EOBI stands for the Employees’ Old-Age Benefits Institution. It is a social security institution in Pakistan that provides financial and other benefits to employees in the public and private sectors upon their retirement, disability, or death.
Here are some key points to understand about EOBI:
Coverage:
- EOBI covers employees who are 60 years old or above and have completed at least 15 years of employment in the industrial, commercial, or other organizations registered with EOBI. It includes employees in both the public and private sectors, excluding the armed forces personnel.
Contributions:
- Employers and employees make monthly contributions to EOBI. The current contribution rate is 5% of the minimum wages specified by the government. The employer is responsible for deducting the employee's contribution from their salary and submitting it to EOBI along with the employer's contribution.
Benefits:
- EOBI provides various benefits to eligible employees, including old-age pension, invalidity pension, survivor's pension, and grant on the death of an insured person. The amount of the benefit depends on the employee's length of service and the contributions made.
Registration:
- Employers are required to register with EOBI and provide employee information, including names, ages, salaries, and other relevant details. This allows EOBI to maintain records and calculate the contributions and benefits accurately.
Administration:
- EOBI is administered by a Board of Trustees, headed by the Federal Minister for Overseas Pakistanis and Human Resource Development. The institution has regional offices across Pakistan to facilitate the registration process, resolve employee grievances, and provide information about the benefits.
Compliance and Reporting:
- Employers are responsible for complying with EOBI regulations, including deducting and remitting the monthly contributions on time, maintaining accurate records, and submitting required reports to EOBI as per the prescribed format.
