What Is the EOBI Calculator?
The Employees' Old-Age Benefits Institution (EOBI) is a government body in Pakistan that administers a mandatory pension scheme for private-sector employees. Both the employer and employee contribute a fixed percentage of the employee’s minimum wages each month. Upon retirement (age 60 for men, 55 for women), the employee receives a monthly pension for life.
This calculator estimates your monthly EOBI pension and the combined monthly contribution based on the 2026-27 EOBI Act rates.
How to Use This Calculator
- Enter your monthly basic salary — EOBI contributions are calculated on the higher of your actual basic salary or the minimum wage (PKR 37,000 in 2026).
- Enter your total years of covered employment (years you have been registered with EOBI).
- Click Calculate. The result shows your monthly pension entitlement and the employer + employee contribution split.
EOBI Contribution & Pension Formula
Employee Contribution: 1% of monthly wages (min: PKR 370/month for 2026)
Employer Contribution: 5% of monthly wages (min: PKR 1,850/month for 2026)
Total: 6% of insurable wages per month
Monthly Pension: 2% × Insurable Wages × Years of Service
(Subject to minimum pension floor of PKR 10,000/month for 2026)
Worked Example
An employee earning PKR 50,000 basic salary retires after 25 years of EOBI coverage.
- Insurable wages: PKR 50,000
- Monthly pension: 2% × 50,000 × 25 = PKR 25,000/month
- Employee contribution: 1% × 50,000 = PKR 500/month
- Employer contribution: 5% × 50,000 = PKR 2,500/month
- Combined monthly contribution: PKR 3,000
Practical Use Cases
- Retirement planning: See how much monthly pension your current EOBI coverage will provide, and whether you need to supplement it with a personal savings plan.
- HR compliance: Employers with 5+ employees are legally required to register and make EOBI contributions. Use this to verify correct deduction amounts on payrolls.
- Job comparison: EOBI registration is a sign of a formal employer. Checking if your employer makes contributions protects your future pension rights.
Common Mistakes to Avoid
- Confusing EOBI with Provident Fund: EOBI is a pension scheme — you cannot withdraw a lump sum on resignation. Provident Fund is a savings scheme with a lump-sum payout. They are completely separate.
- Assuming it covers all employees: EOBI applies to establishments with 5 or more employees. Domestic workers, agricultural workers, and employees of small informal businesses may not be covered.
- Not tracking contribution history: Your pension is based on years of covered service. If an employer fails to make contributions on your behalf, those years may not count. Verify your EOBI contribution history through the EOBI portal.
Accuracy Notes
Contribution percentages and minimum wage thresholds are set by the federal government annually. The minimum pension floor is revised periodically. This calculator uses the 2026-27 rates (minimum wage PKR 37,000, minimum pension PKR 10,000). Actual pension may vary based on formal verification of insurable wages by EOBI at retirement.
Frequently Asked Questions
Can I withdraw my EOBI contributions if I resign?
No. EOBI is a defined-benefit pension scheme, not a savings account. You cannot withdraw accumulated contributions on resignation. Benefits are only paid as a monthly pension upon reaching retirement age, or as a survivor's pension to dependents.
What is the minimum EOBI pension in 2026?
The federal government has set the minimum EOBI pension floor at PKR 10,000 per month for 2026. Even employees with short contribution histories receive at least this amount upon retirement.
Who is responsible for EOBI registration?
The employer is legally responsible for registering eligible employees with EOBI and making monthly contributions on their behalf. Failure to do so carries penalties under the EOBI Act 1976.
Is EOBI pension taxable?
EOBI pension is generally tax-exempt under Pakistan’s income tax laws for low-income pensioners. Higher combined pension income that crosses the annual taxable threshold may attract tax on the excess.
📅 Last Updated: April 2026
📋 Source: EOBI Act 1976 & Federal Budget 2026-27 Rates