After 18th Amendment, EOBI facing erosion.

The Employees' Old-Age Benefits Institution (EOBI) is unable to collect proper and due contribution from the provinces after the 18th Amendment.

The EOBI had been working to achieve the objective of Article 38(C) of the Constitution by providing compulsory social insurance to retired workers for over 40 years in the shape of old-age pension, survivor's pension, invalidity pension and old-age grant. However, the institution has been facing obstacles in collection ever since the constitutional amendment of 2010 abolished the labour subject from the federal concurrent list.

It is argued that after the 18th Amendment, the EOBI's authority has been compromised to collect contribution from the employers. Taking advantage of the situation, many big registered employers are making their contribution at various and lower rates, some even at 10-year old rates, confided a senior EOBI employee.

The previous government of PML-N raised the minimum wage to Rs15,000 per month but its implementation under the 18th Amendment remained restricted to the federal capital territory. This deprived employees living outside the capital city from their basic and due right.

On the basis of minimum wages the registered employers contribute up to 5 per cent and 1pc contribution is made by the employee towards the pension fund, said the EOBI official.

He further explained that if Rs15,000 as a...