The federal cabinet on Saturday gave the go-ahead for another 15% increase in pensions under the Employees’ Old-Age Benefits Institution (EOBI), bringing relief to nearly half a million retired workers.
This latest hike comes on top of a 15% raise approved by the cabinet in July, which was due to take effect from January 1, 2025. Earlier this week, the EOBI had assured the National Assembly’s Standing Committee on Overseas Pakistanis and Human Resource Development that pensions — including arrears — would be disbursed from September 1. At that time, the institution confirmed that the minimum pension would rise from Rs10,000 to Rs11,500 effective January 2025.
Following Saturday’s cabinet meeting, Minister for Overseas Pakistanis and Human Resource Development Chaudhry Salik Hussain told reporters that the decision had been finalised. He said the EOBI would now release around Rs10 billion in monthly pension payments, with long-serving pensioners eligible to receive more than Rs30,000 per month.
Hussain added that a dedicated committee had been constituted to expand the pension system by bringing in informal sector workers, domestic staff, and eventually agricultural labourers.
Officials said the combined measures aim to ease pressure on pensioners while gradually widening EOBI’s coverage.
