The year 2020 is bringing some good news for pensioners. The government has decided to increase the Employees Old-Age Benefits Institution pension from Rs6,500 to Rs8,500 from January 1.

“Our government has increased the EOBI pension by 62% from Rs5,250 to Rs8,500 within a year,” Prime Minister Imran Khan tweeted. “This helps us provide pensioners security in their post-retirement years.”

Our govt has increased the EOBI old-age pension by 62% from Rs.5250 to Rs.8500 within a year.This helps us provide pensioners’ security in their post-retirement yrs. Much of this contribution comes from improving the Institution itself. Another step towards Madina Ki Riyasat — Imran Khan (@ImranKhanPTI) December 12, 2019

He credited the move to the improvement of the EOBI institution and called this “another step towards the State of Madina”. PM Khan has often regarded the world’s first welfare state as a model for his government.

Special Assistant to the Prime Minister on Information Dr Firdous Ashiq Awan also took to Twitter to announce the news.

The increase from Rs6,500 to Rs8,500 in the EOBI pensions is proof of Prime Minister Imran Khan’s efforts for the poor, she tweeted. She called this a step towards becoming a welfare state.

ای او بی آئی پینشنرز کی پینشن میں 6500روپے سے 8500روپے کا اضافہ وزیر اعظم عمران خان کے غریبوں اور پسے ہوئے طبقات کیلئے احساس کا مظہر ہے۔ یہ ریاست مدینہ کی طرز پر فلاحی ریاست کے قیام کی جانب ایک عملی اقدام ہے ۔ — Firdous Ashiq Awan (@Dr_FirdousPTI) December 12, 2019

“Protection and welfare of the poor segments of society are the objectives of PM Khan,” she added.

There was, however, a difference in the change of pensions in the statements made by PM Khan and Dr Awan.

The EOBI pensions have increased for the second time since PTI assumed power in August 2018. The first increase came into effect on January 1, 2019, where the pensions increased from Rs5,520 to Rs6,500. The second increase from Rs6,500 to Rs8,500 has been announced but will come in effect from 2020.

This proves that the overall increase in pensions ever since the PTI came to power is 62%, whereas the increase for the year 2019-2020 is 30%.

“…second jump within first year of ministry,” tweeted Special Assistant to the Prime Minister for Overseas Pakistani and Human Resource Development Sayed Zulfikar Bukhari. This time we‘ve not burdened the federal government but have managed it by increasing our own revenue, he said.

I couldnt be more thankful for guidance from PM @ImranKhanPTI. Today as promised #EOBI pension has been inc by 62%-2nd jump within 1yr of ministry.This time we‘ve not burdened Fed Gov but have managed it by increasing our own revenue.Mubarak to pensioners #MadinaKiRiyasat #Ehsaas https://t.co/K1MKZPhUAn — Sayed Z Bukhari (@sayedzbukhari) December 12, 2019

Addressing an inauguration ceremony on Thursday, Bukhari said, “We are intending to raise this amount to Rs15,000 by the end of our tenure (2023).”

What is the EOBI?

The EOBI was formed in 1976 under the Employee Old-Age Beneficts Act, 1976 to provide compulsory social insurance primarily to retired individuals. The Act aims to fulfill the objective of Article 38 (C) (developing a socialised state) of the Constitution.

The organisation is self-funded. A contribution equal to 5% of the minimum wage rate has to be paid by employers of all industrial and commercial organisations where the EOB Act is applicable. While a contribution equal to 1% of minimum wages has to be paid by the employees of said organisations.

It ensures pensions that provide for old-age, people’s heirs, and disabilities.

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