Pension Calculator Pakistan
Calculate your pension benefits as a government employee, EOBI member, or private sector retiree. Plan your retirement income with accurate Pakistani formulas.
How to use this calculator
- Select your pension type: Government, EOBI, or Private
- Enter your last drawn monthly salary
- Enter total years of service
- Click Calculate to see monthly pension and gratuity
Real-world examples
Frequently asked questions
How is government pension calculated in Pakistan?
Government pension formula: Pension = Last Salary × Years of Service × 7/300. Maximum service counted is 30 years. After 30 years, you get 70% of last drawn salary as monthly pension.
What is the minimum EOBI pension?
Minimum EOBI pension is currently Rs. 10,000/month. To be eligible, you need at least 15 years of insurable employment with EOBI contributions paid. Pension starts at age 60 for men and 55 for women.
What is commutation in pension?
Commutation allows pensioners to take a lump sum amount in exchange for reducing their monthly pension. Government employees can commute up to 35% of pension. The commuted amount is calculated using a commutation table based on age.
Can family receive pension after pensioner dies?
Yes, family pension is paid to spouse and dependents. Government family pension is 75% of the pensioner's pension. EOBI also pays survivor pension to widow/widower and dependent children.
When can I retire and start pension in Pakistan?
Government employees: Voluntary retirement after 25 years of service or compulsory at 60. EOBI pension starts at 60 (male)/55 (female). Some private companies allow earlier retirement with reduced benefits.
Are pensions taxable in Pakistan?
Government pensions are tax-exempt. EOBI pension is tax-exempt. Private pension fund payouts may be partially taxable depending on the fund structure. VPS (Voluntary Pension System) withdrawals after retirement are tax-exempt.
What is gratuity vs pension?
Gratuity is a one-time lump sum payment at retirement (typically 1 month salary × years of service). Pension is monthly payment for life. Some employers give both, others give only one. Government employees get both.
Should I invest in VPS for retirement?
VPS (Voluntary Pension System) is highly recommended. Tax credit on contributions, choice of conservative/balanced/aggressive funds, accumulates significantly over 20-30 years. Major providers: Atlas, Al Meezan, NBP, UBL, MCB Arif Habib.