Q. What is the Employees' Old-Age Benefits Institution (EOBI), and is it mandatory for employers to register employees?
The Employees' Old-Age Benefits Institution (EOBI) provides retirement, pension, and other benefits to workers. Under the EOBI Act, 1976, employers must register employees who are earning above the minimum wage threshold. Registration is mandatory for both formal sector employers and workers.
Q. What benefits are provided through EOBI contributions, and when can employees claim these benefits?
Employees contribute to EOBI to receive benefits such as pension, old-age grants, widow/disabled pensions, and funeral grants. According to Section 5 of the EOBI Act, 1976, employees are eligible for these benefits upon reaching the age of 60 years or if they become permanently disabled.
Q. What is the Social Security scheme in Pakistan, and what benefits does it offer to employees?
The Social Security Scheme is managed by provincial social security institutions (like EOBI). It provides benefits like medical care, sickness benefits, work injury benefits, and maternity benefits. These benefits are accessible to workers employed in regulated sectors under the Social Security Ordinance, 1965.
Q. Are employers required to contribute to both EOBI and provincial Social Security schemes in Pakistan?
Yes, employers are legally required to contribute to both EOBI (for pension and old-age benefits) and the provincial social security scheme (for medical and other benefits) as per the Social Security Ordinance, 1965. Employers must make contributions on behalf of their employees to both systems.
Q. Does Pakistan’s labor law require employers to provide private health insurance or medical coverage for employees?
While EOBI and Social Security cover basic medical needs, private health insurance is not legally mandated under federal law. However, employers in certain sectors may offer private medical insurance or health benefits as part of their employment contract or company policy.
Q. What is a provident fund, and is it compulsory for employers to offer it to employees in Pakistan?
A provident fund is a savings scheme that requires both employer and employee contributions. Under the Employees' Provident Funds (Act, 1965), employers are required to offer this to employees in certain organizations. This fund is intended for retirement benefits and is mandatory for employees in qualifying sectors.
Q. What is gratuity, and who is eligible to receive it under Pakistan labor law?
Gratuity is a lump sum payment made to employees upon termination or retirement after serving a certain number of years. Under Section 10 of the Payment of Gratuity Act, 1972, employees who have worked for 5 years or more are entitled to gratuity, typically calculated as one month’s salary for each year of service.
Q. Are employers in Pakistan required to share profits with employees or provide bonuses?
Yes, under the Workers’ Profit Participation Fund Act, 1968, certain employers are required to share profits with their employees, typically 5% of the company’s net profits. Additionally, employers may offer bonuses at their discretion, but they are not mandatory unless specified by company policy or union agreements.
Q. What compensation is provided to workers who suffer from work-related accidents or disabilities in Pakistan?
Under the Workmen’s Compensation Act, 1923, employers must compensate employees for injuries, disabilities, or death caused by work-related accidents. Employees are entitled to medical benefits, compensation for permanent disability, and funeral expenses if the injury results in death.
Q. What workplace welfare facilities must employers provide under Pakistan labor law?
Employers must provide basic welfare facilities such as clean drinking water, restrooms, first aid kits, and childcare facilities for certain workplaces, especially where women work. The Factories Act, 1934 and Shops and Establishments Ordinance, 1965 mandate these provisions to ensure employees’ health and safety.
Q. Are there special benefits for female employees, such as nursing breaks or safe transportation?
Yes, under the Maternity Benefit Ordinance, 1958, female employees are entitled to nursing breaks for up to one year after childbirth. Employers must also provide safe transportation for women working late hours, especially in factories and hazardous workplaces.
Q. Are employers required by law to hire persons with disabilities, and are there special accommodations or benefits?
Under the Disability Employment Ordinance, 1981, employers with more than 100 employees are required to hire persons with disabilities. Employers must also make reasonable accommodations for these workers, such as accessible workplaces and adjusted working hours. Special benefits may include government subsidies or tax exemptions for companies employing disabled individuals.
