Enter an amount to see the result.
Short answer: EOBI old-age pension is paid to a man from age 60, or a woman from age 55, once contributions have been paid for at least 15 years. The monthly pension is your average monthly wage for the last 12 months of contributions, multiplied by your years of insurable employment, divided by 50. So 20 years on a contribution wage of Rs 37,000 gives Rs 14,800 a month. With 2 to 14 years of contributions you get a one-off old-age grant instead: one month’s wage for each year.
Key takeaways
- Pension age is 60 for men and 55 for women, with at least 15 years of paid contributions.
- EOBI pension formula: average monthly wage x years of insurable employment / 50.
- For the pension, six months or more of a final part year counts as a full year.
- Less than 15 years but at least 2 years gives a lump sum old-age grant, not a monthly pension.
- Contributions are 5% from the employer and 1% from the worker, on the notified minimum wage, not your full salary.
- If the formula gives less than the minimum pension, EOBI pays the minimum.
How to use this EOBI pension calculator
Enter your gender, date of birth, claim date, the years and months of paid EOBI contributions, and the average monthly wage those contributions were paid on in your last 12 months. Tick the early retirement box only if your employer retired you before 60 at its fixed retirement age. You will see whether you qualify for a pension or a grant, and how much.
The minimum pension field is optional and empty on purpose (see below). If you enter it, the calculator pays the higher of the formula and the minimum, as the law does.
I built it from the EOBI Act 1976 on Pakistan Code and the EOBI FAQ of the Ministry of Overseas Pakistanis, which controls EOBI.
EOBI pension eligibility
Section 22 of the Act gives a monthly old-age pension when two conditions are met:
- Age: over 60 for a man, over 55 for a woman. A worker employed in mining for at least ten years right before retirement gets the age reduced by five years.
- Contributions: paid for not less than fifteen years.
A “year” here is not a calendar year of working. The Act defines it as 365 days for which contributions are payable, or 312 days for workers who are not paid for weekly holidays. Gaps when nobody paid contributions for you do not count.
Two protections matter in real life: if you paid your own 1% regularly, your employer’s failure to pay its share does not affect your benefit, and if you were insured on or before 30 June 2002, unpaid employer contributions before that date do not reduce your rights.
Who is covered
The Act applies to establishments with five or more employees (the Ministry FAQ still says ten, but the Act was changed to five in 2002). Government servants, the armed forces, police, railways, local councils, WAPDA and banks are outside EOBI, and company directors are not treated as employees.
EOBI pension formula
The Ministry’s FAQ states the formula in one line:
Monthly pension = average monthly wages x number of years of insurable employment / 50
Dividing by 50 means 2% of your wage for every year. Three rules from the Schedule decide the inputs:
- Wage: the wage on which contributions were paid in the 12 calendar months right before you meet the conditions for the benefit.
- Part year: six months or more of insurable employment counts as one full year.
- Cut off: years worked after you become entitled to a pension are not added.
Your pension is not based on your full salary. The Act defines “wages” as the rates declared under the minimum wage law, and the Ministry says contributions are collected at 6% of the minimum wage notified by the Federal Government. So the wage in the formula is usually the minimum wage that applied to your last year of contributions. Check the figure in your own EOBI contribution record before you rely on any estimate.
Worked examples
The wages below are example figures for the arithmetic, not an official EOBI contribution wage.
| Person | Contributions paid | Years counted | Average wage | Pension per formula |
|---|---|---|---|---|
| Man, 60 | 20 years | 20 | Rs 37,000 | Rs 14,800 |
| Woman, 55 | 15 years 7 months | 16 | Rs 32,000 | Rs 10,240 |
| Man, 60 | 25 years | 25 | Rs 40,000 | Rs 20,000 |
| Man, 60 | 30 years | 30 | Rs 40,000 | Rs 24,000 |
In row two, the formula gives Rs 10,240, which is below the minimum pension, so EOBI pays the minimum instead. With 15 to 18 years of contributions this is common.
EOBI pension is 2% of your contribution wage for every year of insurable employment, and never less than the minimum pension.
EOBI minimum pension in 2026
The Schedule sets a minimum pension. The consolidated text on Pakistan Code still prints Rs 2,000, the floor for pensions from 1 July 2008, and section 21 allows no benefit change without an actuarial valuation.
The state news agency APP reported on 28 August 2025 that the pension was increased from Rs 10,000 to Rs 11,500 with effect from 1 January 2025, and that the increase would be paid with arrears on 1 September 2025. In August 2026 EOBI said any further increase depends on the Pension Fund and an actuarial assessment.
Why the calculator does not fill in the minimum: when I prepared this page on 10 November 2026, the EOBI website did not open, so I could not read EOBI’s own notification. I did not find any change to the EOBI minimum pension in the 2026-27 federal budget. Until I can confirm the figure from EOBI, you enter it yourself. Your EOBI regional office or the EOBI helpline can tell you the current amount.
EOBI old-age grant: less than 15 years
If you reach 60 (55 for a woman or a mine worker) and retire with contributions for less than fifteen years, but at least two, section 22A gives you an old-age grant. It is a single lump sum, not a monthly payment:
Old-age grant = one month’s average monthly wage x completed years (plus one for a part year over six months)
Notice the small difference in wording. For the pension, six months or more counts as a year. For the grant, only a part year “in excess of six months” counts. So 10 years and 6 months gives a grant for 10 years, while 10 years and 7 months gives 11.
| Contributions paid | Years counted for grant | Average wage | Old-age grant |
|---|---|---|---|
| 14 years 8 months | 15 | Rs 37,000 | Rs 555,000 |
| 10 years 6 months | 10 | Rs 37,000 | Rs 370,000 |
| 1 year 10 months | No grant | Rs 37,000 | Rs 0 |
The first row hurts: four months short of 15 years means a one-time payment instead of a lifelong pension. If you are close, keep contributions going until you cross the line.
Reduced pension before 60
Some employers retire staff at 58 or 59. Section 22(2C) allows a reduced pension from age 55 (50 for a woman) if EOBI is satisfied that the employer has a fixed retirement age below 60 (55), the employer certifies you were retired at that age, and 15 years of contributions were paid. The pension, and the minimum pension too, is cut by 0.5% for every completed month you are short of 60 (55). The cut is for life.
Example: a man retired by his employer at exactly 58, with 25 years and a wage of Rs 40,000. The formula gives Rs 20,000. He is 24 months short of 60, so the cut is 12%, and the pension becomes Rs 17,600 a month.
EOBI contributions: who pays what
| Who | Rate | Law |
|---|---|---|
| Employer | 5% of wages | Section 9(1) |
| Employee | 1% of wages | Section 9B (from 1 July 2001) |
| Total | 6% of the notified minimum wage | Ministry FAQ 5 |
Your employer cannot deduct its 5% share from your salary. Contributions stop at 60 (55 for a woman) or once the pension starts.
Survivors pension and invalidity pension
The calculator covers the old-age pension and grant only. Sections 22B and 23 add two more benefits.
- Survivors pension: if an insured person dies while working after at least 36 months of insurable employment, or after leaving work with at least 5 years, the spouse gets a life pension, which the Ministry FAQ says equals the minimum pension. After the spouse, minor children share it (sons until 18, daughters until 18 or marriage), then parents for five years.
- Invalidity pension: for permanent invalidity before 60 (55 for women) that leaves you unable to earn more than one third of your normal earnings. You need 15 years of contributions, or 5 years since you joined with 3 of the last 5 years paid. A medical board assesses it, and after five continuous years it continues for life.
How to claim and avoid delays
Apply in writing at your EOBI regional office as soon as you reach pension age. The pension starts from the month after you qualify, but arrears are paid for no more than six months before the month you apply. Keep your CNIC, EOBI card and proof of service. Old-age and survivors pension are suspended while the pensioner is outside Pakistan, and arrears can be claimed on return.
If you also left a private job, your employer may owe you gratuity under the Standing Orders law. Use my gratuity calculator for Pakistan to estimate it, and see all my free calculators for Pakistan.
Frequently asked questions
How is EOBI pension calculated?
Average monthly contribution wage of your last 12 months x years of insurable employment / 50. Six months or more of a part year counts as one year. If the answer is below the minimum pension, the minimum is paid.
What is the EOBI pension eligibility age?
60 for men and 55 for women, with at least 15 years of paid contributions. Long serving mine workers qualify five years earlier, and a reduced pension is possible from 55 (50 for women) if your employer retired you at its fixed retirement age.
What is the EOBI pension in 2026?
It depends on your wage and years. The minimum is Rs 11,500 a month from 1 January 2025, set by a Ministry of Overseas Pakistanis and HRD notification of 31 July 2025 that also added 15% to formula pensions. I found no increase in the 2026-27 budget, and the Ministry told the National Assembly in October 2026 that any new increase depends on the actuarial valuation now under way. The calculator applies Rs 11,500 by default.
How much is the EOBI old-age grant?
One month’s average contribution wage for each completed year of insurable employment, plus one year if the part year is over six months. You need at least 2 and less than 15 years of contributions.
Can I get EOBI pension with 10 years of service?
Not a monthly old-age pension. With 10 years you get the old-age grant at pension age, though 10 years can still qualify your family for the survivors pension.
Is EOBI pension based on my full salary?
No. Contributions are charged on the notified minimum wage, and the pension uses the wage on which contributions were paid. A higher salary does not raise your EOBI pension.
Is there an official EOBI pension calculator?
EOBI publishes the formula; this tool applies it with the age, 15 year and part year rules from the Act. EOBI fixes the exact amount from your record.
This calculator gives an estimate based on sections 22, 22A and the Schedule of the Employees’ Old-Age Benefits Act 1976 as published on Pakistan Code, and the EOBI FAQ of the Ministry of Overseas Pakistanis and Human Resource Development, last checked 10 November 2026. It follows the formula exactly for the wage and years you enter, but it does not check your contribution record, the minimum pension EOBI pays today, transitional rules for people insured before July 2008, survivors or invalidity pension. Your actual pension is what EOBI sanctions. For your own case, contact your EOBI regional office.