What Is EOBI Contribution? Update As Per New Minimum Wage 2024

EOBI is a financial help program for workers in Pakistan’s private companies. It helps when the government doesn’t provide enough support. This program gives important money help to workers who might not get any help otherwise. 

If you’re in EOBI or thinking about it, it’s important to know What Is EOBI Contribution. Check out this guide to learn more about EOBI payments and understand this important support program better.

Who Is Eligible For EOBI Contribution? 

Employees working in the formal sector in Pakistan are generally eligible for EOBI (Employees Old-Age Benefit Institution) contributions. This includes workers in industries such as manufacturing, services, and other organized sectors. Both permanent and contractual employees can participate, provided they meet the criteria set by the EOBI. 

Both the insured person and their employer must make contributions to EOBI during the period of insurable employment. So, What Is EOBI Contribution? Employers are required to contribute 5% of the minimum wages set by the government, whereas employees are obligated to contribute 1% of these minimum wages. 

However, certain groups of workers, such as government employees, armed forces personnel, and individuals covered by other specialized pension schemes, may not be covered by EOBI. It is recommended to verify eligibility with the employer or directly with the EOBI to ensure compliance and understanding of contribution requirements.

EOBI Employer Contribution

If you’re an employer running a company or organization in Pakistan, you’re required to contribute a set percentage towards your employees’ pensions. This contribution is mandated by the government under Article 38 (C) of the law. Skipping these payments isn’t an option; it’s a legal obligation to ensure your employees have a pension plan. 

Here’s what you’re required to pay:

Employers should contribute 5% of their employees’ minimum salary towards the EOBI pension program. This amount will be deducted monthly from the employers’ side and saved for the employees’ pensions.

What Is The Contribution From The Government Of Pakistan? 

The Pakistani government plays a role in supporting pensions for private-sector workers. While employees and employers jointly fund the first 50% of pension contributions, the government covers the remaining 50%.

This means that after workers and employers have contributed their share, the government steps in to match it, ensuring that retired employees receive their entitled pensions. It’s a collaborative effort between employees, employers, and the government to ensure financial security for retired workers in the private sector.

EOBI Contribution Payment Slip Form Bank Alfalah 

If you have a Bank Alfalah EOBI card, you can see your payment slip on the Bank Alfalah website. Here’s how to do it:

1. Visit the Bank Alfalah website.
2. Click on the Login button, then select how you want to sign in to your pension account.
3. From your account dashboard, you can view the payment slip for contributions and past records.

What Is The Monthly Pension Of EOBI?

The government wants to increase the monthly pension from the Employees Old-Age Benefits Institution (EOBI). Right now, it’s Rs8,500, but they plan to raise it to Rs10,000 in the next year’s budget. 

This raise will give retirees more money each month, helping them live better. It shows the government cares about improving pensions and supporting older people who’ve worked hard all their lives. 

EOBI Minimum Wage Notification

Since 1 July 2023, the Employee’s Old Age Benefits Institution (EOBI) has implemented a significant change in the minimum wage for unskilled workers, raising it from PKR 25,000 to PKR 32,000 in accordance with the 1961 ordinance. This adjustment reflects the institution’s commitment to ensuring fair compensation for workers. This modification has applied to all employees since July 1, 2023.

Under this new structure, employers are required to contribute PKR 1,600, which is 5% of the updated wage, while employees contribute PKR 320, constituting 1% of their salary. This revised wage system aims to strike a balance between employer contributions and employee deductions, aligning with the evolving economic landscape and cost of living adjustments.

In conclusion, I believe EOBI is essential for providing financial security to workers in Pakistan’s private sector. Understanding what is EOBI contribution and staying informed about eligibility is crucial. By complying with EOBI requirements, one can be ensured a stable future for themselves.

Please let us know in the below comments if you need more help in understanding What Is EOBI Contribution.