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ISLAMABAD – August 2, 2025: In a significant step toward improving the financial well-being of Pakistan’s labor force, the federal government has approved a 15% increase in Employees’ Old-Age Benefits Institution (EOBI) pensions and announced enhanced marriage and death grants for registered workers.
The new measures, aimed at strengthening social security, are part of the government’s ongoing efforts to offer greater financial relief to the country’s low- and middle-income workers and their families.
15% Increase in EOBI Pension for Retired Workers
The EOBI pension—a crucial lifeline for thousands of retired workers—has been raised by 15%, allowing beneficiaries to receive higher monthly payouts starting immediately. This increment comes as part of a broader social safety net reform to support pensioners amid rising inflation and increasing household costs.
The increase is expected to ease financial pressure on retirees who rely heavily on EOBI payments to meet basic living expenses such as rent, utilities, groceries, and healthcare.
“The pension hike will help senior citizens live with dignity and reduce their dependency,” said a labor rights activist in Karachi. “This is a long-overdue step in the right direction.”
Marriage Grant Enhanced for Worker Families
In addition to pension reforms, the marriage grant for children of registered workers has also been enhanced. The increased grant aims to lessen the financial burden many families face during weddings—especially those from underprivileged backgrounds who struggle to cover expenses such as dowry, venue, food, and attire.
This initiative, officials say, is designed to empower working-class households, enabling them to celebrate important family milestones without falling into debt.
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A labor ministry spokesperson noted that the grant will be applicable per child’s wedding, helping families manage the costs of marriage-related events more sustainably.
Death Grant Also Raised to Support Bereaved Families
In another vital move, the government has increased the death grant provided to the families of deceased workers. This one-time financial assistance is given to help cover funeral costs and other immediate expenses following a worker’s death.
The raised amount is intended to help surviving spouses and dependents navigate the difficult days following a loss, providing emergency relief and dignity in times of grief.
Labor unions and welfare groups have welcomed the decision, describing it as a meaningful step toward improving worker support systems in the country.
Political Support and Ministry Commitment
Mustafa Malik, Central Information Secretary of PML-Q and Focal Person for the Ministry of Overseas Pakistanis, confirmed the development and expressed optimism about the government’s direction in worker welfare.
“These increases reflect our resolve to protect the working class,” Malik said in a public statement. “We are taking practical and people-focused steps to expand social safety nets and provide real financial security to workers.”
He added that further reforms are being considered in consultation with labor representatives, aimed at modernizing the EOBI system, improving accessibility, and ensuring transparency in disbursements.
Part of a Broader Social Protection Strategy
The increases in pensions and grants come as part of a wider government strategy to uplift vulnerable segments of society. Over the past year, authorities have introduced multiple relief programs—including food subsidies, healthcare access, and employment insurance—for the underprivileged and daily wage earners.
Economists believe these reforms, while incremental, play a crucial role in strengthening the country’s social contract and reducing inequality.
Public Reception and Future Outlook
Initial public reactions to the announcement have been largely positive, with beneficiaries and advocacy groups welcoming the changes as long overdue. However, they have also called on the government to adjust benefits regularly in line with inflation, ensure efficient delivery mechanisms, and eliminate bureaucratic hurdles.
Labor experts also recommend investing in digitization and awareness campaigns to help more workers enroll in the EOBI system and access benefits easily.
Conclusion
The government’s decision to increase EOBI pensions by 15% and boost marriage and death grants marks a significant advancement in Pakistan’s labor welfare policies. These reforms underscore a renewed commitment to ensuring that the country’s working class is not left behind as the economy modernizes.
With consistent implementation and broader outreach, such initiatives have the potential to bring meaningful and lasting relief to millions of workers and their families across Pakistan.
