EOBI has 9.8 million registered workers

LAHORE:The Employees' Old-Age Benefits Institution (EOBI) has denied Lahore Chamber of Commerce and Industry’s allegations made through a press release that EOBI is conducting raids on establishments using coercive measures causing distress and anxiety among businessmen.

The EOBI has clarified that it conducts inspections according to the law to register workers that are not registered with the institution. It further stated that there are few recoveries even against chronic defaulters as the primary objective is to ensure compliance with Employees Old Age Act 1976 to protect the rights of the employees.

The News found that many employers resist or oppose EOBI's efforts to register workers. The Lahore Chamber of Commerce and Industry (LCCI) has expressed concerns over EOBI's increasing raids on business premises, describing them as a threat to economic stability and investor confidence. Business owners argue that such actions create anxiety and disrupt operations, especially amid existing challenges like inflation and high energy costs.

As of November 2023, the Employees' Old-Age Benefits Institution (EOBI) in Pakistan has approximately 9.8 million registered workers out of over 70 million workers operating at different levels.

This figure represents a portion of the country's workforce, yet it also highlights that a substantial number of workers remain unregistered and, consequently, are not covered under EOBI's pension schemes. A significant number of employers reportedly violate the EOBI Act by not registering their employees, thereby denying them their rightful pension benefits.

Employers are required to contribute 5 percent of the minimum wage for each employee, while employees contribute 1 percent. With the current minimum wage set at Rs32,000 per month, this translates to a monthly contribution of Rs1,600 by the employer and Rs320 by the employee, totaling Rs1,920 per employee each month.

These monthly payments ensure that insured persons upon reaching the retirement age of 60 for men and 55 for women, provided they have completed at least 15 years of insurable employment.

The EOBI also provide financial assistance to the family of a deceased insured person. Support for insured individuals who are unable to work due to disability is also provided. A lump-sum payment to those who have reached the superannuation age but do not meet the minimum threshold for a pension is also given.