Government of Pakistan in 1976 established an EOBI pension institute to look after the welfare of retired employees. EOBI stands for Employee Old-Age Benefit Institution. EOBI plays an important role in providing the pension schemes to employees after their retirement. So that employees can live a better life after retirement. EOBI ensures the social security coverage for employees in different sectors. EOBI is governmental institute works under Ministry of Overseas Pakistanis and Human Resource Development.
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Purpose and Objective of EOBI Pension
The primary purpose of EOBI is to provide the financial assistance to employees after their retirement. Its aim is to reduce the dependency of elderly on others by offering them a monthly pension.
Types of EOBI Pension
EOBI offers following benefits to retired employees as per their category.
Old Age Pension
This pension is given to after the age of 60 years in case of male and 55 years in case of female. Eligibility for old age pension is that employee must pay contribution for at least 15 years.
The rate of Old Age Pension is specified in schedule that is:
Minimum Pension = Rs.10,000/-
Maximum = As per formula
(Average Minimum Monthly Wages) X (No. of years of Insurable Employment) / 50
Old-Age Grant
If an insured person reached the age limit which is 60 years for male and 55 years for female but he paid the contribution for less than 15 years but more than 2 years then he will fall under the category of Old-Age Grant.
Old-Age grant will be paid to eligible employee in lump sum equal to his one month’s average monthly wages for every completed year of insurable employment or part thereof in excess of six months.
Survivor Pension
If an insured employee dies in insurable employment after he had completed at least thirty-six months insurable employment then his surviving spouse shall be entitled to a life pension.
Insured person passes away while not engaged in insurable employment but has completed at least five years of insurable employment, the surviving spouse, if any, will receive a life pension equal to the minimum pension amount.
If an insured person who had qualified for an old-age pension or an invalidity pension before his death, the surviving spouse will receive a life pension equal to the pension amount the deceased was entitled to, provided that the spouse had married the deceased before he reached the minimum age required for the old-age pension that is 60 years.
Invalidity Pension
An employee covered by insurance who experiences disability is eligible for an invalidity pension, given that he has been insured under this EOBI Act and contributions have been made for him for at least five years since he started insurable employment, with at least three years of contributions within the five years before the onset of his disability. Irrespective of his age that is 60 years for male and 55 years for female.
To assess the decree of invalidity sustained by insured person, EOBI will appoint the medical board.
Estate Pension
If the surviving spouse of the deceased receives a survivor pension, the pension will be equally distributed among the minor children (boys up to the age of 18). For a female child, the pension will continue until she reaches eighteen years of age or until she gets married, whichever comes first.
If the deceased pensioner doesn’t have a surviving spouse or children, the pension will be paid to the parents for a duration of 5 years.
EOBI Contribution
Employers are required to make monthly EOBI contributions to the institution for each employee they hire and who is eligible for insurance. This contribution is set at six percent of the minimum wage specified by the Federal Government. From this total 6%, 5% is contributed by the employer, while 1% is deducted from the employees’ salaries.
EOBI Registration
Every organization having 10 or more than 10 employees are required by the law to register with EOBI. Organization can register with EOBI through online process. If you want to register your organization with EOBI follow or step by step guide for EOBI registration.
How to Claim EOBI Pension?
If you are an insured employee and want to claim your pension then follow below mentioned steps. EOBI digitalized its record to improve the efficiency and easy processing of pension claims.
- Go to EOBI official website
- Scroll down and click on “Personal Information”
- Now click on Employee Details, and enter your EOBI no. or CNIC no. and click search button.
- Once you find your record online, submit your documents to make a claim.
- Sent your required documents to your regional EOBI office.
- After the record and documents verification by EOBI, you will be issued a Pension Claim Form.
- Fill the Pension Claim Form and submit to your regional EOBI office.
- EOBI will process your request and issue a Pension Book/Pension Card within 30 days.
- Then you can claim your EOBI pension through designated bank (Bank Alfalah EOBI Pension Card) branches or NADRA outlets.
Required Documents for Pension Claim
If you want to claim the pension of alive insured employee, ensure you have these documents with you.
- EOBI Registration Card
- Proof of Employment/ Employment Certificate
- Copy of CNIC
If surviving relative of deceased insured employee is claiming the EOBI pension, following documents are required.
- EOBI Registration Card
- Certificate of Employment
- Copy of CNIC
- Nikah Nam of widow/widower
- NADRA death certificate
- NADRA issued FRC – for proof of relationship with deceased employee
Check Pension Claim Status
If you have applied for EOBI and want to check the status of your submitted application follow these steps.
- Go to EOBI official website
- Click on “Personal Information”
- Now click on “Pension Claim Status”
- Enter your “Claim Form No.” or CNIC no. and click on search button.
- Status of your application will be displayed.
Conclusion
In final words, EOBI pension ensures the financial security and welfare of retired employees. EOBI pension provides peace of mind to retired employees, survivors, and employees with disabilities. By understanding the above detailed article on eligibility, benefits and pension claim process, you can secure your future and ensure comfortable retirement.