Pakistan Payroll Outsourcing Alert
Payroll & HR Insights From a Global Payroll Outsourcing Provider
Notification of Pension Rate Increase of 20% for EOBI Pensioners
The Government of Pakistan, Ministry of Overseas Pakistanis and Human Resources Development has issued a Notification (No.7 (3)2018-EOBI dated 30-01-2019) regarding the notification of an increased rate of pension to 20% for EOBI Pensioners.
(No.7 (3)2018-EOBI) states “In exercise of the powers conferred by sub-section (a) of section 2 of employees’ Old-Age Benefits Act, 1976, the Federal Government is pleased to allow a 20% increase in the rate of pension to Rs. 6,500/- per month, with effect from 1st September 2018.
The federal government has approved a considerable increase in the old age benefits for senior citizens. Following the government’s approval, the Employees Old-Age Benefits Institution (EOBI) has announced a 20 percent rise in pensions for elderly people.
After the increment, the minimum dispensation would now be Rs. 6,500 per month, previously this was only Rs. 5,250. Moreover, the government has also ended the requirement of National Identity Cards for Overseas Pakistanis (NICOP) to receive their pensions.
Both decisions were taken in a federal cabinet meeting chaired by the Prime Minister of Pakistan on Tuesday.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above changes.