ISLAMABAD: The Employees' Old-Age Benefits Institution (EOBI) has decided to increase the minimum pension amount, with the revised rates set to take effect from January 1, 2025. The formal announcement is expected to be made on Labour Day, May 1.
The decision was taken in a high-level meeting chaired by Federal Minister for Overseas Pakistanis, Salik Hussain. The meeting also reviewed EOBI’s financial performance over the first three quarters of the fiscal year.
EOBI officials reported that the institution had achieved a significant 40% rise in income, generating Rs116 billion in the fiscal year 2024–25. This surge in revenue has enabled the organization to increase pension payouts for its registered beneficiaries.
According to the revised plan, the minimum pension will be raised from the current Rs10,000 to Rs11,500. Additionally, pensions above Rs10,000 will receive a 15% increment. The hike is aimed at easing financial pressure on retired workers, particularly in the face of rising inflation and cost of living.
The meeting also explored expanding EOBI’s legal framework to include a broader segment of the workforce. Proposals were discussed to bring institutions with fewer than ten employees under EOBI coverage. Currently, such small entities are exempt from mandatory registration under the EOBI Act.
Furthermore, the expansion plan includes extending social security coverage to workers in the agricultural, domestic, financial, and legal sectors. This move is seen as a step toward inclusivity and improved welfare for unregistered or informal workers across Pakistan.
Officials said that these policy changes are part of the government’s broader agenda to strengthen the country’s social security system and enhance the quality of life for pensioners.
The anticipated pension hike has been widely welcomed by labour representatives and pensioners' associations, who have long advocated for adjustments in line with economic realities.
