EOBI Contribution Rates & Calculation 2026 – Complete Guide for Employers and Employees
The Employees’ Old-Age Benefits Institution (EOBI) ensures financial security for workers in Pakistan by providing pensions and benefits to eligible employees. For 2026, understanding EOBI contribution rates and the calculation formula is essential for both employers and employees to ensure compliance and proper benefit allocation.
EOBI Contribution Rates 2026
EOBI contributions are shared between employers and employees. The 2026 contribution structure is as follows:
| Contributor | Monthly Contribution | Percentage of Wages |
|---|---|---|
| Employer | PKR 550 | 5% |
| Employee | PKR 75 | 1% |
| Total | PKR 625 | 6% |
Note: Contributions are based on the employee’s minimum wage, and employers must deduct the employee’s share before submitting the total to EOBI.
How to Calculate EOBI Contributions
The formula for EOBI contributions is straightforward:
Employee Contribution = 1% of monthly wages
Employer Contribution = 5% of monthly wages (subject to minimum PKR 550)
Total Contribution = Employee + Employer
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Example:
If an employee earns PKR 30,000 per month:
- Employee share = 30,000 × 1% = PKR 300
- Employer share = 30,000 × 5% = PKR 1,500
- Total = PKR 1,800
The total contribution is then submitted to EOBI via the official portal or authorized banks.
FAQs
Q1: Who is required to contribute to EOBI?
All registered employers with 5 or more employees in the private sector.
Q2: Can employees opt out?
No, EOBI contributions are mandatory for registered employees.
Q3: How often should contributions be submitted?
Monthly, before the 15th of the following month.
Conclusion
Understanding EOBI contribution rates and calculation ensures timely pension benefits and compliance with labor laws. Both employers and employees should stay updated on 2026 rates to avoid penalties and secure future financial protection.
