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  • Commission constituted to review salary, perks of government employees

    Commission constituted to review salary, perks of government employees

    ISLAMABAD: The federal government has constituted a pay and pension commission to review existing salary and perks.

    According to the finance ministry, the government of Pakistan had constituted a Pay and Pension Commission, with effect from 14-04-2020.

    The Composition of the Commission shall be as follows:

    Mr. Wajid Rana, Former Federal Secretary, Chairman.

    Mr. Nazar Hussain Mahar, Retired Civil Servant, Member.

    Dr. Noor Alam, Retired Civil Servant, Member.

    Ms. Seema Kamil, President, United Bank Limited, Karachi, Member.

    Mr. Zubyr Soomro, Chairman, Board of Directors, National Bank of Pakistan, Member.

    Ms. Nausheen Ahmed, Company Secretary, ICI (Pakistan) Limited, Member.

    MEMBERS EX-OFFICIO

    Secretary, Finance Division, Government of Pakistan, Member.

    Secretary, Establishment Division, Government of Pakistan, Member.

    Secretary, Defence Division, Government of Pakistan, Member.

    Secretary, Finance Department, Government of Punjab, Member.

    Secretary, Finance Department, Government of Khyber Pakhtunkhwa, Member.

    Secretary, Finance Department, Government of Sindh, Member.

    Secretary, Finance Department, Government of Balochistan, Member.

    Secretary, Finance Department, Government of AJ&K, Member.

    Secretary, Finance Department, Government of Gilgit Baltistan, Member.

    An Officer of BS-21 of the Auditor, General of Pakistan, Government of Pakistan, Member.

    An Officer of BS-21, Controller General of Accounts, Government of Pakistan, Member.

    Joint Secretary (Regulations), Finance Division, Government of Pakistan, Member/Secretary.

    The terms of Reference of the commission are as following.

    i) PAY & ALLOWANCES

    a) Study the adequacy of existing Basic Pay Scale System and to evaluate the current salaries of Government employees throughout the federation including the provincial government and recommend measures for its improvement and uniformity. Also make recommendations for the streamlining of existing classification from BPS 1-22.

    b) Study the separations of existing Basic Pay Scales for specialized departments/occupations/cadres.

    c) Review of Special Scales such as Management Grades, Management Position Scales (MP Scales), Special Professional Pay Scales (SPPS), Project Pay Scales etc. and propose measures for uniformity and improvement.

    d) Review of admissible Regular allowance, Special incentives and all other allowances with a view to highlight prevalent distortions and recommend corrective measures.

    e) Review of existing perks and facilities and make recommendations, including possibility of their monetization.

    1)  PENSION

    To Review the Pension system of the Government of Pakistan:

    A) Highlight existing distortions and anomalies in the Pension Scheme and recommend remedial measures. Verify the sustainability of the current model after critically evaluating future liabilities through an actuarial study.

    B) Evaluate alternate system of Pension like defined contribution and setting up of pension funds in light of international best practices and recommend a system with clear timelines that is more efficient and sustainable, considering the available recourses.

    iii) To Review the existing incentive regime (honorarium and special rewards) and recommend improvement in it.

    iv) To evaluate and recommend legislative measures to protect and streamline Pay, Pension and Allowances regime for government employees.

    v) The Commission may, if so desired by the Government, make interim recommendation to provide interim relief, pending the submission of its final report.

    vi) The Commission shall have power to co-opt any person or agency to assist it in its deliberations>

    vii) The Finance Division shall provide Secretariat support to the Commission and the Commission shall make its recommendations within 6 Months of its constitution. While formulating its proposal/recommendations on the above terms of reference, the pay and pension commission would take into consideration the financial recourses of the Government.

    The scope of work of the Commission will include Federal and Provincial civil servants, other government servants, civilians paid from defence estimates, all Armed Forces/Civil Armed Forces personnel and holders of the posts in Management Scales and employees of such Public sector corporations/autonomous/semi-autonomous bodies, other than Banks and DFIs, which have adopted the scheme of Basic Pay Scales in toto.

    Employees of Public Sector Corporations/Autonomous/Semi-Autonomous bodies who are regulated under the Pay Scales prescribed by these organizations and the employees governed under the Industrial Relations Ordinance, 1969 and/or whose financial terms of service are settled through Collective Bargaining Agents, are executed from the scope of work of the Pay & Pension Commission.

  • Pension granted total income tax exemption

    Pension granted total income tax exemption

    ISLAMABAD: Pensioners are allowed total exemption from tax on income received as pension.

    Officials in Federal Board of Revenue (FBR) on Monday said that pensioners are allowed complete exemption from income tax under Income Tax Ordinance, 2001.

    They said that any pension received by a citizen of Pakistan from a former employer will be exempted from income tax, other than where the person continues to work for the employer (or an associate of the employer).

    Provided that where the person receives more than one such pension, the exemption applies only to the higher of the pensions received.

    The exemption from income tax also available on any pension –

    (i) received in respect of services rendered by a member of the Armed Forces of Pakistan or Federal Government or a Provincial Government;

    (ii) granted under the relevant rules to the families and dependents of public servants or members of the Armed Forces of Pakistan who die during service.

    Any payment in the nature of commutation of pension received from Government or under any pension scheme approved by the FBR for the purpose of this clause is also exempted.

    Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement or, in the event of his death, by his heirs as does not exceed –

    (i) in the case of an employee of the Government, a Local Government, a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of the employee’s services;

    (ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules in Part III of the Sixth Schedule;

    (iii) in the case of any other employee, the amount not exceeding three hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the Board for the purposes of this sub-clause; and

    (iv) in the case of any employee to whom sub-clause (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less:

    Provided that nothing in this sub-clause shall apply –

    (a) to any payment which is not received in Pakistan;

    (b) to any payment received from a company by a director of such company who is not a regular employee of such company;

    (c) to any payment received by an employee who is not a resident individual; and to any gratuity received by an employee who has already received any gratuity from the same or any other employer.

  • EOBI pension increased by 30 percent from January 01

    EOBI pension increased by 30 percent from January 01

    ISLAMABAD: The government has decided to increase pension amount by 30 percent from January 01, 2019, special assistant to prime minister said on Thursday.

    “New year is heralding big news for the pensioners of Employees’ Old-Age Benefits Institution (EOBI) as the government has decided to raise their annuity by 30 per cent from January 1,2020,” Special Assistant to the Prime Minister on Overseas Pakistanis and Human Resource Development Sayed Zulfikar Abbas Bukhari said while addressing Ciniplex and Commercial Complex’ inaguration ceremony on Thursday.

    He said that after increase in the EOBI pensioners would receive Rs 8,500 per month from January, 1 next year.

    He said the ministry would move the summary regarding the increase at the next meeting of federal cabinet for a final approval.

    The SAPM said the PTI government, in its efforts to give more relief to the pensioners, had twice increased their annuity in just one and half year’s tenure.

    He said the government had already enhanced the minimum pension of the EOBI’s insured person from Rs 5,250 to Rs 6,500 during 2018.

    The EOBI pension has been enhanced by 62 per cent since the Pakistan Tehreek-e-Insaf government came into power.

    “We are intending to raise this amount up to Rs 15,000 by the end of our tenure (2023),” Zulfikar Bukhari said.

  • SBP enhances limit to $5,000 for pension transactions under home remittance services

    SBP enhances limit to $5,000 for pension transactions under home remittance services

    KARACHI: State Bank of Pakistan (SBP) on Monday enhanced the limit of pension transactions up to $5,000 per month under home remittance services.

    According to a circular issued by the SBP the transactions limits by individuals under various categories had been enhanced to $5,000 per month from $1,500 per month.

    The limits have been enhanced to facilitate overseas Pakistanis.

    The central bank on October 22, 2018 allowed banks and exchange companies to effect Business to Customer (B2C) and Customer to Business (C2B) transactions through foreign correspondent entities under their existing/new home remittance agency arrangements subject to inclusion of respective ceilings along with terms and conditions.

    The limits defined under circular issued on October 11, 2019 were $1,500 for: freelance of computer and information system services; other freelance services; and pension transactions.

    In the latest circular, the SBP said that ll other instructions on the subject shall remain unchanged.

    The SBP said that before finalization, exchange companies are required to forward draft of all addendum/new agency agreements.

    The SBP will provide its input, if any, on the draft addendum/new agreement but the ultimate responsibility to adequately safeguard their interest would remain on the exchange companies.

    Furthermore, the AD’s failure to comply with the above mentioned instructions may attract regulatory penalty under Section 23K of the Foreign Exchange Regulation Act, 1947.

  • EOBI pension to increase Rs15,000 per month

    EOBI pension to increase Rs15,000 per month

    KARACHI: The government is aiming to increase the pension amount to Rs15,000 per month from existing Rs6,500 in order to provide relief to elder pensioners and their survivors, a statement said on Sunday.

    Addressing at the first ever Annual Pension Day organized by Employees Old-Age Benefits Institution (EOBI) has organized, Syed Zulfiqar Abbas Bukhari, Special Assistant to Prime Minister for Ministry of Overseas Pakistanis and Human Resource Development, as the chief guest of the ceremony said that currently, the minimum EOBI Pension is Rs6,500 per month but “I am determined to increase the amount to Rs. 15,000 pm, during the term of our government so that the elder pensioners and their survivors would get a little breather.”

    Bukhari said that in September 2018, he had announced 23 percent increase in Pension due to which the Pension was increased to Rs 6,500.

    “However, still it is a nominal amount and needs to be increased. We will make the EOBI a viable and profitable Institution and protect the rights of pensioners,” he said.

    Bukhari further said that more than Rs20 billion have been collected as EOBI Contribution from registered Employers across the country and disbursed 33 billion among the Pensioners.

    “It is not possible to deny the importance of Social Protection for the elderly, disabled employees and widows of the mother land,” he added.

    Earlier, Secretary OP&HRD Engr. Aamir Hassan has welcomed the Chief Guest and briefed the objective of celebration of 1st Annual Pension Day by EOBI.

    On this occasion, Chairman EOBI, Azhar Hameed also expressed his views and highlighted the EOBI services and performance towards registered Employers, Insured persons and Pensioners.

    He said that we are transforming EOBI into a state-of-the-art Institution. We have already started some important projects to achieve our goals.

    One of them is EOBI Transformation Initiative (ETI). Our vision for the future is on being the “Best Technology Driven Service-Oriented Institution” in the country to enable Pension disbursement on timely, prompt and Service basis with the utmost convenience for the contributors. We have also focused on social media and created our twitter handle @EOBIPakistan.

    EOBI Board of Trustees member from KPK Dr. Muhammad Yousuf Sarwar (Employer’s representative) & Muhammad Iqbal (Employees’ representative) also addressed the ceremony.

    Meanwhile, EOBI has selected 132 top and prominent Employers/Companies throughout Pakistan sector-wise i.e. Textile, Sugar, Cement, Coal Mining, IT, Security Companies, Education, Banking, Micro Finance Banking, Insurance, Pharmaceutical, Hospitals, Automobile, Engineering, Human Resource, Beverages, Hotel Industry, Food, Courier Services, Telecommunication, Tobacco, Construction, Media and Power Sector on the basis of highest paid EOBI Contribution on current rate for their employees.

    The chief guest awarded Gold Medals, shields and Appreciation certificates among the following top and prominent Employers/Companies of the country, which included:

    1. PTCL, Islamabad (Total contribution paid Rs. 1,936,432,580, Total pensioners 1,303 and Total pensioner disbursed Rs. 216,822,225)

    2. K-Electric, Karachi (Total contribution paid Rs. 1,343,087,088, Total pensioners 9,546 and Total pensioner disbursed Rs. 3,057,430,302)

    3. HRSG Outsourcing Pvt. Ltd., Karachi (Total contribution paid Rs. 1,282,679,010, Total pensioners 247 and Total pensioner disbursed Rs. 50,942,812)

    4. Oil & Gas Development Company Ltd., Islamabad (Total contribution paid Rs. 1,020,352,522, Total pensioners 4,147 and Total pensioner disbursed Rs. 1,096,759,647)

    5. Sui Northern Gas Pipeline Ltd., Lahore (Total contribution paid Rs. 874,902,306, Total pensioners 3,698 and Total pensioner disbursed Rs. 1,190,798,741)

    6. The Aga Khan Hospital Medical College Foundation, Karachi (Total contribution paid Rs. 851,357,226, Total pensioners 813 and Total pensioner disbursed Rs. 223,709,796)

    7. Utility Stores Corp Ltd., Islamabad (Total contribution paid Rs. 742,159,088, Total pensioners 1,048 and Total pensioner disbursed Rs. 293,062,537)

    8. The Citizen Foundation, Karachi (Total contribution paid Rs. 726,093,214, Total pensioners 313 and Total pensioner disbursed Rs. 58,324,928)

    9. Interloop Ltd., Faisalabad (Total contribution paid Rs. 698,254,092, Total pensioners 213 and Total pensioner disbursed Rs. 51,143,537)

    10. Educational Services Pvt. Ltd. Lahore¬ (Total contribution paid Rs. 662,192,355, Total pensioners 916 and Total pensioner disbursed Rs. 295,556,050)

    The following prominent Employers/ Companies were also honored with Shields and Appreciation certificates for their valuable EOBI Contribution towards their employee’s welfare.

    • Islamabad Hotel,
    • Abbott Laboratories Pakistan Limited,
    • Adamjee Insurance Company Limited,
    • The Aga Khan Hospital Medical College Foundation,
    • Airport Hotel (The Inn),
    • Al-Abbas Sugar Mills Limited,
    • Al-Karam Textile Mills Pvt. Ltd.,
    • ANC Foods, Ashraf, Sugar Mills,
    • Askari Cement Ltd.,
    • Askari Guards (Pvt.) Ltd.,
    • Attock Refinery Limited,
    • B.L. Harbert International Pvt. Ltd.,
    • Bahria Town Pvt. Ltd.,
    • Bata Pakistan Ltd.,
    • Bosch Pharmaceutical Pvt. Ltd.,
    • Byco Petroleum Pakistan Limited,
    • Chenab Management Liaison,
    • The Citizen Foundation,
    • The City Schools Pvt. Ltd.,
    • Coca Cola Beverages Pakistan Ltd.,
    • Credit Commerce Consultants Pvt. Ltd.,
    • D.G. Khan Cement Co. Ltd.,
    • Daily Business Recorder,
    • Daily Jang Rawalpindi,
    • Design Engg. Services Construction Ltd.,
    • Dr. Ziauddin Hospital.,
    • E F U General Insurance Ltd.,
    • Educational Excellence Ltd.,
    • Educational Services (Pvt.) Ltd.,
    • Educational Services (Pvt.) Ltd. (Regional Office),
    • EFU Life Assurance Ltd.,
    • ENI Pakistan Limited,
    • Express Publications Pvt. Ltd.,
    • Fauji Cement Company Limited,
    • Fauji Security Services,
    • Finca Microfinance Bank Ltd.,
    • Fouji Foundation Hospital,
    • Gul Ahmed Textile Mills Ltd.,
    • Hafiz Tannery, Hamza Sugar Mills Ltd.,
    • Hascol Petrolum Limited,
    • Heavy Mechanical Complex Limited,
    • Hillcrest Solutions Pvt. Ltd.,
    • Hinopak Motors Ltd.,
    • HRSG Outsourcing Private Ltd.,
    • Hub Pak Salt Refinery,
    • i2c Pakistan,
    • Independent Media Corporation (Pvt.) Ltd. (Geo),
    • Information Technology Services, Interloop Limited,
    • Islamabad Marriott Hotel,
    • Izhar Construction Ltd.,
    • Jaag Broadcasting Systems (Pvt.) Ltd.,
    • JDW Sugar Mills Limited,
    • Jubilee Life Insurance Company Limited,
    • K- Electric,
    • Karachi Shipyard & Engineering Works Ltd.,
    • Katha Collieries Pak. Ltd.,
    • Khyber-Pakhtunkhwa Oil & Gas Company,
    • Khyber Tobacco Company Limited,
    • Lahore Grammar School,
    • Leather Field (Pvt.) Limited,
    • Leopard Courier Service,
    • Lucky Cement Limited,
    • M A Food Industries Pvt. Ltd.,
    • M Fazal Haq & Co. Ltd.,
    • H. Sadar Ali Akhtar Ali Pvt., Ltd.,
    • Super Coal Mines,
    • Maple Leaf Cement Factory Ltd.,
    • Masood Textile Mills Ltd.,
    • MCC Resources Development Co (Pvt.) Ltd.,
    • Meezan Bank Limited,
    • Memon Motor Private Limited,
    • Mezan Beverages Pvt.,
    • Limited, Muller &Phipps Pakistan Ltd.,
    • Mushtaq Ali Khan Contractor,
    • Muslim Contractor Company (Pvt.) Ltd.,
    • National Communication Services,
    • National Engineering Services Pvt. Ltd.,
    • National Insurance Corporation Ltd.,
    • National Radio Telecommunication Corp.,
    • National Refinery Ltd.,
    • Nextbridge Private Ltd.,
    • Nishat Mills Ltd.,
    • NRSP Microfinance Bank Limited,
    • Oil & Gas Development Company Ltd.,
    • Orient Petroleum Pty Limited,
    • Pak Arab Refinery Ltd.,
    • Pak Elektron Ltd.,
    • Pak Suzuki Motor Company Limited,
    • Pakistan Herald Publications Ltd.,
    • Pakistan Mineral Development Corp,
    • Pakistan Petroleum Limited,
    • Pakistan Refinery Ltd.,
    • Pakistan State Oil Company Limited,
    • Pakistan Telecommunication Co Ltd.,
    • Pakistan Television Corporation Limited,
    • Pakistan Tobacco Company Limited Karachi,
    • Pearl Continental Hotel,
    • Philip Morris (Pakistan) Ltd.,
    • Phoenix Armour Pvt.,
    • Limited, Phoenix Security Service Pvt. Ltd.,
    • People’s Primary Healthcare Initiative (PPHI Sindh),
    • Professional Employers Private Limited,
    • Punjab Beverages Co. (Pvt.,) Ltd.,
    • Quality Contracto,
    • Ravi Auto Sundar Pvt. Ltd.,
    • S S Foot Marks Pvt.,
    • Limited, Sami Pharmaceuticals Ltd.,
    • Searle (Pakistan) Limited,
    • Serena Hotel,
    • Shaukat Khanum Memorial Cancer Hospital,
    • Shell Pakistan Ltd.,
    • Skills Hub Private Limited,
    • Souvenir Tobacco Company Limited,
    • Style Textile (Pvt.) Ltd.,
    • Sui Northern Gas Pipelines Ltd.,
    • Systems Limited,
    • TCS Courier Co.,
    • Tameer Micro Finance Bank Limited,
    • Tandlianwala Sugar Mills Ltd.,
    • Tech Access Pakistan Pvt. Ltd.,
    • The Aga Khan Shia Ismailia Education Society,
    • The Indus Hospital,
    • The News International Lahore,
    • Total Parco Marketing Limited,
    • Microfinance Bank Limited,
    • United Energy Pakistan Limited,
    • United Refrigeration Industries Ltd.,
    • Utility Stores Corp Ltd.,
    • ZIMS Security Pvt. Ltd.

    The Chief Guest Zulfiqar Abbas Bukhari also awarded EOBI Pension Books & souvenirs to the following EOBI Pensioners.

    • Ch. Ameer Khan (PTCL),
    • Tanveer Kaukab (Islamabad Serena Hotel),
    • Saleem Raza Shah (Hotel Holiday Inn),
    • Mst. Nomita Ali Tarar (Pensioner’s widow),
    • Khursheed Begum Arain (Pensioner’s widow),
    • Shahid Hameed (PTC),
    • Maqbool-ur-Rehman Khan (SNGPL),
    • Abdul Rasheed (OPF Girls College),
    • Mst. Ghulam Kubra (OGDCL),
    • Javed Masih (Total Service Centre).

    Th 1st Annual Pension Day program was organized by Aqeel Ahmad Siddiqui, Director General (Operations) EOBI and his team comprising Sr. officials of Sindh & Baluchistan, Punjab & Islamabad, KPK & Gilgit Baltistan’s Benefits & Contribution Departments and 39 Regional Offices throughout Pakistan.

  • Budget 2019/2020: salary, pension increased up to 10 percent

    Budget 2019/2020: salary, pension increased up to 10 percent

    ISLAMABAD: The government has announced increase up to 10 percent in salary and pension in the federal budget 2019/2020.

    Hammad Azhar, State Minister for Revenue presented Budget 2019/2020 on Tuesday and announced following relief measures for government employees and pensioners.

    Ad-hoc Relief Allowance at 10 percent on running Basic Pay of BPS 2017 to civil government employees in BPS grade 1 to 16, and employees of Armed Forces Civil employees BPS 17 – 20 will be given ad-hoc Relief Allowance at 5 percent.

    Civil employees in BPS 21 and 22 will receive no increase in pay as they have decided to sacrifice for the sake of improvement in economic situation of the country.

    Increase in net pension at 10 percent will be given to all civil and armed forces pensioners of federal government.

    Special conveyance allowance for disabled employees will be enhanced from Rs.1,000 per month to Rs.2,000 per month.

    Special pay admissible to SPS/PS/APS to Ministers, Ministers of State, Parliamentary Secretaries, Additional Secretaries, and Joint Secretaries will be enhanced by 25 percent.

    In addition to the above, minimum wage is being increased to Rs.17,500 per month.

  • EOBI disburses Rs35 billion to pensioners in current fiscal year

    EOBI disburses Rs35 billion to pensioners in current fiscal year

    KARACHI: Employees Old-Age Benefits Institution (EOBI) has disbursed Rs35 billion to pensioners during the current fiscal year.

    “The disbursement will increase to Rs46 billion during the next fiscal year,” Azhar Hameed, Chairman, EOBI, said on Monday while addressing members of Korangi Association of Trade and Industry (KATI).

    President KATI Danish Khan, Senior Vice President Faraz-ur-Rehman, Head of KATI’s Standing committee on EOBI and SESSI Zahid Saeed, Zubair Chaya, Johar Qandhari and others welcomed the chairman at KATI.

    The EOBI chairman said that the institution was planning to celebrate pension day to spread awareness among the employers and to honor the dedicated contributors.

    He also assured that audit should be confined to once a year and he would not allow making this a tool of harassment in the hands of officials.

    President KATI Danish Khan said that after 18th amendment there is a lot of confusion regarding the role of EOBI and ongoing litigations in the courts also cause uncertainty.

    He said that employers are ready to provide every possible facility and contribution for the welfare of the workers.

    Zahid Saeed said that there is need to give awareness to the employers regarding the role and importance of the institution.

    He also suggested establishing a special desk in industrial areas of Karachi.

    Zubair Chhaya said that due to incompetence of worker’s social welfare departments EOBI also suffers the credibility.

    While responding to issues raised by participants Azhar Hameed asked KATI to nominate a focal person to work with the institution and resolve urgent matters.

  • Income Tax Ordinance 2001: total exemption on payment of pension, retirement

    Income Tax Ordinance 2001: total exemption on payment of pension, retirement

    KARACHI: Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement is exempted from income tax.

    The Second Schedule of Income Tax Ordinance, 2001 explained the exemption from total income.

    Any income representing any payment received by way of gratuity or commutation of pension by an employee on his retirement or, in the event of his death, by his heirs as does not exceed –

    (i) in the case of an employee of the Government, a Local Government, a statutory body or corporation established by any law for the time being in force, the amount receivable in accordance with the rules and conditions of the employee’s services;

    (ii) any amount receivable from any gratuity fund approved by the Commissioner in accordance with the rules in Part III of the Sixth Schedule;

    (iii) in the case of any other employee, the amount not exceeding three hundred thousand rupees receivable under any scheme applicable to all employees of the employer and approved by the Board for the purposes of this sub-clause; and

    (iv) in the case of any employee to whom sub-clause (i), (ii) and (iii) do not apply, fifty per cent of the amount receivable or seventy-five thousand rupees, whichever is the less:

    Provided that nothing in this sub-clause shall apply –

    (a) to any payment which is not received in Pakistan;

    (b) to any payment received from a company by a director of such company who is not a regular employee of such company;

    (c) to any payment received by an employee who is not a resident individual; and to any gratuity received by an employee who has already received any gratuity from the same or any other employer.

  • Rise in rate by 20pc benefits 388,684 pensioners

    Rise in rate by 20pc benefits 388,684 pensioners

    KARACHI: The recent increase of 20 percent is benefiting about 388,684 pensioners of Employees Old-Age Benefit Institution (EOBI), said a statement on Monday.

    The present government has honored its commitment of EOBI pension. Therefore, EOB Pension rate is now increased by 20 percent effective from September, 2018.

    The total increase of Rs5 billion is shared by EOBI and the government which has paid its share of Rs2.4 billion to EOBI.
    A total of 388,684 pensioners are benefited from this increase. The minimum pension now stands at Rs6,500/- whereas maximum pension is now Rs13,416 per month.

    In order to keep the institution financially viable and to sustain the increase in EOBI pension rates the EOBI has requested to Employers Community to fulfill their legal and moral obligations for the coverage of their employees to pay EOBI contribution under current minimum wage of Rs.15,000/- i.e. an employer share of Rs.750/- per employee per month and an employee share of Rs.150/- per month.

    The higher wages would result in higher Pension for registered employees.

    As part of its responsibility in ease of Doing Business sprint-IV, EOBI with the co-operation of Board of Investment (BoI), Statement Bank of Pakistan and SECP has taken the initiative of On-line payment facility for its Contributors. Regd. Employers can generate payment vouchers and pay EOB Contribution by using internet banking from their offices without visiting bank branches.

    For the facilitation of EOBI pensioners, EOBI has introduced Pension payments through ATMs since October 2016, Pensioners can draw their Pensions from any ATM without incurring “switch fee”. To ensure genuine payments, Pensioners are required to provide bi-annual proof of life through biometric verification.

    EOBI is a pioneer Institution of the country which provides Pension through ATM Card.

  • Cabinet approves 20pc increase for EOBI pensioners

    Cabinet approves 20pc increase for EOBI pensioners

    In a significant move, the federal cabinet has approved a landmark 20% increase in pensions for over 450,000 pensioners of the Employees Old-Age Benefits Institution (EOBI).

    (more…)