The Federal Constitutional Court of Pakistan has ordered the provision of old-age pensions to employees of private institutions, directing the Employees’ Old-Age Benefits Institution to pay monthly pensions to all eligible petitioners. The court clarified that private employees who have completed 14 and a half years of service, even if under 15 years, are entitled to receive a pension, with six months or more of service counted as a full year under the law.
A three-member bench led by Chief Justice Ameenuddin Khan issued the ruling, dismissing all appeals filed by the EOBI and upholding the Lahore High Court’s decisions of 2024 and 2025. The court emphasized that the schedule is an essential part of the law and that EOBI’s 2022 circular cannot override employees’ legal rights to receive pensions.
The court noted that denying pensions through strict interpretation of welfare laws constitutes an injustice. Employees with more than 14 and a half years of service will be considered to have completed 15 years, ensuring they are eligible for pension benefits. The ruling also affirmed that the principle of rounding off service years will apply in pension calculations, strengthening the rights of private-sector employees under Pakistan’s old-age benefits framework.
