Pensioners set to benefit from long-awaited increase
Pakistan’s pensioners registered under the Employees’ Old-Age Benefits Institution (EOBI) will begin receiving higher pensions from 1 September 2025, along with backdated payments covering the last eight months.
According to official sources, the government has decided to implement the pension increase announced earlier this year. The adjustment raises the minimum monthly pension from Rs 10,000 to Rs 11,500, representing a 15 percent increase. All dues dating back to January 2025 will be cleared in the September payment cycle.
No extra paperwork required
Officials told local broadcaster Geo News that the arrears and revised pension will automatically be included in the September disbursement. Pensioners will not need to file new applications or complete any additional paperwork.
The clarification has been welcomed by beneficiaries, many of whom had expressed concern about whether they would need to go through new verification processes. The government assured that the payments will be credited directly into their accounts or through the usual distribution channels.
Government decision brings long-awaited relief
The pension increase was originally approved by the federal cabinet earlier in 2025. However, the implementation had been delayed due to administrative and financial adjustments within the EOBI system.
The new measure is expected to provide much-needed financial relief to hundreds of thousands of retired workers who depend on EOBI pensions as their primary source of income. Rising inflation in Pakistan has severely eroded the purchasing power of fixed-income groups, particularly pensioners.
According to Pakistan Bureau of Statistics (PBS), consumer inflation averaged 11.8 percent in the first half of 2025, with essential commodities such as food, fuel, and medicines experiencing even sharper increases. For many elderly citizens, a Rs 1,500 increase could mean the ability to meet basic daily expenses.
Background: What is EOBI?
The Employees’ Old-Age Benefits Institution (EOBI) is Pakistan’s national pension scheme for private-sector employees. It was established in 1976 to provide financial security to workers upon retirement, as well as survivor benefits to dependents in case of death.
Employers and employees contribute jointly to the fund during the employee’s working years. In return, retirees receive a lifelong monthly pension once they reach the official retirement age, which is 60 years for men and 55 years for women.
Currently, more than 400,000 pensioners are registered under EOBI, according to official figures. The minimum pension has been revised several times in recent years — rising from Rs 3,600 in 2013 to Rs 8,500 in 2019, Rs 10,000 in 2020, and now Rs 11,500 in 2025.
Pensioners welcome the move, but concerns remain
While the increase has been welcomed, pensioners’ associations argue that the new rate is still far from adequate given Pakistan’s cost of living. Labour rights groups have repeatedly urged the government to set the minimum EOBI pension at Rs 20,000 per month, which they argue is closer to a living wage in urban areas.
Social security experts also warn that Pakistan’s pension system faces long-term sustainability challenges. The EOBI fund relies heavily on contributions from employers, and with widespread underreporting of workers and limited enforcement, the fund struggles to expand its base.
Looking ahead
For now, the decision offers immediate relief to elderly citizens awaiting the government’s promise. From September onward, beneficiaries will receive the enhanced monthly pension of Rs 11,500, plus a lump-sum arrears payment covering the months from January to August 2025.
The move underscores the government’s attempt to balance fiscal pressures with the urgent needs of vulnerable populations. However, whether future reforms will bring pensions closer to a living wage remains an open question.
