EOBI Pension Calculator

The Employees' Old-Age Benefits Institution (EOBI) is Pakistan's state pension for private-sector workers. Employers register their employees, and contributions of 6% of the notified minimum wage are paid each month: 5% by the employer and 1% by the employee. The base is the minimum wage, not your actual salary, which is why the contribution is a small, flat amount.

To get the old-age pension you must retire at 60 (men) or 55 (women) with at least 15 years of insurable employment. The monthly amount follows EOBI's published formula, subject to a minimum:

Each year of insurable employment therefore adds 2% of the average wage to the monthly pension. If the formula gives less than the minimum pension, currently Rs 11,500 a month, the minimum is paid.

A man aged 40 with 10 years of insurable employment who keeps contributing to 60 will have 30 years. At an average wage of Rs 40,700 the formula gives Rs 24,420 a month. He and his employer pay Rs 2,442 a month between them (Rs 407 from him) on a Rs 40,700 wage base.

Over those 30 years his own 1% share adds up to Rs 146,520 at this wage base, and the employer pays Rs 732,600. The pension of Rs 24,420 a month repays his own share in about 6 months of payments, which is why EOBI is worth keeping on your record even though the amount is modest.

The table uses a Rs 40,700 wage. At that wage the formula beats the minimum pension from 14.1 years, so everyone who qualifies (15 years or more) gets the formula amount and the minimum never applies. The minimum only lifts a pension when the average wage is below about Rs 38,333: at a Rs 37,000 wage, 15 years gives Rs 11,100 by the formula and the Rs 11,500 minimum is paid instead.

The wage base is where most confusion comes from. EOBI contributions follow the minimum wage notified by the government, and federal and provincial notifications differ. Reported figures include Rs 37,000 (federal and Balochistan wage until June 2026), Rs 40,000 (Punjab and Khyber Pakhtunkhwa, the 2025-26 level), Rs 40,700 (federal minimum wage announced in Budget 2026-27, as reported) and Rs 43,000 (Sindh, cabinet-approved from July 1, 2026). EOBI's own FAQ ties contributions to the minimum wage notified by the Federal Government, so the calculator starts from the federal figure, Rs 40,700. Ask your employer which wage it contributes on. The Sindh figure is cabinet-approved from July 1, 2026; the 2026-27 wages for Punjab and Khyber Pakhtunkhwa are not yet notified, so Rs 40,000 is their 2025-26 level and a higher figure may follow.

What we could not confirm: EOBI's FAQ states the formula but does not say how "average monthly wages" is averaged over a career. The calculator therefore lets you enter the wage and defaults to the minimum wage. Treat the result as a planning estimate and check your entitlement with EOBI when you near retirement.

What the calculator does not model: Dawn reports that the cabinet raised formula-based pensions by 15% from January 1, 2025, alongside the minimum pension. The reports do not say how that uplift combines with the published formula for someone retiring now, so the estimate uses the formula as published and the minimum. Future notified increases are not modelled either, and your actual pension may be higher.

• Old-age grant: if you reach retirement age with at least 2 but fewer than 15 years of insurable employment, you receive a one-time grant of one month's average wage for each completed year, with a part-year above six months counted.
• Invalidity pension: paid before retirement age when an EOBI medical board finds you invalid, after 15 years of contributions or at least 5 years of employment with 3 of the last 5 years contributed. It uses the same formula.
• Survivor pension: a spouse receives a life pension equal to the minimum pension if the insured person dies in service after 36 months of insurable employment (after 5 years if not employed), or equal to the pension being paid if the person was already a pensioner. Minor children and, in some cases, parents can also receive it.

How much EOBI actually changes your plan

EOBI ties increases to the financial position of its Pension Fund: on August 29, 2026 it said any further rise depends on an actuarial assessment. Do not plan on the pension rising faster than inflation. Add the EOBI amount as pension income in the retirement calculator, and build the rest through the provident fund, your gratuity and a Voluntary Pension System account.