LAHORE: Under standard operating procedures, the Employees Old-Age Benefits Institute (EOBI ) has been directed to settle all claims within 45 days of submission.

This was stated by EOBI Deputy Director General Operations Muhammad Amin at an interactive session with the media here on Monday.

He said EOBI Chairman Dr Jawaid A Sheikh has directed strict monitoring to ensure that no claim remains pending beyond 45 days without valid reason. Regional offices have been instructed to report and prevent unnecessary delays.

Contribution structure, claim settlement timeline, and pension challenges were discussed at the session.

Under the law governing EOBI, one per cent of an employee’s salary is deducted as contribution, while employers are also required to pay their share, Mr Amin said.

He said employers do express concerns that in addition to EOBI contributions, social security payments and other benefits, the overall cost of production increases, making it difficult to compete in the market.

It was acknowledged that delays do occur in some cases due to different issues, including closure of private sector institutions, lack of records, and difficulties in verifying employment history, particularly for workers who have served in the past.

“Rejection of claims should be treated as a last resort, and staff is instructed to make efforts to verify cases through alternative means, including contacting former colleagues or witnesses,” he said.

The official said committees were being formed to review pending and disputed cases, particularly those involving longer service but minimum pension awards.

According to the EOBI official, institution currently holds a fund of approximately Rs700 billion, and pension payments are determined based on actuarial evaluations to ensure long-term sustainability.

Participants also pointed out that the current minimum pension of Rs11,500 is insufficient in the prevailing inflationary environment.

The official responded that pension increase was subject to financial viability and required formal approval through budgetary processes.

He shared that EOBI’s administrative expense ratio was around 1.98 per cent, which was lower than typical international benchmarks.

The institution currently serves approximately 850,000 beneficiaries, with over 12.5 million registered people and around 50,000 new pensioners added annually.

Published in Dawn, April 7th, 2026