EOBI Contribution has increased to Rs. 1920 after ICT announces increase in Minimum Wage of employees. EOBI Contribution refers to the amount of money that must be paid to the Employees’ Old Age Benefits Institution by the employer or the Federal Government on behalf of an Insured Person in accordance with EOBI Act 1976.
EOBI contribution payment is mandatory on all private entities which have 10 or more workers, while it is not mandatory but voluntary on private businesses having less than 10 workers. This payment has to be done in any Bank Alfalah’s branch through EOBI’s PR-03 Voucher. Moreover, the PR-03 Voucher has to be electronically generated from the EOBI’s Facilitation System.
The payment of contribution entitles the workers to EOBI benefits which include Old Age Pension, Old Age Grant, Invalidity Pension and Survivor Pension. A minimum 15 years EOBI contribution is necessary for Old Age Pension. In order to check the contribution details, please click here or send your CNIC in comment section. We will send your contribution details on your email address as soon as possible. Furthermore, if you don’t find your details, contact your employer to immediately start your EOBI contribution for your safety.
Latest News about EOBI Contribution
The updated Contribution Rate is now 1920 Rupees per employee for all the employers in the whole country. The employer has to contribute Rs. 1600 while the employee has to contribution Rs. 320 per month. Moreover, the manual PR 03 Vouchers are not usable as EOBI Contribution payment slip. Now the employers will have to login to the Facilitation System in EOBI website, and print out the computerized voucher, which will serve as EOBI Contribution Payment Slip.
Old Contribution Rate
The old Contribution rate was 1500 uptil 30th July 2023.
Determination of EOBI Contribution
The minimum wage set by the Federal Government results in changes in the Contribution. Hence any change in the minimum wages leads to the change in EOBI Contribution. This is because the Federal Government has increased minimum wage rate to Rs. 32000 in July 2023.
According to EOBI Act 1976, 5 percent of minimum wage is contributed by the employer for each employee, and 1 percent of minimum wage is contributed by the employee from his own salary. This leads to the contribution rate of Rs. 1600 for Employer and Rs. 320 for Employee respectively. Hence a total of Rs. 1920 is due on the behalf of each employee per month.
Calculation of EOBI Contribution
You can use the Excel Sheet below to calculate the Total Contribution due on an employer for any number of months.
History of Increase in EOBI Contribution
|Year||Minimum Wage||Employer Share (5%)||Employee Share (1%)||Total Contribution|
Who is ‘Insured Person’?
An “insured person” is a worker who is currently or was previously in insurable employment. “Insurable employment” means employment of an individual under a service agreement or apprenticeship, whether written or oral, express or implied, about which contributions are due to Employees’ Old Age Benefits by the employer or the Federal Government under this Act.
What Happens When an Employer Doesn’t Pay EOBI Contribution?
If the employer is late with either the deduction or payment of the employee’s contribution, the amount due is to be increased by 2% of that amount for each month or fraction of a month for which the amount is late.
Provided that the total increase will not go over 50% of the original contribution. Hence no late fee more than 50 percent can be levelled on an amount due.
What is the Last Date for depositing the Contribution?
The last date for depositing a month’s contribution is the 15th of the next month. If not paid before that, a 2 percent penalty is levied on the amount payable for every month. Additionally, this 2 percent increase will continue for the coming months till the total late fee reaches 50% of the amount payable.
How to Generate Computerized EOBI Contribution Payment Slip?
For generation of Contribution Payment Slip, it is important to have a Login ID for every employer. In order to learn this, we have published a complete article on how to setup EOBI Login ID setup, click on the link and follow the steps for creation of EOBI Login ID in five simple steps.
Where Does the Contribution Go?
The contributions are deposited in the Collection Accounts of EOBI. After the recent digitization, the contributions can now be seen in the contribution details of the individuals as the manual payment slips are being phased out.
Does EOBI keep a Record of the Contributions paid?
Yes. In fact the contribution details are uploaded as soon as the concerned officer receives the details of contribution payment from the bank. After uploading, this data is available in the intranet of EOBI for the employer concerned. If the employer has paid the contribution on the slip generated from EOBI website, then all the information of the employees will also be updated every month.
Payment Through Bank Alfalah’s Online Banking
Bank Alfalah has digitized the contribution payment procedure. Now manual PR 03 Payment slips are no more in use and only computerized payment slips will be acceptable. This will ensure the updated computerized record of every individual’s contribution.
Through Internet Banking at Bank Alfalah, you can now contribute directly to the EOBI without any sort of difficulty.
The process is very simple.
- Log on to Bank Alfalah’s Internet Banking
- Select Services >> Payments >> Other >> EOBI
- Enter Receipt Number
- Pay at once!