EOBI – Assisting life after Retirement

EOBI and its Assembly
The EOBI Registration
How much money will be added into your EOBI wallet?
Types of Pension?
How to receive EOBI Pension?
How to Verify your EOBI Status?

Life after retirement is sighted to be the second innings of your life. It should be considered as your chance to explore the world more. Retirement leaves you with some precious 45 hours of a week which you were serving at your job. This is the time to treat yourself for working so hard every day. Retirement should be a joyous event of your life but not the last. Unfortunately, it can be miserable for many of us. No one wishes to see oneself wander from door to door when retired. In Pakistan, EOBI serves the purpose to cater you in your life after retirement. In traditional Pakistani society, many of us save money for any particular period. But what happens if you put all eggs in one basket and can’t get hold of it? You will lose your eggs!

EOBI and its Assembly

Ministry of Overseas logo
EOBI regulates under the Ministry of Overseas Pakistani and Human Resource Development (courtesy Geo TV)

The Ministry of Overseas Pakistani and Human Resource Development is directed to look after the care of retired people. Enforced in April of 1976, Employees Old-Age Benefits Institution (EOBI) was formed in the light of Article 38 (C) of the Constitution of Pakistan. Meanwhile, it was designed to provide compulsory social insurance to its insured clients. 

According to the think tanks, the main idea behind the formation of the EOBI was the welfare of private employees. In Pakistan, government employees get a part of their salary after retirement as Pension. But there is no such concept for private employees. A group of private employees demanded the government the right of the welfare of them and their families. As a result, EOBI was established to meet the demands of the then private employees.

EOBI Registration

A happy EOBI insured worker
A happy EOBI insured worker

EOBI registration varies from industry to industry but can be availed by everyone. Regardless of the nature of work, any individual working in a private company consisting of more than 5 employees can register to EOBI. Some of the examples for EOBI registration are shared below. If you work in;

  • Workshop
  • Factory
  • Mill
  • Private School
  • Private organization
  • Shops
  • Charitable Organization
  • Departmental Stores
  • Security Companies

then you are eligible to register with EOBI. 

Note: The organization you work in, should possess at least 5 employees beside you. If you work under any shop owner, there should be a minimum of 5 employees working under that owner to be eligible for EOBI registration.

Case 1- Through Employer

This is a very important aspect people usually ask. Before moving forward we would like to clear one thing. EOBI is not an insurance. This means only the individuals who work in the private sector are eligible to add into EOBI wallet.

If your organization meets the 5-employee requirement, then it is your right to ask your employer for your EOBI registration. Following this, your employer will register you in the EOBI scheme.

How much money will be added into your EOBI wallet?

Once your employer gets you registered in the EOBI then a monthly deduction will be made. This deduction will be adjusted according to one’s salary. The formula to learn the deduction is as follow;

  • Amount equivalent to 5% from 13,000 of your salary will be contributed by the employer
  • Amount equivalent to 1% of your total salary will be contributed by the employee

This monthly deduction will be made by your employer every month. And the EOBI registered employer will be responsible to deposit this amount to the EOBI. The minimum wage is acknowledged as Rs. 13,000.

Case 2- Personally Registration

You can register yourself personally in EOBI
You can register yourself personally

In case of an employer not registering his employees, personal registration can be done. Individuals can personally visit the EOBI regional offices for registration. However, regional offices can easily be found in every major city of Pakistan.

Individuals who wish to register will have to visit regional offices every month. EOBI management will share the account details in which deposits should be made. The application form i.e. PE-02, provided by the EOBI, should be submitted after filling. Employee’s detailed information from your organization/employer mentioning your salary and years of service should be submitted.

Note: In case of change in the organization an individual work for, you have to inform EOBI authorities. Further processes will be adjusted by them. If one’s previous employer was depositing the contribution and the new one doesn’t, then the individual might have to personally deposit the contributions every month and vice versa.

Types of EOBI Pension?

EOBI registered employees can claim pensions in the following cases;

Old-Age Pension

To receive pension every month, the participants should be submitting money for at least 15 years during service. Male participants can retire at the age of 60 years from service. While female participants may retire at the age of 55 years.

Invalidity Pension

Unfortunately, if any participant faces any kind of disability during the service then he/she can claim the pension for disability. Any EOBI individual whose disability affects 2/3 of his/her body, he/she becomes eligible for pension until becoming healthy once again. And if he/she reaches 60 years of age without getting healthy, the pension will be converted into a lifetime pension.

Note: To be eligible, it is necessary for the individual to have contributed more than 5 years in the scheme.

Survivor’s Pension

Unfortunately, if any participant of the EOBI scheme passes away then his/her family will be awarded a lifetime pension. His/her family will have to prove the death of the participant as well as their relationship with the participant before claiming the pension.

Note: To be eligible, it is necessary for the an individual to have contributed more than 36 months in thescheme.

Old-Age Grant

In case an EOBI insured person reaches the age of retirement i.e. 60 years, he/she becomes eligible to get an Old-Age grant. This is an exemption for people not completing the minimum contribution year policy i.e. 15 years of contribution.

Note: To avail this grant, it is necessary for the an individual to have contributed more than 2 years in the scheme.

How to receive EOBI Pension?

EOBI takes care of you after retirement
EOBI takes care of you after retirement

To receive EOBI pension, following documents should be submitted at the nearest EOBI regional office:

  • Certified two recent passport size Photographs of the employee
  • Certified copy of National Identity Card (NIC)
  • Registration card of EOBI (PI-03)
  • Certificate from employer to confirm that the employee’s all contribution has been made regularly, meanwhile, he has not submitted any Claim form before
  • Record of salary for the last year, certified from employer
  • Certificate of employment from the employer

Once you have collected all these documents, submit them at the nearest regional or field office and receive the slip. Once the formalities are resolved EOBI card will be issued against the applicant within 30 days. With the help of a card, an applicant can receive his/her pension every month from any approved bank near him/her.

How to Verify your EOBI Status?

For EOBI verification and to check EOBI status online you have to follow the instructions below;

  • Visit www.eobi.gov.pk
  • Find and select ‘Individual Information’
  • Select ‘Insured Person/Employee Details’
  • Now you have three options to check EOBI status online 
  1. Check EOBI card status with CNIC (old or new number)
  2. Check EOBI card status with registration number
  • Enter any of the above details

With this process, all of your entered details will be shared on screen. Following our guide, you can easily learn your EOBI card status online as well as your contribution history.

Note: It should be noted that the minimum pension amount for the contributors is Rs. 8,500. Whereas, the maximum can be adjusted according to your contribution.

Today we shared with you all the registration process and the verification process of your EOBI scheme.

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