How is the EOBI pension calculated?

EOBI pays a defined monthly pension after at least 15 years of insured service. The formula is roughly the average insured wage multiplied by insured years, divided by 50, subject to a statutory minimum pension. EOBI contributions are pegged to the minimum wage, not your full salary, so the pension is modest.

What is the difference between EOBI and VPS?

EOBI is a mandatory defined-benefit scheme for registered private-sector workers, funded by employer (5 percent) and employee (1 percent) contributions on the minimum wage. The Voluntary Pension System (VPS), regulated by the SECP, is a defined-contribution fund you top up yourself, which compounds and converts to income at retirement.

Why does the EOBI pension show zero sometimes?

EOBI requires a minimum of 15 years of insured service to qualify for a pension. If your years until retirement are fewer than 15, the tool shows a zero EOBI pension because you would not yet meet the qualifying threshold.

Does this cover government employees?

No. Government employees are covered by the General Provident Fund (GPF) and separate civil-service pension rules, not EOBI. This calculator targets private-sector workers combining EOBI with a voluntary VPS fund.

Are VPS returns guaranteed?

No. VPS funds invest in equity, debt and money-market instruments, and returns vary year to year. The expected return you enter is an assumption, not a promise. Treat the projection as a planning estimate, not financial advice.

Pakistan Pension & Retirement Calculator

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A Pakistan pension and retirement calculator that projects your monthly income at retirement from the two pillars most private-sector workers rely on: the mandatory EOBI defined-benefit pension and a voluntary VPS defined-contribution fund.

How it works

The tool models each pillar separately and adds them.

EOBI pays a formula pension after 15+ years of insured service:

eobiPension = (insuredWage * insuredYears) / 50
            then floored at the statutory minimum EOBI pension

Because EOBI contributions (employer 5 percent, employee 1 percent) are pegged to the statutory minimum wage rather than your actual salary, the resulting pension is deliberately modest.

VPS is a defined-contribution fund. Your monthly contribution compounds at an assumed return, and the contribution itself grows each year:

each month:  balance = balance * (1 + monthlyReturn) + contribution
each year:   contribution *= (1 + annualGrowth)
at retirement: monthlyIncome = (fund * drawdownRate) / 12

Tips and notes

EOBI alone rarely funds a comfortable retirement, which is why a VPS top-up matters: even a moderate monthly contribution compounding over 25 to 30 years can dwarf the EOBI pension. The drawdown rate converts your accumulated fund into a sustainable monthly income — a lower rate makes the money last longer.

This is an estimate. EOBI rules, the minimum wage and the statutory minimum pension change over time, government employees follow GPF rules instead, and VPS returns are not guaranteed. All figures are computed locally in your browser and are not financial advice.