EOBI Pension Calculator

Estimate your EOBI old-age pension from your insurable service and average wage

EOBI uses your average wages during insurable employment, up to the notified minimum wage ceiling (Rs 40,000 in most provinces).

Pension = Average Monthly Wage × Insurable Years ÷ 50
subject to a minimum pension floor of Rs 11,500/month, and only once you reach 15 years of insurable service.

60 for men, 55 for women.

This covers old-age pension only. Invalidity pension, survivor's pension, and the old-age grant (for those with under 15 years of service) follow different formulas and eligibility rules not covered here — confirm those directly with EOBI.

Frequently Asked Questions

How many years do I need to qualify for EOBI old-age pension?
You need at least 15 years (180 months) of insurable employment to qualify for the old-age pension. If you have less than that, EOBI's old-age grant may apply instead — a different, lump-sum benefit not covered by this calculator.
Is EOBI contribution based on my actual salary?
No. EOBI contributions are calculated on the federal minimum wage, not your actual salary — currently Rs 40,000/month in Punjab, Sindh, KP, and ICT (Balochistan continues on the prior Rs 37,000 minimum wage). This is true regardless of how much more than the minimum wage you actually earn.
What if the formula gives a pension below the minimum?
EOBI guarantees a minimum pension floor — currently Rs 11,500/month — for anyone who meets the 15-year eligibility requirement, even if the formula (average wage × insurable years ÷ 50) produces a lower number.

The Employees' Old-Age Benefits Institution (EOBI) pays a monthly pension to formally-employed workers who've contributed for enough insurable years and reached retirement age — a modest, formula-based benefit distinct from any private pension or provident fund an employer might separately offer.

How the EOBI pension formula works

Your pension is calculated from your average monthly wage over your insurable employment and your total insurable years, divided by a fixed pension divisor set by EOBI — but the result is subject to a minimum pension floor, meaning even a low formula result is topped up to the guaranteed minimum if you meet the minimum qualifying years. You need a minimum number of insurable years of contribution to qualify at all, and the retirement age differs between men and women under current rules.

A worked example

A worker who contributed for exactly the minimum qualifying insurable years at a modest average wage will typically receive close to the minimum guaranteed pension, since the formula-based amount at low wage levels often falls below that floor — while someone with many more insurable years at a higher average wage sees the formula produce a genuinely higher pension above the minimum.

How this connects to your other retirement planning

EOBI's 1% employee / 5% employer contribution is a small, mandatory, government-run scheme — it is not the same as any employer provident fund, which is a separate, employer-specific retirement savings arrangement with its own (often much larger) contribution rates. Don't mistake your EOBI contribution line on a payslip (see the Salary Calculator) for your total retirement savings — for most formally employed people, EOBI provides a safety-net minimum, not a comfortable standalone retirement income, and should be planned around rather than relied on alone.

Common mistakes

Workers sometimes assume their EOBI pension will scale proportionally with their actual final salary, when in reality it's based on the contribution base (tied to minimum wage figures, not your real salary) and average wage over your insurable employment specifically — years worked informally, or for an employer who didn't properly register and contribute on your behalf, don't count toward your insurable years even if you were genuinely employed during that time.

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