EOBI provides a minimum pension of Rs. 8500 per month to its pensioners. This pension rate may be higher depending upon the minimum wage at which the employer is paying EOBI contribution. Since the government has set the minimum wage at Rs. 25000, hence you can easily find the minimum EOBI pension. You have to put this minimum wage in the EOBI pension formula which is as following:
(Average Minimum Monthly Wages x No. of years of Insurable Employment)/50
In the first step, multiply the minimum monthly wages with the number of insurable employment. For example, if a worker has worked for 20 years, then multiply 20 with 25000. We get the figure 500,000. Now in the next step, divide this figure with 50. Hence, 500,000/50 is equal to 10,000. Hence a worker whose contribution was paid at the minimum wage Rs. 25000 for 20 years will receive minimum EOBI pension of Rs. 10,000 according to EOBI Pension Formula.
But since most employers pay EOBI at old minimum wage rates, hence the EOBI formula pension is lower then EOBI minimum pension. If any employer is paying EOBI contribution at old minimum wage rate, its employees will not receive a higher EOBI pension as a result.
For the easiness of employees, we have provided this formula in excel sheet. You can easily change the years of insurable employment, and the minimum wage at which the employer is paying contribution. You will easily find the EOBI pension formula and claim the same if you want.
If you calculate the pension and your pension found to be less then the minimum pension set by Employees Old Age Benefits Institution, then your pension will be the minimum pension set by EOBI. But if your pension is higher according to formula, you will receive Formula pension.