Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Karachi, 74700
Phone: (021)32727266
(021)32729770
Email: Info@smyaqoob.com
Website: www.smyaqoob.com
Date: 28-06-2022
Circular Number: C-198
Employees Old Age Pension In Less Than 15 Years Of Contribution
- For decades, the Employees Old Age Benefits Institution (EOBI) has rejected the pension of the insured employees of whom contributions have been paid by the employer for less than 15 years and resorted into paying them one time EOB grant u/s 22-A of the EOB Act, 1976. In cases of pensions, if contribution has been paid less than 15 years, the Adjudicating Authority EOBI rejected cases of the pension in complaints u/s 33 of the Act and appeals u/s 35 of the Act before the Board of Trustees EOBI. Similarly in High Court in several cases pension is not allowed in less than 15 years of contribution.
- In several Constitution Petitions (Writ Petition No.41/2020 and others) (Aftab Ahmed and other V/S Regional Head/Director, Employees Old-Age Benefits Institution and others), Justice Mohsin Akhtar Kayani of the Islamabad High Court in his Landmark decision dated 24-11-2020 allowed the EOBI pension hold that,
- “The entire scheme of this Section creates the following three groups:
- Firstly, general group under Section 22(1), any person who becomes registered as insurable employee in terms of Section 2(i) of the EOBI Act, 1976 within the age of 18 years till 40 years of age, he has to pay the contributions for 15 years in terms of Section 22(1)(b);
- Secondly, if the employee is over 40 years of age, but less than 45 years of age at the time of his/her registration under Section 2(i) of the Act, he has to pay the contribution for next 07 years; and,
- Thirdly, if an employee is over 45 years of age at the time of his/her registration under Section 2(i) of the Act, he/she has to pay the contributions for the period of 05 years.”
- In simple words an employee is entitled for the EOBI pension:
- If an employee registers in EOBI within 18 years to 40 years of age, they shall have to pay the contribution for 15 years to qualify for pension.
- Similarly if an employee who registers in EOBI is over 40 years of age, but less than 45 years of age they shall have to pay the contribution for the next 07 years to qualify for pension.
- And finally if an employee who registers in EOBI is over 45 years of age, they shall have to pay the contribution for the period of 05 years to qualify for pension.
- EOBI challenged the above decision in Intra Court Appeal before the DB Bench of the Islamabad High Court which was dismissed by order dated 08-11-2021.
- EOBI challenged the above decision on the Intra Court before the Supreme Court of Pakistan (Civil Petitions No. 35, 69, 70, 76, 90, 154 and 591 of 2022) and the Hon’ble Supreme Court of Pakistan dismissed the same by order dated 29-03-2022, therefore, the order of the single bench Islamabad High Court attained its finality.
- All the above-mentioned orders have not been published yet in any case law journal. However, the main order of Justice Mohsin Akhtar Kayani of the Islamabad High Court is available at the web site of Islamabad High Court at the following link:
- Since the High Court of Islamabad has interpreted the provision of sections 22 (1), 22 (2) (i) and 22(2) (ii) EOB Act, 1976 and after the orders of the Supreme Court of Pakistan it has attained the finality, therefore, it is applicable to all the insured personnel under the EOBI whose pensions have/had been rejected by the EOBI and have even been paid the EOB grant but legally they were entitled for the pension under sections 22 (1), 22 (2) (i) and 22(2) (ii) EOB Act 1976.
- Any decision of the Supreme Court and High Court if it is on the question of law or on a principle of law shall be binding as per articles 187, 189 and 201 of the Constitution of Pakistan.
