EOBI’s income reaches Rs116.4bn

LAHORE : The Employees’ Old-Age Benefits Institution (EOBI) has posted notable financial growth, adding Rs138.87 billion to its fund over the past 21 months, driven by better decisions, fiscal management and operational reforms.

According to the institution, by the end of March FY2024-25, Employees’ Old-Age Benefits Institution’s total income reached Rs116.4 billion, comprising Rs56.95 billion from contribution collections and Rs59.45 billion from investment returns which is poised to increase with three months remaining before the close of financial year.

Expenditures during the same period—including pension disbursements and administrative costs—stood at Rs44.17 billion.

The net gain to the fund was Rs72.23 billion. In comparison, during FY2023-24, Employees’ Old-Age Benefits Institution collected Rs60.58 billion in contributions and earned Rs68 billion in investment income. With expenses amounting to Rs61.94 billion, the institution added Rs66.64 billion to its fund in that fiscal year. The total size of the EOBI fund has now risen to Rs600 billion.

The institution currently supports 798,148 pensioners through its old-age, survivor, and invalidity schemes.

It also covers more than 11.4 million registered workers across 155,027 registered establishments.

Speaking to The News, Maratab Ali Dogar, Deputy Director General at EOBI, attributed the financial turnaround to the implementation of proactive policies and strengthened fiscal management and oversight of the institution by the chairman, Federal Minister and the Secretary Overseas Pakistanis and Human Resource Development.

He explained that under current regulations, employers contribute 5 percent of the minimum wage for each employee, while employees contribute 1 percent of their wage monthly. These contributions entitle insured individuals to pension benefits upon reaching 60 years of age for men and 55 for women, provided they have completed a minimum of 15 years of insurable employment. Dogar added that Employees’ Old-Age Benefits Institution also extends financial support to families of deceased insured persons and to individuals rendered unable to work due to disability. Furthermore, those who reach retirement age without qualifying for a monthly pension are eligible for a lump-sum grant payment.