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Tag: pension

  • 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…)