The Ministry of Overseas Pakistanis and Human Resource Development has increased pension rates for Pakistani citizens, a move that will uplift the spirits of retirees across the country.
According to a circular issued by the Employees’ Old-Age Benefits Institution (EOBI) under the Ministry of Human Resource Development, the minimum pension rate has been increased from Rs. 8,500 to Rs. 10,000 every month, with effect from 1 July 2023.
Additionally, existing pensioners who were granted the formula pension by the end of June 2023 will see a 17% rise in their current rates from July onward.
To put this in perspective, if someone was earlier receiving a formula pension of Rs. 10,000, they would now receive an additional Rs. 1,700, taking their total monthly pension to Rs. 11,700.
However, the 17% increment will not be applicable to those who will be awarded the formula pension starting from July 2023 or after. These new recipients will receive the base amount as per the usual schedule.
It’s also essential to understand the specifics of pensioners receiving a reduced pension. The circular clarifies that if any pensioner is drawing a decreased amount due to their age being below the stipulated 60 years (or 55 in the case of women), they will be eligible for the revised minimum pension of Rs. 10,000.
However, this will be reduced by half a percent for each month by which their age falls short of the benchmark. For those drawing reduced formula pensions as of 30 June 2023, they will also benefit from the 17% increase.
Source: Pro Pakistani
