EOBI Pension Increase 2025 – Latest Government Announcement

EOBI Pension Increase 2025 is the most awaited news for thousands of retired workers across Pakistan. The federal cabinet has finally approved a historic raise in the Employees’ Old-Age Benefits Institution (EOBI) pensions. The minimum pension has gone up from Rs. 10,000 to Rs. 11,500 per month, while formula-based pensions have been enhanced by 15%, effective from January 1, 2025. Pensioners will also get arrears with payments starting from September 1, 2025.

This decision impacts nearly 500,000 pensioners nationwide, many of whom depend solely on EOBI for survival amid rising inflation. Alongside, the government has announced plans to include workers from the informal, agricultural, and domestic sectors into the pension net — a move that could reshape Pakistan’s social security system.

What is EOBI?

The Employees’ Old-Age Benefits Institution (EOBI) is a social insurance scheme introduced in 1976 to provide pensions to registered workers after retirement. Both employees and employers contribute to the fund. On retirement, workers receive monthly pensions based on years of contribution and wages.

Over the years, EOBI has often faced financial constraints, but recent reforms have strengthened its capacity, enabling the 2025 pension increase. According to reports, EOBI revenue rose by 40% in FY 2024–25, which paved the way for the government to announce this increment.

👉 Official EOBI Portal: eobi.gov.pk

Government of Pakistan’s Official Statement on EOBI Pension Increase

The Government of Pakistan, through the Federal Cabinet and represented by the Federal Minister for Overseas Pakistanis & Human Resource Development, Chaudhry Salik Hussain, officially issued a notification confirming the EOBI Pension Increase 2025. The statement noted that approximately 500,000 pensioners will begin receiving enhanced pensions—minimum pension raised from Rs. 10,000 to Rs. 11,500 per month, and formula-based pensions increased by 15%, all effective from January 1, 2025, with arrears to be disbursed from September 1, 2025. The release emphasized that EOBI will allocate nearly Rs. 10 billion per month to cover the revised pension payroll, marking the government’s commitment to bolstering social protection for retired workers.

Details of EOBI Pension Increase 2025

Minimum Pension Increased

• Previous: Rs. 10,000/month
• New: Rs. 11,500/month (effective Jan 1, 2025)
• Arrears to be disbursed from Sept 1, 2025.

Formula-Based Pensions

• A 15% increase in pensions calculated under EOBI’s formula.
• Beneficiaries with long service can now receive over Rs. 30,000/month.

Arrears Payments

• Pensioners will receive arrears alongside September payments, covering January–August 2025.

Scale of Impact

• Around 500,000 pensioners across Pakistan to benefit.
• EOBI will disburse nearly Rs. 10 billion monthly under the revised structure.

Ground Reality of EOBI Pensioners

While the announcement is welcome, the ground reality paints a different picture:

1. High Cost of Living
   • Inflation in food, healthcare, and utilities makes Rs. 11,500 barely sufficient for survival.
   • Many pensioners argue that the pension should be Rs. 25,000 minimum to cope with real expenses.
2. Delayed Payments & Banking Issues
   • Pensioners in rural areas face delayed payments, ATM errors, and long queues.
   • Some depend on intermediaries to withdraw pensions, reducing their actual take-home amount.
3. Exclusion of Informal Sector Workers
   • Millions of informal laborers, domestic workers, and agricultural employees are still excluded.
   • The newly formed committee for inclusion of these groups offers hope, but execution will be challenging.

Public Reaction to the Pension Increase

• Positive: Many pensioners and workers’ unions welcomed the government’s initiative, calling it a step toward fulfilling Article 38(c) of the Constitution, which guarantees social security for workers.
• Critical: Retirees and labor activists argue that the increment is not enough to counter Pakistan’s 40-year high inflation rates.

👉 Read coverage at Dawn News and The Express Tribune. (DoFollow)

Economic Impact of the 2025 Increase

• On Pensioners: Provides some relief, especially for those fully dependent on EOBI.
• On Government: Monthly disbursement jumps to Rs. 10 billion, testing fiscal discipline.
• On Society: May boost spending power of retirees, indirectly supporting the economy.

Comparison with Past Pension Increases

• 2019: Minimum pension raised to Rs. 8,500.
• 2020: Increased to Rs. 10,000.
• 2025: Now Rs. 11,500 + 15% formula-based hike.

This shows slow but steady progress, though not proportionate to inflation.

How to Check Your Updated Pension

1. Visit EOBI’s official website.
2. Go to the “Insured Persons/Beneficiaries” section.
3. Enter your CNIC to check revised pension details.
4. Ensure your bank/mobile wallet account is updated to avoid delays.

Future of EOBI – Challenges and Opportunities

Challenges

• Sustainability of funds if pension coverage expands too quickly.
• Need for digital efficiency to avoid corruption and delays.
• Increasing pressure due to Pakistan’s aging population.

Opportunities

• Expand pension net to cover millions of unprotected workers.
• Leverage technology for seamless payments.
• Use EOBI funds for safe investments to generate long-term returns.

Conclusion

The EOBI Pension Increase 2025 – Latest Government Announcement is a milestone in Pakistan’s social protection framework. By raising the minimum pension to Rs. 11,500 and granting a 15% formula-based hike, the government has provided partial relief to retirees. The addition of arrears from September 2025 is another welcome step.

However, considering Pakistan’s economic reality, many pensioners still feel left behind. Unless pensions match inflation and coverage expands to informal workers, the promise of social security will remain incomplete.

The announcement is a step forward but not the final solution. True social justice will come when every worker, formal or informal, gets dignified post-retirement support.