Rise in EOBI Pensions Greeted with Approval from Government, Which Endorses a 15% Boost
The federal cabinet has made a significant decision to boost the pension payments of thousands of retirees in Pakistan. In a move that is set to bring relief to many, the cabinet has approved a 15% increase in pensions under the Employees' Old-Age Benefits Institution (EOBI).
This increase, which was initially scheduled to take effect from January 1, 2025, has been moved up to September 1, 2022. This means that EOBI pensioners will be paid, including arrears, from the first of September this year.
The EOBI has assured that the pensions, along with all arrears, will be disbursed on September 1, 2022, not 2025 as initially planned. The institution is prepared to release Rs10 billion in monthly pension, as previously stated.
Pensioners with long service will now be able to receive a pension of more than Rs30,000 per month. However, it's important to note that this increase does not apply to the minimum pension of Rs11,500, which is effective from January 1, 2025.
In an effort to extend the benefits to a wider section of the society, a committee has been formed within the EOBI. This committee will work towards including the informal sector, home-based workers, and agricultural laborers into the EOBI system. Another committee has been established with a similar mandate, focusing on the inclusion of the informal sector and domestic workers.
The committee's objectives are ambitious, aiming to bring millions of unregistered workers into the formal sector and ensure they receive the benefits they deserve. This move is expected to provide a significant boost to the economy by increasing the purchasing power of a large segment of the population.
While the exact increase in pension for those not in the minimum category, beyond the 15% approved by the cabinet, is not specified in the text, the positive sentiment is clear. The government's commitment to the welfare of its elderly citizens is evident, and this decision is a step towards ensuring a more secure future for them.
