EOBI contribution is 6% of the minimum wage for each insured worker: 5% paid by the employer and 1% by the worker, deducted from pay. It is worked on the minimum wage, not the actual salary. On the Islamabad minimum wage of Rs 40,700 in force from 1 July 2026, that is Rs 2,035 from the employer and Rs 407 from the worker each month.
Enter your number of employees and pick the wage for the period you are paying for. The calculator gives the shares per worker, the monthly amount payable to EOBI, the yearly cost and the increase for late payment.
EOBI contribution per worker by year
EOBI adopts the minimum wage for unskilled workers each year and collects both shares on it.
| Period | Minimum wage | Employer (5%) | Employee (1%) | Total a month |
|---|---|---|---|---|
| from 1 July 2026 | Rs 40,700 | Rs 2,035 | Rs 407 | Rs 2,442 |
| 1 July 2024 to 30 June 2026 | Rs 37,000 | Rs 1,850 | Rs 370 | Rs 2,220 |
| 1 July 2023 to 30 June 2024 | Rs 32,000 | Rs 1,600 | Rs 320 | Rs 1,920 |
| 1 July 2022 to 30 June 2023 | Rs 25,000 | Rs 1,250 | Rs 250 | Rs 1,500 |
| 1 July 2021 to 30 June 2022 | Rs 20,000 | Rs 1,000 | Rs 200 | Rs 1,200 |
The wage from 1 July 2026 is the Islamabad minimum wage notified on 19 August 2026. If July and August 2026 were paid on the old wage, expect arrears for the difference. The amount on your EOBI challan is the one to pay.
How EOBI contribution is worked out
- Take the minimum wage used for EOBI. Rs 40,700 a month from 1 July 2026; Rs 37,000 from 1 July 2024 to 30 June 2026.
- Employer share: 5% of that wage, paid by the employer out of its own pocket.
- Employee share: 1% of that wage, deducted from the worker's pay by the employer.
- Multiply by the number of insured workers and pay the total to EOBI.
A worker earning Rs 90,000 and a worker earning Rs 40,700 cost the same in EOBI. The Act defines wages by reference to the minimum wage for unskilled workers, and EOBI collects on that figure. This is also why the wage on most EOBI records, and so the pension, is close to the minimum wage.
Worked example
A workshop with 12 insured workers, paying for 2026-27:
- Employer share: 5% of Rs 40,700 = Rs 2,035 per worker, Rs 24,420 for 12.
- Employee shares: 1% of Rs 40,700 = Rs 407 per worker, Rs 4,884 for 12.
- Payable to EOBI each month: Rs 29,304.
- Employer cost for the year: Rs 293,040. With the workers' shares, Rs 351,648 goes to EOBI in the year.
EOBI contribution for 10 to 250 employees
At the current wage in the data file.
| Employees | Employer share a month | Employee shares a month | Total a month | Total a year |
|---|---|---|---|---|
| 10 | Rs 20,350 | Rs 4,070 | Rs 24,420 | Rs 293,040 |
| 20 | Rs 40,700 | Rs 8,140 | Rs 48,840 | Rs 586,080 |
| 50 | Rs 101,750 | Rs 20,350 | Rs 122,100 | Rs 1,465,200 |
| 100 | Rs 203,500 | Rs 40,700 | Rs 244,200 | Rs 2,930,400 |
| 250 | Rs 508,750 | Rs 101,750 | Rs 610,500 | Rs 7,326,000 |
Who must register and pay
The Employees' Old-Age Benefits Act 1976 applies to every industry or establishment where 10 or more persons are employed, or were employed on any day in the previous 12 months. Once covered, it stays covered even if staff numbers fall. Smaller employers may register voluntarily.
Contribution is not payable for a worker who is already drawing EOBI old-age pension, or for a man who has reached 60 or a woman who has reached 55. Leave those workers out of the head count.
Due date and late payment
Under the Employees' Old-Age Benefits (Contributions) Rules 1976, the contribution for a month must be paid by the 15th of the following month. If the employer does not deduct the worker's share or pay on time, the amount due is increased by 2% for every month or part of a month it stays unpaid, up to a maximum of 50%.
Three months late on the example above adds 6%: Rs 1,758 on one month's Rs 29,304. Twenty-five months or more reaches the 50% cap.
For what the contributions buy later, see the EOBI pension calculator. For the minimum wage in each province, see the minimum wage calculator.
The minimum wage for EOBI changes from 1 July each year once it is notified, often a few weeks late. Pick the wage for the months you are paying for. This calculator is not affiliated with EOBI; your challan shows the amount EOBI expects.
EOBI contribution questions
How much is EOBI contribution in 2026?
From 1 July 2026 it is worked on the Islamabad minimum wage of Rs 40,700: Rs 2,035 a month from the employer (5%) and Rs 407 from the employee (1%), Rs 2,442 in all for each insured worker. Before that, on Rs 37,000, it was Rs 1,850 and Rs 370.
Is EOBI deducted on the full salary?
No. Both shares are worked on the minimum wage used for EOBI, not on the actual salary. A manager and a helper cost the employer the same Rs 2,035 a month in EOBI contribution.
What is the EOBI contribution rate for employers and employees?
The employer pays 5% and the insured person pays 1%, so 6% in total, under sections 9 and 9B of the EOB Act 1976. The employer deducts the 1% from the worker's pay and deposits both together.
When is EOBI contribution due?
By the 15th of the month after the month it relates to. The July contribution is due by 15 August. Late payment adds 2% for each month or part of a month, up to 50%.
Do small businesses have to pay EOBI?
The Act covers establishments with 10 or more employees, counting any day in the last 12 months. An employer with fewer staff can register voluntarily. Once covered, the business stays covered even if staff numbers drop.
Related tools
Last reviewed 30 September 2026. Results are estimates; official notices always take precedence.