The EOBI pension formula
Monthly pension = (average monthly wages × years of insurable employment) ÷ 50
Six months or more of a year counts as a full year · minimum Rs 11,500 a month
Six months or more of a year counts as a full year · minimum Rs 11,500 a month
The formula is in the schedule to the Employees’ Old-Age Benefits Act 1976 (EOBI law). EOBI states that the minimum pension is Rs 11,500 a month (eobi.gov.pk).
Who qualifies
- Old-age pension: age 60 for men or 55 for women, with contributions for at least 15 years. People employed in mining for at least 10 years qualify five years earlier.
- Old-age grant: a one-time payment if you have at least 2 but fewer than 15 years of contributions.
- Invalidity and survivors’ pensions are also paid under the Act in qualifying cases.
Pension examples
| Average wages | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|
| Rs 30,000 | Rs 11,500 (min) | Rs 12,000 | Rs 15,000 | Rs 18,000 |
| Rs 37,000 | Rs 11,500 (min) | Rs 14,800 | Rs 18,500 | Rs 22,200 |
| Rs 40,000 | Rs 12,000 | Rs 16,000 | Rs 20,000 | Rs 24,000 |
| Rs 45,000 | Rs 13,500 | Rs 18,000 | Rs 22,500 | Rs 27,000 |
| Rs 50,000 | Rs 15,000 | Rs 20,000 | Rs 25,000 | Rs 30,000 |
Contributions
According to EOBI, employers contribute 5% and workers 1% of the minimum wage. Minimum wages for 2026-27:
| Area | Monthly minimum wage | Note |
|---|---|---|
| Islamabad (federal) | Rs 40,700 | Budget 2026-27 |
| Sindh | Rs 43,000 | Sindh cabinet, Aug 2026 |
| Khyber Pakhtunkhwa | Rs 45,000 | KP budget 2026-27 |
| Punjab | Rs 40,000 | 2025-26 rate; 2026-27 notification not yet found |
| Balochistan | Rs 40,000 | unconfirmed; 2026-27 notification not yet found |
Estimate only. Your actual pension depends on the wages and periods recorded by EOBI. Check your contribution record on the EOBI website or at a regional office before you retire. A reform bill proposing a new formula was under discussion in 2026 but had not been enacted when this page was checked (2026-10-04).
Last reviewed: 2026-10-04 · Disclaimer