically being considered for inclusion in the proposed voluntary pension scheme.

Can self-employed people join EOBI?

The government is considering pension options for self-employed people, but the final structure has not yet been announced.

Are agricultural workers included?

Yes. Agricultural workers were specifically mentioned among the groups being considered under the proposed pension reforms.

Has registration started?

No official nationwide registration process for the proposed scheme has been announced yet.

How much will workers contribute?

The final contribution amount and formula have not yet been announced.

Will EOBI manage the new pension scheme?

EOBI’s digital system is being considered as a model, but the government has not yet confirmed the final administrative structure.

Final Words

Pakistan’s proposed voluntary pension system could become an important development for millions of workers who currently have no formal retirement protection.

Domestic workers, agricultural workers, self-employed people and other informal-sector workers are among the groups being considered.

The government is also examining digital registration, transparent record-keeping and sustainable contribution models.

Most importantly for existing EOBI stakeholders, officials have discussed using EOBI’s digital infrastructure as a model for the new system.

However, the plan is still under development.

No final registration date, monthly contribution, pension amount or eligibility formula has yet been officially announced.

Workers should therefore wait for formal government instructions before registering or paying any contribution.

eobipensions.pk will continue to report new developments regarding EOBI coverage, informal-worker pensions and the proposed voluntary pension system.