EOBI Announces Pension Increase: A Step Forward for Retirees
The Employees’ Old-Age Benefits Institution (EOBI) has announced a pension increase, effective from May 1, 2025. The minimum pension will rise from Rs 10,000 to Rs 11,500, while pensions exceeding Rs 10,000 will see a 15% increase. This decision aims to provide relief to retirees amidst rising living costs.
The pension adjustment was confirmed during a meeting chaired by Federal Minister for Overseas Pakistanis, Salik Hussain. The EOBI’s performance for the fiscal year 2024–25 was reviewed, revealing a 40% increase in revenue, totaling Rs 116 billion. This financial growth facilitated the pension hike, which will benefit approximately 400,000 pensioners across the country.
Pension Fraud and Eligibility
Audit reports presented to the Public Accounts Committee (PAC) highlighted discrepancies in pension disbursements. Over Rs 2.79 billion were paid to 5,131 ineligible pensioners due to age manipulation. To rectify this, EOBI will now determine pension eligibility based on Computerized National Identity Card (CNIC) records, aligning with the National Database and Registration Authority (NADRA) data. This change aims to enhance transparency and ensure that only eligible individuals receive benefits.
Future Reforms and Coverage Expansion
Looking ahead, EOBI plans to extend its coverage to institutions with fewer than 10 employees and include sectors such as agriculture, domestic work, finance, and legal institutions. These initiatives aim to broaden the social security net and provide more workers with retirement benefits.
While the pension increase is a positive development, it is essential to address underlying issues such as pension fraud and the inclusion of informal sector workers. The shift to CNIC-based eligibility is a commendable step towards transparency. However, comprehensive reforms are necessary to ensure the sustainability and effectiveness of the pension system for future generations.
