EOBI pension is your average monthly wage over the last 12 months x years of insurable employment / 50, which is 2% of the wage for each year. With a wage of Rs 40,000 and 25 years that is Rs 40,000 x 25 / 50 = Rs 20,000 a month. EOBI pays at least Rs 11,500.
You need 15 years of insurable employment and age 60 (men) or 55 (women). With fewer years EOBI pays a one-off old-age grant instead, once you reach pension age.
How EOBI pension is calculated
- Count insurable years. A part year of six months or more counts as a full year under the Schedule to the Employees' Old-Age Benefits Act 1976. In December 2025 the Federal Constitutional Court held that 14 years 10 months counts as 15 years for old-age pension.
- Average wage. The average monthly wage on which contributions were paid in the last 12 months.
- Pension = average wage x years / 50.
- Minimum. If the result is below Rs 11,500, EOBI pays Rs 11,500.
Employers pay EOBI contributions of 5% and employees 1% of the minimum wage, so the wage on your EOBI record is usually the minimum wage of that time, not your full salary. At the federal minimum wage of Rs 40,000 set for 2025-26, the contributions are Rs 2,000 from the employer and Rs 400 from the employee each month. Check your EOBI statement for the wage actually reported.
Worked examples
| Case | Working | Monthly pension |
|---|---|---|
| Man, 60, 25 years, wage Rs 40,000 | 40,000 x 25 / 50 | Rs 20,000 |
| Same, claiming early at 57 years 6 months | 30 months early x 0.5% = 15% cut | Rs 17,000 |
| 14 years 6 months, wage Rs 37,000 | counts as 15 years: Rs 11,100, below the minimum | Rs 11,500 |
| 12 years at 60, wage Rs 40,000 | under 15 years, so a grant: 40,000 x 12 | Rs 480,000 once |
EOBI pension by years and wage
Formula pension, or the minimum where the formula gives less.
| Insurable years | Wage Rs 37,000 | Wage Rs 40,000 |
|---|---|---|
| 15 | Rs 11,500 (minimum) | Rs 12,000 |
| 20 | Rs 14,800 | Rs 16,000 |
| 25 | Rs 18,500 | Rs 20,000 |
| 30 | Rs 22,200 | Rs 24,000 |
| 35 | Rs 25,900 | Rs 28,000 |
Early pension, invalidity and survivors
Early pension. Men from 55 and women from 50 can claim a reduced pension with 15 years of contributions. It is cut by 0.5% for each month before the normal age, so 5 years early costs 30%. The US Social Security Administration's summary of the scheme notes that early pension is not available in Sindh.
Invalidity pension. Paid on the same formula if a medical board finds at least 67% loss of earning capacity, with 15 years of contributions, or 5 years including 3 in the last 5 years.
Old-age grant. If you reach pension age with under 15 years, EOBI pays one month's average wage for each year of contributions as a lump sum. It is not paid early, and EOBI may ask for a minimum insurable period, so check with your regional office.
Survivors' pension. When an insured person or pensioner dies, the widow or widower, and in some cases children or other dependants, can claim a survivors' pension. We do not calculate it here because the share depends on the family.
The minimum pension was raised from Rs 10,000 to Rs 11,500 in 2025, along with a 15% increase in formula pensions for existing pensioners. A parliamentary committee asked in November 2025 for a higher minimum; we found no newer figure as of September 2026. This calculator is a guide; EOBI's regional office confirms the final amount from your contribution record.
EOBI questions
What is the EOBI pension formula?
Average monthly wage of the last 12 months x years of insurable employment / 50. It works out to 2% of the wage for each year. For Rs 40,000 and 30 years: 40,000 x 30 / 50 = Rs 24,000 a month.
What is the minimum EOBI pension in 2026?
Rs 11,500 a month. It was raised from Rs 10,000 in 2025. If the formula gives less, EOBI pays the minimum.
At what age can I get EOBI pension?
Men at 60 and women at 55, with at least 15 years of insurable employment. A reduced early pension is possible from 55 for men and 50 for women, cut by 0.5% for each month early.
What if I have less than 15 years of EOBI contributions?
At pension age you get an old-age grant instead: one month's average wage for each year of contributions, paid once. A part year of six months or more counts as a full year, so 14 years 6 months reaches the 15 years needed for a pension.
How much EOBI contribution is deducted?
The employee pays 1% and the employer 5% of the minimum wage notified for EOBI, not of your full salary. The contribution record decides the wage used in your pension.
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.