Details of offences and penalties as given under the employee’s old age benefit acts

by • 17/01/2013 • GeneralComments (0)418

Q-5:     Gives the details of offences and penalties as given under the employee’s old age benefit acts.


The following acts are considered to be offences under the EOBI Act of 1976, [Sec. 37].

(a)        If any person for the purpose of obtaining a benefit, or denial of any payment or benefits under this Act, whether for himself or some other person, or for the purpose of avoiding any payment to be made by himself or any other person under this Act knowingly makes or causes to be made false statement or false representation; or

(b)        If he produces or furnishers, or causes or knowingly allows to be produced or furnished any document or information which he knows to be false in any material particularly; or

(c)        If he fails to pay any contribution which under this Act he is liable to pay; or

(d)        If he recovers or attempts to recover from an insured person, or deducts or attempts to deduct from his wages, the whole or any part of the contribution; or

(e)        If he fails or refuse to submit any return required by this Act or regulation or makes a false return; or

(f)         If he obstructs any official of the institution in the discharge of his duties; or

(g)        If he is guilty of any contravention of, or non-compliance with, any of the provisions of this Act or the rules or the regulations.

In all the above cases, he shall be punished with imprisonment for a term which may extend to 2 years, or with fine which may extend to Rs. 10,000.

Section 38 of the Act deals with the Prosecution matters. According to this Section, no prosecution under this Act shall be instituted except with the previous sanction of the Federal Government or any officer or authority authorized in this behalf by it. No court inferior to that of a M-gistrate of the first class shall try any offence under this Act. Also no court shall take cognizance of any offence under this Act except on a complaint made in writing within 6 months of the date on which the offence comes to the knowledge of the Federal Government or an officer or invalidity referred to in subsection above.



The provisions of this Act will not apply in respect of following categories of persons:

1.         In the service of State, including members of the armed forces, police force and Railway servants;

2.         In the service of a local council, a municipal committee, a cantonment board or any other local authority;

3.         Who are employed in services or installations connected with or incidental to the Armed Forces of Pakistan including an ordinary factory maintained by the Federal Government or Railway administration?

4.         In the service of Water And Power Development Authority;

5.         In the service of a 3ank or a Banking company;

6.         In the services of a statutory body other than those employed in or in connection with affairs of a factory, workshops maintained exclusively for the purposes of repair or maintenance of equipment or vehicles used in such statutory bodies shall not be treated as factories, for the purposes of this clause.

Nothing of the Act shall apply to members of the employer’s family i.e. the husband or wife and dependent children of the employer, living in his house, in respect of their work for him.



(1)        The monthly rate of old-age pension or invalidity pension payable to an insured person shall be calculated in accordance with the following formula, namely:

Average monthly wages x Number of years of insurable employment


A period of six months or more of insurable employment shall be treated as one full year. No account shall be taken of any period of insurable employment completed by the insured person after becoming entitled to old-age pension.

(2)        The average monthly wages of an insured person, referred to in paragraph (1) shall be calculated on the basis of wages on which contributions were payable in respect of the twelve calendar months immediately preceding the date on which the insured person fulfils the conditions specified in Section 22 or Section 23 as the case may be.

Provided that the old-age pension or invalidity pension payable to an insured person shall not be less than four hundred and twenty five rupees per month for pension commencing on or after the first day of July 1991.

(3)        The minimum old-age pension under Sub-Section (2A) of Section 22 shall be paid at the following rates, namely:

Years of commencement of pension

Minimum monthly pension (Rs.)












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