ISLAMABAD: The federal cabinet has approved a 15% increase in pensions provided by the Employees’ Old-Age Benefits Institution (EOBI), effective from January 1, 2025. The decision was taken on the recommendation of the Ministry of Overseas Pakistanis and Human Resource Development and will be financed through EOBI’s own resources.
This raise is expected to provide relief to thousands of pensioners who rely on EOBI support in their retirement years. The increase reflects the government’s ongoing efforts to improve the welfare of retired workers amid rising inflation and cost-of-living concerns.
In addition, the cabinet decided to form a committee to propose institutional reforms for EOBI. The reforms will focus on expanding the scope and efficiency of the pension system.
Notably, the committee will also consider extending EOBI coverage to workers in the informal sector, including domestic workers, agricultural laborers, and other underserved employment groups that currently lack formal social protection.
The initiative marks a significant step toward broadening the social safety net in Pakistan and promoting inclusive welfare policies for all segments of the workforce. Further details on the reform proposals and implementation timeline are expected in the coming weeks
