Islamabad: Good news for retired employees, Federal Minister Chaudhry Salik Hussain has announced that the cabinet has approved a 15 percent increase in EOBI pension. This decision will be implemented from September 1 and pensioners will also get arrears.
According to the institution, Rs 10 billion will be released every month in terms of pension, while people with long service will now get a pension of more than Rs 30,000 per month.
The federal government has taken another important step by setting up a special committee to bring domestic workers and informal sector workers under the ambit of EOBI. A proposal to include agricultural workers is also under consideration.
This increase will certainly provide temporary relief, but the reality is that a 15 percent increase in the current inflation rate seems insufficient. Experts say that this benefit will not prove to be long-lasting without sustainable reforms and proper management of pension funds. The government should review the pension on an annual basis in line with inflation.
