# EOBI Contribution Calculator 2026-27

Source: Searchable (https://searchable.pk/tools/finance/eobi-calculator)
Type: Calculator
Rates reviewed: 2 Oct 2026
Retrieved: 30 Oct 2026

Work out EOBI contributions for one employee or a whole payroll: employer 5% and employee 1% of the federal minimum wage (Rs 40,700 from July 2026), monthly and per year, plus who must register and when pension starts.

Version 1.0.0. Inputs: Number of employees, Minimum wage used for EOBI, Show.

## Worked example (default inputs)

- Number of employees: 10
- Minimum wage used for EOBI: 40700 PKR / month
- Show: both

**EOBI per month for 10 employees: Rs 24,420**

Per employee: employer Rs 2,035 (5%) and employee Rs 407 (1%) of the Rs 40,700 minimum wage, Rs 2,442 a month, Rs 29,304 a year. With 5 or more employees, registration is mandatory.

### Per employee

- Employer share (5%): Rs 2,035
- Employee share (1%, deducted from salary): Rs 407
- Total per employee per month: Rs 2,442
- Per employee per year: Rs 29,304

### Payroll (10)

- Employer cost per month: Rs 20,350
- Employee deductions per month: Rs 4,070
- Total deposited per month: Rs 24,420
- Total per year: Rs 293,040

## How it is calculated

EOBI (Employees' Old-Age Benefits Institution) is the federal pension scheme for private-sector workers. Under the EOB Act 1976:

- **Employer contribution: 5%** of the minimum wage per insured employee per month (s.9).
- **Employee contribution: 1%** of the minimum wage, deducted from salary (s.9B).
- The base is the **federal minimum wage**, Rs 40,700 from 1 July 2026 under Finance Act 2026, **not** the employee's actual pay.
- Employers with **5 or more employees** must register (many register earlier voluntarily so staff accrue service).
- Pension is payable at **60 (men) / 55 (women)** after at least **15 years** of insurable service. The **minimum pension is Rs 11,500 a month** from 1 January 2025 (raised from Rs 10,000, with formula pensions up 15%); invalidity and survivors' pensions also exist.

Contributions are paid monthly through EOBI's online portal (Facilitation System) by bank challan.

## Frequently asked questions

**Is EOBI calculated on actual salary?**

No. Both shares are percentages of the notified federal minimum wage, so a Rs 300,000 manager and a Rs 40,700 helper cost the employer the same EOBI.

**Who has to register with EOBI?**

Any industrial or commercial establishment with five or more employees. Employers with fewer can register voluntarily.

**How much pension does EOBI pay?**

At least Rs 11,500 a month (the minimum since 1 January 2025) after 15 years of insurable service, from 60 for men and 55 for women. The formula is based on years of service and the wage on which contributions were paid, so longer service pays more.

**Can the employer deduct its 5% from my salary?**

No. Only the 1% employee share may be deducted; the 5% is the employer's own cost. Deducting more is an offence under the Act.

## Sources

- EOBI contribution rates; federal minimum wage Rs 40,700 (Finance Act 2026, from 1 July 2026); minimum pension Rs 11,500 from 1 January 2025 (federal cabinet, reported by Dawn 1 Sep 2025) (EOBI / Ministry of Finance): https://www.eobi.gov.pk/
- Employees' Old-Age Benefits Act 1976, ss.9 and 9B (EOBI)

How to cite: "EOBI Contribution Calculator 2026-27", Searchable, rates reviewed 2 Oct 2026, https://searchable.pk/tools/finance/eobi-calculator