Introduction:

Prior to this law, in Pakistan, there were so many labour laws like Work’s Compensation
Act, 1923 Factories Act, 1934, Payment of Wages Act,1936, West Pakistan Social
Security Ordinance, 1965 (Ordinance No: X of 1965), West Pakistan Industrial and
Commercial (Standing Orders) Ordinance, 1968, Companies Profit (workers’
Participation)Act,1968, West Pakistan Shops and Establishment Ordinance,1969,
Industrial Relation Ordinance,1969, Workers Welfare Fund Ordinance, 1971, Workers
Children (Education) Ordinance, 1972, etc. In many labour laws remedial, beneficial and
welfare clauses and sections were provided but none from these laws or others provide
such coverage of the old-age risk thus it was necessary to make a law that can provide
security in the eve of old age when a man becomes handicap to work hard, condition of
invalidity and in the case of death of a worker / employee the pension to the widows and
orphans. In the European countries such laws were in operation.

In view of this need, first time in Pakistan , in 1972, an Ordinance with the title of the
Employees' Old-Age Pension Ordinance (Ordinance X of 1972) was promulgated. Under
this legislation first time, in Pakistan , the Government indicates its desire to introduce
such a social security scheme for the betterment of the employees of private sectors. This
Ordinance was issued on 23rd April, 1972 where under Old Age Pension scheme was
introduced and a pension @ Rs; 60/= was suggested on completion of 20 years of service.
For this purpose retirement age was fixed at 55 years (50 years for female). This was a
provincial legislation that was intended to apply only to those establishments which
employed 100 or more workers, and wages for coverage under this scheme were
proposed to be fixed at Rs. 500/= per month, while the rate of the contribution was fixed
5%, to be paid by the employer. Before the implementation of the Employees' Old-Age
Pension Ordinance, 1972, it was realized that the provincial pension scheme would not
bear fruit thus the scheme was reshaped and after much work thereon the government
introduced a better scheme for the betterment, welfare and benefits of the people of
Pakistan.

EOB Act 1976 was enforced with effect from April 01, 1976, to achieve the objective of
Article 38 (C) of the Constitution, by providing for compulsory social insurance. It
extends Old-Age Benefits to insured persons or their survivors

Contributions:
EOBI does not receive any financial assistance from the Government for carrying out its
Operations. A contribution equal to 5% of minimum wages has to be paid by the
Employers of all the Industrial and Commercial Organizations where EOB act is
applicable. Contribution equal to 1% of minimum wages by the employees of said
Organizations.

Benefits:
Under EOB Scheme, Insured Persons are entitled to avail benefit like, Old-Age Pension
(on the event of retirement), Invalidity Pension (In case of permanent disability), Old-
Age Grant (an Insured Person attained superannuation age, but does not posses the
minimum threshold for pension) Survivor's Pension (in case an Insured Person is expired)

Pension Rates:
• Minimum rupees 3000/=
• Maximum as per formula

Rules And Regulation’s :

Registration Of Employers And Insured Persons

(1) An employer shall before expiration of thirty days from the day on
which the Act becomes applicable to the industry or establishment in respect
of which he is the employer, communicate to the Institution the name and
particulars of the industry or establishment in Form PR-01 and of every
insured person employed therein in Form PE-01 and, in the case of Form
PE-01, give the receipt appended to the Form to the insured persons.

(2) An insured person may also communicate his name and other particulars
to the Institution in Form

Audit and Accounts under Employees' Old-Age Benefits Rules

(1) For the purpose of these rules, a loan shall be deemed to fall due for re-
payment, and an installment of a loan shall be deemed to fall due for
payment, on the earliest date on which the lender could require repayment
 or, as the case may be, payment, if he exercised all options and rights
available to him.

(2) The accounts shall be signed by the Head of the Institution and by the
Chairman and at least one other member.

Contributions under Employees' Old-Age Benefits Rules 1976

(1) Contributions, falling due, at the end of the month, to which they relate,
shall be paid not later than the 15th of the next following month.

(2) The employer shall deduct, every month the amount of the insured
persons’ contribution, payable under section 9B of the Act from his wages.

(3)Where wages are received partly in cash and partly in kind, the employer
may deduct, the insured persons’ contributions, due for the period from the
amount of the wages paid in cash.

Employees’ Old-Age Benefits Regulations 1980 (GENERAL)

2. Definitions:
(1) In these regulations unless there is anything repugnant in the subject or
context,-
(a) “Act” means the Employees’ Old-Age Benefits Act, 1976 (XIV of 1976);
(b) “Form” means a form annexed to these regulations;
(c) “Institution” means the Employees’ Old-Age Benefits Institution
exercising and performing the powers and functions of the Institution under
the Act
(2) Words and expressions used in these regulations but not herein defined
shall have the same meaning as are assigned to them in the Act.

(2) Place of meetings:

The meetings of the Board will normally be held at the Head Office of
the Institution or at such other places as the President may, from time to
time, decide.