KARACHI:
A recent report highlights that the Employees Old Age Benefit Institution (EOBI) has introduced a new pension system — the first major reform in its 40-year history. Under this formula-based system, pensions will be determined by contribution amounts and service duration. The maximum pension has been set at Rs30,000 per month, while the minimum remains Rs11,500.
While this initiative may seem progressive, it primarily benefits future retirees — those retiring after 2026 — while disregarding the financial struggles of over 500,000 existing pensioners who continue to receive a meager Rs11,500. With the rising cost of living, this amount is grossly inadequate to sustain even a basic standard of living.
More importantly, the Rs30,000 pension cap raises serious legal and ethical concerns. The EOBI Act, 1976 guarantees pensions based on total contributions, without arbitrary limits. Section 37 of the Act explicitly states that pension entitlements cannot be altered without legal amendments. By capping pensions, EOBI is disregarding the rightful claims of workers who have contributed significantly throughout their careers.
EPWA (EOBI Pensioners Welfare Association), labour unions and pensioners are rightfully demanding an increase in the minimum pension to Rs37,000, matching the country’s minimum wage and addressing inflationary pressures. Any attempt to divert attention from this legitimate demand is unjust and unacceptable. If left unresolved, the issue could escalate into legal action or mass protests, as workers and pensioners fight for fair, inflation-adjusted pensions.
The current debate underscores the growing tension between fiscal policies and workers’ welfare. Pensioners are not seeking charity; they are demanding what is rightfully theirs under the law. The government and EOBI must act responsibly and ensure that pension reforms serve all workers — both present and future — rather than leaving a majority behind.
Azfar Shamim
Karachi
