Groktilar It is estimated that the current contributions and return from investment will not be sufficient to cover the benefit payment and administrative expenses by Since there has been no increase in the rate of pension for a long time, the pensioners are frustrated, especially due to unprecedented inflation. One of the major challenge faced by EOBI is low contribution to EOBI resulting in lower contribution compared with wobi liabilities for the beneficiaries. Computerization and administrative reforms are being carried out to reduce the administrative expenses. Amendment of section 22, Act XIV of The declaration so made shall be accepted without any question provided no demand of contributions previously created remains outstanding against such employer.
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A contribution equal to 5pc of the minimum wages is being paid by employers of all industrial and commercial organisations where the EOBI Act is applicable.
Contribution equal to 1pc of minimum wages is paid by the employees of the organisations. Normally, a fixed pension of Rs3, a month is being paid to the workers. Since there has been no increase in the rate of pension for a long time, the pensioners are frustrated, especially due to unprecedented inflation.
To increase its financial resources, the EOBI attempted to purchase cheaper land with the hope its prices would increase and the organisation will be benefited. However, corruption in the deal has eroded away all the hopes of profits. It is said that the main culprit, who is responsible for the alleged corruption in the deal, is absconding along with the money. The pensioners are still receiving Rs3, a month. In the wake of inflation, it is not less than a joke to expect an old couple to survive with Rs3, a month.
The highups of the EOBI should increase the pension amount to a reasonable level so that old couples may survive honourably. Akhter Nasimi.
Employees Old-Age Benefits Institution
EOBI ACT 1976