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Ref. No. PHMA/Cir-008/2012

Dated: 16th January, 2012



Being circulated to all members for their awareness with regards to issues relating to EOBI.


Thanks & Best Regards,


Yunus Bin Aiyoob

Secretary General




Dated: 24th December, 2011




Pakistan Hosiery Manufacturers & Exporters Association organized this seminar at PHMA House, Karachi on Saturday, 24th December, 2011 for awareness of its members on EOBI Act and Rules.


Mr. Raja Faiz-ul-Hasan, Advocate / Consultant and Labour Laws conducted this Seminar. He apprised to the members about the Employees' Old‑Age Benefits Act, 1976 and the Rules in force.


Ø  There is no provision for suo moto registration in Act.


Ø  Minimum Wages as per Minimum Wage for Unskilled Worker Ordinance, 1969 is Rs.6000/- as such contribution is payable on Rs.6000/-. Reference to P.M’s speech is not valid for payment of contribution.


Ø  Demand and Show Cause Notice can only be issued as per provisions contained in EOBI (verification) Regulations.


Ø  Resort to Land Revenue can be made only after determination of contribution under section 33 of the Act as decided by the Superior courts.


Ø  Inspection of record can be demanded in the situation as provided in section 12 and Verification Regulations only.


Ø  Record can be inspected only by the authorized officer, having proper authority letter and not by all officers of the institution.


Later a Question - Answer Session was held when the participating members asked several questions relating to the issues faced by them with regards to EOBI and Mr. Raja Faiz-ul-Hasan, Advocate / Consultant and Labour Laws replied satisfactorily:


Q. Will an employee get pension if he has made contribution for a period of 15 years?


Ans. If an employee got registered before 2008 and his age was 45 years, he needs 5 years of insurable employment. If an employee’s age was above 40 years and below 45 years, then the required period would be 7 years. Those who got registered after July, 2008 for them 15 years contribution has to be paid.


Q. EOBI is demanding contribution on minimum of Rs.7000/- @ Rs.420 which is 6% minimum salary where as on Rs.6000/- it comes to Rs.360/-. Please clarify?


Ans. EOBI is working on the Prime Minister’s Speech of 2010 but actually a speech cannot be made basis for this. It is clearly mentioned in the Minimum Wages for Unskilled Workers Ordinance of 1969 that the minimum wage is Rs.6000/-. It is an irony that while they are following the speech with regards to this but not following the speech with regards to age of retirement for mine workers which as per speech is 50 years but they are not paying pension after 50 years age.


Q. If payment of contribution has been made erroneously, can be claim this?


Ans. Off course you can claim the payments made erroneously as Section 15 clearly says that employer is entitled to claim the payment made erroneously within 6 months.


Q. I would like to know if there are any High Court Orders relating to cases of Minimum Wage Rs.6000/-?


Ans. To the best of my knowledge, I have not come a cross any such cases. However it is an established fact that large number of companies are paying contribution on the Minimum Wage of Rs.6000/.


Q. Is Suo Moto registration by EOBI?


Ans. Suo Moto Registration not legal under any circumstances. As per EOB Act:


  1. Application of Act
  2. Registration under the Act


Application of the Act is Automatic. If you have 5 or more employees, application of the Act is automatic.


Q. If we did not get registered our organization intentionally then can they take Suo Moto.


Ans. They still cannot take Suo Moto but they can take either of the two options.


  1. Under Section 33 they will go to adjudication with plea that this organization is liable to be registered and adjudicating authority has jurisdiction to entertain such complaint against the registration of any industry or establishment.
  2. Under Section 38 they can prosecute. However they will not order for registration but give punishment.


Q. There is a dispute between my company and EOBI relating to payment of contribution from the period July, 2010 to June 2011. We went under Section 33 and then Section 34 and then for review and later now our case is in the court. The matter is that EOBI claims that our contribution is less than required. So much time has passed so will EOBI send me an Audit Notice or they will not take any action as matter is in the Court?


Ans. Under Section 33 and 34 if there is any dispute they cannot take any action. Our plea should be legal and the matter which is pending in the court should be decided and only then the EOBI can take action and check your record. Most important of all, any officer of EOBI cannot come and check your record.


Q. If in case we have not paid contribution of EOBI for last three months or in case any employee made a complaint or while contribution has been but name of employees not given then EOBI can check record but if the names of employees has been submitted but card has not been made in such case can EOBI insist on checking of the records?


Ans. No, they cannot check the record even in this case.


Q. Then in such case if we obtain order of the court through Association platform that they cannot check the records?


Ans. Yes, then the matter ends and they cannot check the records.


Q. Member asked about corroborative evidence and available evidence?


Ans. What evidence. The Rules defines the evidence. If corroborative evidence is there is it on a piece of paper.


Q. Does the Regional Head has the authority to check the records?


Ans. Yes, as per Section 12 subsection 1 Authorized Officer to check the record must possesses an authority letter with his picture on the same and this authority letter should have EOBI Official embossed seal and two signatures of the Board of Trustees and one of Regional Authority. You can demand to see the authority letter before allowing any checking of the record.


Q. In case we have any legal query in the matter, can we contact you?


Ans. Yes, without any hesitation, I can be contacted at my email address which is


Mr. Raja Faiz ul Hassan Faiz

Legal Advisory Cell

The Industrial Relations Advisers,

Arbitrators, Management & Labour Laws Consultants

House No. 535, Street No. 9/1, Block B,

National Police Foundation, O-9 Scheme,

Islamabad Expressway,


Phone: 051-5708639