ISLAMABAD, Pakistan: In a significant relief for pensioners across the country, the federal cabinet has approved a 15% increase in Employees’ Old-Age Benefits Institution (EOBI) pensions, raising the minimum monthly pension from Rs 10,000 to Rs 11,500. The revised pension will take effect retroactively from January 1, 2025, with arrears scheduled for disbursement starting September 1, 2025.
According to official estimates, nearly half a million retirees will benefit from this much-needed financial boost. Under the revised structure, retirees with longer contribution periods could now receive over Rs 30,000 per month, providing a significant cushion against rising living costs. The government has earmarked approximately Rs 10 billion each month to fund the upgraded pension payments.
Beyond the immediate raise, a new cabinet committee has been formed to devise strategies for expanding EOBI’s coverage. The committee will focus on including informal sector workers, domestic helpers, and agricultural laborers to ensure that more segments of the workforce receive pension and social security benefits.
Officials highlighted that the decision aligns with the government’s ongoing efforts to strengthen social welfare and economic stability for the country’s retired workforce. However, experts caution that structural reforms are critical to ensure EOBI’s financial sustainability beyond 2035, as existing reserves continue to face pressure from the expanding beneficiary base.
This increase, coupled with the payment of arrears, offers much-needed respite for pensioners grappling with inflation. Stakeholders now look forward to the committee’s recommendations on how to strengthen EOBI and secure its future in Pakistan’s rapidly evolving economic landscape.
This story has been reported by PakTribune. All rights reserved.