Pakistan EOBI Pension & Gratuity Calculator

About the Pakistan EOBI Pension & Gratuity Calculator

The Employees’ Old-Age Benefits Institution (EOBI) runs Pakistan’s old-age pension for people in private industrial and commercial jobs. The employer pays 5% and the worker 1% of the minimum wage each month — not of the actual pay — and after 15 years of contributions the worker gets a monthly pension from 60 (55 for a woman), never less than Rs 11,500. This calculator works out both shares for one worker and for the whole staff, the pension or the old-age grant, and the reduced pension for an early retirement.

It also works out the gratuity due when the job ends: one month’s wages for every year of service, and for a part year of more than six months, under Standing Order 16(6) of the Sindh Terms of Employment (Standing Orders) Act, 2015, or a days-per-year rule you enter for another province or a contract. Nothing you type leaves your browser.

Without a pass, the free preview shows the gratuity due in full, with the first step of its working and the first rows of the EOBI table; a Pro pass unlocks every figure, the EOBI pension or grant, the summary to copy and the CSV.

Common uses

• Check the EOBI amount on a payslip or an employer’s contribution voucher.
• Budget an employer’s EOBI cost for the whole staff for the year.
• Estimate the EOBI pension or grant before claiming it, or what continuing to contribute until 60 would give.
• Work out the gratuity due when you resign or your job ends, before the final settlement.

EOBI contributions: 5% and 1% of the minimum wage

EOBI’s own contribution page sets the employer’s share at 5% and the worker’s at 1% of the worker’s minimum wages — 6% a month in all — and the Act defines the wages for contributions as the rates declared under the Minimum Wages for Unskilled Workers Ordinance, 1969. So two workers on very different pay cost the same in EOBI contributions. The employer may not deduct its own share from the worker’s pay.

The Act covers every industrial or commercial establishment with five or more employees, and a smaller one may join voluntarily. No contribution is payable for a worker who is 60 or over (55 for a woman) or who already receives an old-age pension. The Act does not apply to people in the service of the State (including the armed forces, police and railways), local councils and other local authorities, WAPDA, some statutory bodies, or members of the employer’s family who live in the employer’s house.

The old-age pension

A worker gets an old-age pension from 60 (55 for a woman) once contributions have been paid for at least 15 years; a mine worker with ten years in mining just before retiring reaches the pension age five years earlier. The monthly pension is average monthly wages × years of insurable employment ÷ 50, where six months or more count as a full year and the average is of the wages contributions were paid on in the twelve months before the pension starts. EOBI pays at least Rs 11,500 a month.

Where an employer has an established retirement age below 60 (55 for a woman), a worker it retires from 55 (50 for a woman) can take a reduced pension: 0.5% less for each completed month short of the pension age, for life. The pension starts from the month after the worker qualifies and is paid back for no more than six months before the claim, so claim on time.

The old-age grant

A worker who retires after 60 (55 for a woman or a mine worker) with at least two but fewer than fifteen years of contributions gets an old-age grant instead of a pension: one month’s average wages for every completed year of insurable employment, and for a part year of more than six months, paid once. Contributions stop at 60 (55 for a woman), so years after that age do not add to it.

On a death in service EOBI pays no old-age benefit: after at least three years of insurable employment the surviving spouse gets a survivors’ pension for life, then the minor children (section 22B). The calculator explains it but does not work it out.

Gratuity under the Sindh Standing Orders

In Sindh, Standing Order 16(6) gives a worker who resigns, or whose service the employer ends for any reason other than misconduct, a gratuity of one month’s wages for every completed year of service or part of one above six months — the wages admissible to a fixed-rated worker, or the highest monthly pay of the last twelve months for a piece-rated one. A seasonal worker gets one month’s wages for each season. If the worker dies in service, the gratuity is deposited with the Commissioner, who pays it to the dependants (Standing Order 16(8)).

No gratuity is due for the years in which the employer ran a provident fund that the worker contributed to and the employer paid into at least as much; what the worker gets from that fund must not be less than the gratuity would have been. The Act covers industrial and commercial establishments with ten or more workers, but not those run by or under the Federal or Provincial Government where statutory service rules apply (Sindh Terms of Employment (Standing Orders) Act, 2015).

Other provinces, Islamabad and contracts

Outside Sindh, other standing orders laws apply, and many employers pay gratuity under a contract or a company scheme. Their rules can differ from Sindh’s, so the calculator does not apply Sindh’s rule to them: choose “Another rule”, enter the days’ wages per year your law or contract gives, and say whether a part year counts.

Limitations

• The minimum wage EOBI charges contributions on is not built in, because EOBI’s own pages do not state it: enter the wage on your EOBI contribution voucher or challan.
• The survivors’ pension and the invalidity pension are not worked out, and the projection assumes the same average wage until the pension age.
• Sindh has its own Sindh Employees’ Old-Age Benefits Act, 2014: check which scheme your establishment pays into. This calculator follows the EOBI scheme.
• The built-in gratuity rule is Sindh’s; for elsewhere, enter your own rule. A day’s wage is taken as a thirtieth of the monthly wage.
• An estimate — not legal advice. EOBI, your employer or a labour lawyer can confirm the figures.

Privacy

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