At retirement age, claiming a pension looks like a fussy task. Luckily, claiming pensions under EOBI is a smooth process. If you do not know about EOBI or its process, worry not relatorspk.com has got you covered. But first, let’s learn about EOBI, how the funds are contributed to the employees and how it benefits those who retirees. Most importantly, find a comprehensive guide on the EOBI registration process. Also read our blog Need For Sustainable Green Buildings in Pakistan.
What is EOBI?
EOBI is an abbreviation for The Employees Old Age Benefits Institution. The organization ensures the collection of contributions from employers and employees. Furthermore, it makes the identification and registration of employers easy and transparent.
A person who registers with the EOBI fund remains part of it for as long as they work with the registered employer.
Once you switch jobs and join another registered employer, you will be included in the fund again. The pension can be claimed when the registered person cannot continue to work for reasons like;
- Invalidity (for instance, handicapped in an accident or due to any medical issue)
- Old Age &
- Next of kin can receive the pension in case of the demise of the registered person.
EOBI Registration Process
Both employees and employers need to be registered in the database to get benefits from the fund. Let’s have a look at how to register for EOBI funds.
1. Process of Employer Registration with EOBI
According to the law, every employer should register with EOBI within thirty days of becoming eligible for EOBI. After registration, the company has to list the employees’ details, ensure each of them gets registered, and provide them with registration cards issued by EOBI.
2. The Employee Registration Process with EOBI
Most registered organizations register employees on their own. Employers and Employees can view detailed registration instructions on the EOBI website.
How is the EOBI Fund Beneficial?
The EOBI funds are a pension that allows all registered people to get benefits at retirement. There are 4 main types of benefits from EOBI:
1. Old Age pension
It is offered after the retirement of the insured person only if they have completed 15 years of service. The pension is payable for a maximum of 6 months before the claim. It is pertinent to note here that the retirement age for men is 60 and 55 for women.
2. Invalidity pension
If the registered person becomes permanently disabled, they are given an invalidity pension. However, the person is only eligible for the pension if the earning drops to two third of what they were getting before the disability. Furthermore, the person should have 15 years of insurable employment overall. Based on medical reports, the pension is renewed every 6 months and continues for 5 years.
3. Survivors’ pension
The pension is issued to the next of kin in case of death. Aged parents and the young widow is considered eligible for this type of pension. According to the rules, parents of unmarried persons can get a pension for 5 years after the individual’s death; a married person or widow can get lifelong support from the pension.
4. Old-Age Grant
The grant is given to the old person who is retired but does not meet the minimum criteria to claim the pension. The grant is paid once in full, based on the month’s average salary and the years they spent in insurable employment.
5. EOBI Rates
The EOBI pension rate is calculated on the following formula:
- Pension = [Average Monthly Wages] x [Number of Years Spent in Insurable Service] / 50
How to Claim EOBI Funds?
Applying to claim for EOBI funds is quite easy. Here is how you can do it
- Open your web browser and access the official website of EOBI.
- Click on the Insured Person/ Employee details tab.
- You will be redirected to the Person details page. Here enter the EOBI login detail. You have three options here; either enter your EOBI registration number, National Identity Card Number or old NIC number to log in.
- Check the details and send the required documents to the nearest regional EOBI office.
- The organization will verify the documents and send you the “Claim Form.”
- Please complete the required details and return them to the EOBI regional office.
- The claim process will start after that, and once it is completed, you will be given the pension card in 30 days.
- After the claim, your pension will be sent to the bank of your choice.
How to Check EOBI Claim Status?
You can check EOBI pension online by accessing official website of EOBI Information. If you do not know your EOBI registration number, enter your NIC number, and in the details, you can check your EOBI registration number.
Let’s Wrap Up
That’s all for now! We hope it offers a comprehensive picture of how EOBI benefits individuals and how to register and claim a pension in your old age.