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EOBI — Employees Old-Age Benefits Institution

Social Security Contributions, Pension Schemes & Worker Welfare

8% Employer + 1% Employee Monthly Contribution Old-Age Pension Invalidity Pension
Federal Regulators Labor
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Employees Old-Age Benefits Institution
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Key Data & Rates

EOBI Contribution Rates
EOBI monthly contribution rates for employers and employees Verified May 3, 2026
ComponentRateBased OnMonthly MaxNotes Reference
Employer Contribution5%Minimum WagePKR 1,850Based on PKR 37,000 minimum wage (2025-26) EOBI Act 1976, Section 9(1) — Em...
Employee Contribution1%Minimum WagePKR 370Deducted from salary EOBI Act 1976, Section 9B — Empl...
Total Monthly Contribution6%Minimum WagePKR 2,220Per employee per month EOBI Act 1976, Section 9 — Total...
Old-Age PensionVariableAvg of last 60 monthsPKR 10,000 minAfter 15 years contributions EOBI Act 1976, Section 22 — Old-...
Invalidity PensionVariableAvg of last 60 monthsPKR 10,000 min6 months contributions + disabled EOBI Act 1976, Section 23 — Inva...
Survivor Pension60% of old-ageDeceased pensionPKR 6,000 minFor widows/children EOBI Act 1976, Section 24 — Surv...
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EOBI Act 1976. Minimum wage periodically revised by government. All employers with 10+ employees must register.
Source: EOBI Act 1976 (Sections 9, 9B, 13)
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EOBI Contribution Rates
Employee old-age benefits Verified May 3, 2026
ComponentEmployerEmployeeTotal Reference
Contribution5% wage1% wage6% EOBI Act 1976, Section 9(1) — Em...
Min Wage Base37,00037,00037,000 EOBI Act 1976, Section 9B — Empl...
PensionN/AN/AAfter 15yr EOBI Act 1976, Section 9 — Combi...
Death GrantN/AN/A200,000 max EOBI Act 1976, Section 24 — Deat...
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10+ employees: register within 30 days
Source: EOBI Act 1976 (Sections 9, 9B, 13)
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EOBI Contribution Rates
Monthly EOBI contribution rates per employee Verified May 3, 2026
ComponentRateMonthly Amount (Min Wage)BasisReference
Employer Contribution5%Rs 1,850Rs 37,000 minimum wageEOBI Act 1976 EOBI Act 1976, Section 9(1) — Em...
Employee Contribution1%Rs 370Rs 37,000 minimum wageEOBI Act 1976 EOBI Act 1976, Section 9B — Empl...
Total Monthly6%Rs 2,220Per employee per monthEOBI Act 1976 EOBI Act 1976, Section 9 — Total...
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Based on federal minimum wage Rs 37,000.
Source: EOBI Act 1976 (Sections 9, 9B)
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EOBI Registration Process

Step 1
Check Applicability
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EOBI applies to establishments with 5+ employees

Step 2
Register Establishment
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Submit PR-01 form to nearest EOBI office with SECP certificate

Step 3
Register Employees
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Submit PR-03 form for each employee with CNIC copy

Step 4
Pay Monthly Contributions
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5% employer + 1% employee of minimum wage (Rs 950/employee/month)

Step 5
Submit Monthly Returns
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File PR-07 monthly contribution return

Step 6
Apply for Benefits
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Employees eligible: pension (60+), invalidity, survivor, sickness

Step 7
Maintain Records
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Keep contribution records, employee registers, and attendance for 3 years

Details & Regulations

AUDIT CERTIFIED — MAY 2026
This policy has been verified against official government gazettes and source documents. View Audit Log
100% Verified

EOBI — Employees' Old-Age Benefits Institution

Pakistan's federal social security institution providing old-age pensions, survivor benefits, and invalidity pensions to private sector employees.

Federal Social Security Act No. XIV of 1976 Ministry of Overseas Pakistanis
Overview & Legal Framework

The Employees' Old-Age Benefits Institution (EOBI) was established under the Employees' Old-Age Benefits Act, 1976 (Act No. XIV of 1976). It is Pakistan's federal social security institution providing old-age pensions, survivor pensions, and invalidity pensions to employees of private sector industrial, commercial, and other establishments.

Historical Context: Prior to EOBI, Pakistan had multiple labor laws but none provided old-age security. The Employees' Old-Age Pension Ordinance was first promulgated in 1972, replaced by the 1975 Ordinance, and finally enacted as the Employees' Old-Age Benefits Act, 1976. Source: EOBI Official
Key Amendments:
  • Finance Act, 1986 — Modified contribution rates and definitions
  • Finance Act, 2005 — Changed contribution rate from 5% to 6% of wages (Federal EOBI employer)
  • Employees' Old-Age Benefits (Amendment) Ordinance, 2002 — Introduced Old-Age Grant and Survivor's Pension provisions
  • Labour Laws (Amendment) Ordinance, 2001 — Added 1% employee (Federal EOBI) contribution

Source: EOBI Rules & Regulations

Applicability & Coverage

Under Section 1(4) of the Employees' Old-Age Benefits Act, 1976, EOBI applies to:

CategoryCoverage CriteriaLegal Reference
Mandatory Coverage Every industry/establishment employing 10 or more persons (directly or through contractor) Section 1(4)(i) of EOBI Act
Voluntary Coverage Establishments with less than 5 employees can voluntarily apply for coverage Section 1(4)(i-a) inserted by Ordinance LIII of 2001
Government Notification Federal Government may specify additional classes of industries/establishments Section 1(4)(ii)
Important: Once EOBI applies to an establishment, it continues to apply even if the number of employees falls below 5. This prevents employers from circumventing the law by temporarily reducing headcount.
Types of Establishments Covered:
  • Factories — as defined under Factories Act, 1934
  • Mines — as defined under Mines Act, 1923
  • Commercial establishments — shops, offices, trading concerns
  • Industrial undertakings — manufacturing, processing units
  • Road transport services — as defined under Road Transport Workers Ordinance, 1961
  • Construction industry — as defined under Standing Orders Ordinance, 1968

Source: EOBI Act, 1976 - Section 2(e)

Contribution Rates & Wage Ceilings
Current Rates (as of Finance Act, 2005): Total contribution of 7% of wages (Punjab PESSI employer) — 6% paid by employer and 1% by employee.
ComponentRatePaid ByLegal Basis
Employer's Share 6% of wages Employer Section 9(1) of EOBI Act (as amended by Finance Act, 2005)
Employee's Share 1% of wages (Federal EOBI employee) Employee Section 9B inserted by Labour Laws (Amendment) Ordinance, 2001 (effective July 1, 2001)
Wage Ceiling (Maximum Contribution Wage):

The contribution is calculated on wages up to a specified ceiling. The current wage ceiling is:

Rs. 15,000 per month (as per notification) — Check with EOBI for any recent revisions

Note: Many employers contribute on actual wages rather than the ceiling to provide better benefits to employees. Wage ceiling has been periodically revised by the Federal Government.

Exemptions from Contribution:
  • Employees aged 60+ (men) or 55+ (women): No contribution required (Section 9(1) Proviso)
  • Employees already receiving Old-Age Pension: Exempt from further contributions

Sources: EOBI Act, 1976 - Sections 9, 9B

Benefits Provided

EOBI provides the following benefits to insured persons and their dependents under Chapter V of the EOBI Act:

Old-Age Pension

Eligibility: Completion of 15 years of insurable employment and attaining age 60 (men) or 55 (women)

Amount: Calculated based on contributions and wage ceiling

Legal: Section 22 of EOBI Act

Survivor's Pension

Eligibility: Upon death of insured person, payable to widow/widower and orphans

Duration: Until remarriage (spouse) or until age 21 (children) or for life if disabled

Legal: Section 22B of EOBI Act

Invalidity Pension

Eligibility: Permanent incapacity to earn more than 1/3 of normal earnings

Requirement: At least 15 years of insurable employment

Legal: Section 2(k) read with Section 22 of EOBI Act

Old-Age Grant

Eligibility: Reaching age 60 (men) or 55 (women) but with less than 15 years of insurable employment

Amount: One-time lump sum payment based on contributions

Legal: Section 22A of EOBI Act

Registration Process for Employers
Step-by-Step Registration Process:

Download or obtain the prescribed registration form from:

  • Nearest EOBI Regional Office
  • EOBI Head Office, Islamabad
  • Official website (if available)

Submit the following documents with your application:

  • Completed registration form
  • SECP Certificate of Incorporation
  • NTN Certificate
  • Employer/Employee details on prescribed form
  • List of employees with CNIC numbers and dates of joining
  • Bank account details for contribution payments

Submit the complete application along with supporting documents to the nearest EOBI Regional Office or the Head Office in Islamabad.

Upon successful registration, the employer will receive a Registration Certificate and a unique EOBI Registration Number.

Time Limit: Every employer must register within 30 days from the date the Act becomes applicable to their establishment. Late registration may attract penalties and recovery of contributions with increase/interest.
Compliance & Penalties
Employer Obligations:
  1. Timely Registration: Register within 30 days of Act becoming applicable
  2. Monthly Contributions: Pay 6% employer share (Federal EOBI) + 1% employee share by the due date
  3. Employee Information: Maintain accurate records of all insured persons
  4. Submission of Returns: File prescribed returns as required by regulations
  5. Record Retention: Maintain contribution records and employee data
  6. Cooperation: Allow EOBI officials to inspect books and records
Penalties for Non-Compliance:
ViolationPenaltyLegal Reference
Failure to register establishment Recovery of contributions as arrears of land revenue + increase/interest Section 11 read with Section 13
Non-payment or short payment of contributions Increase on unpaid contribution at prescribed rate; recovery as land revenue arrears Section 13
Deduction of employer's share from employee wages Prohibited by law; employer must bear entire 6% share Section 9(3)
Failure to maintain records/returns Assessment based on EOBI's determination; estimated contributions Section 12(3)
Obstruction of EOBI officials Penalty as prescribed under general penal provisions Chapter VIII (Sections 37-38)
Key Point: The employer cannot deduct the employer's 6% share from employee wages. Section 9(3) explicitly prohibits this. Only the employee's 1% share can be deducted from wages. Violation can result in penalties and legal action.
Contact Information
Head Office
EOBI Head Office
House No. 4, Street No. 5
Sector F-7/1, Islamabad
+92-51-9262271-3
info@eobi.gov.pk
Regional Offices

EOBI has regional offices in:

  • Karachi (Sindh Region)
  • Lahore (Punjab Region)
  • Peshawar (KPK Region)
  • Quetta (Balochistan Region)
  • Islamabad (Federal Region)
Official Resources:
On This Page
Complete Labor Guide: See the Labor & HR Complete Guide for minimum wage, EOBI, and social security compliance.
EOBI Compliance
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Source Citations (1)
EOBI Act 1976
https://eobi.gov.pk/rules/eobilaw.html
pk_only 1976 law
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