Court Declares Workers Eligible for Pension After 14.5 Years of Service
In a landmark decision that strengthens workers’ welfare rights, Pakistan’s apex constitutional court has ruled that employees who have completed 14 years and six months of service are entitled to receive a pension. The judgment brings long-awaited relief to thousands of workers who were previously denied benefits for falling just short of the 15-year requirement.
1/11/20262 min read
What the Court Decided
The court upheld earlier high court rulings and dismissed appeals filed by the Employees’ Old-Age Benefits Institution (EOBI). It clarified that under the Employees’ Old-Age Benefits Act, 1976, any service period of six months or more must be rounded off to a full year when calculating pension eligibility.
As a result, workers who have completed 14.5 years of insurable employment are now legally considered to have fulfilled the minimum 15-year requirement needed to qualify for an old-age pension.
The Legal Reasoning
Judges emphasized that pension laws are welfare-oriented legislation and should be interpreted in a manner that protects workers rather than excluding them on technical grounds. The court noted that denying pension benefits due to a marginal shortfall contradicts the spirit and intent of social security laws.
The ruling makes it clear that the “rounding-off” principle is not merely an accounting formality but a substantive legal right that must be applied when determining pension eligibility.
Why This Ruling Matters
For years, many workers were denied pensions despite contributing to the system for over 14 years, simply because they had not completed a full 15 years. This decision:
Protects workers from unfair technical exclusions
Reinforces the purpose of pension laws as social welfare measures
Sets a binding precedent for similar cases nationwide
Opens the door for previously rejected pension claims to be reconsidered
The judgment is particularly significant for private-sector and formal-sector employees who rely heavily on EOBI pensions for financial security after retirement.
Who Benefits from the Decision
Any worker whose official service record shows 14 years and six months or more of contributions now qualifies for pension benefits. This applies to both current applicants and individuals whose claims were previously rejected solely due to incomplete service duration.
Legal experts believe the ruling could impact thousands of pending and closed cases, prompting EOBI to revise its pension assessment practices.
A Step Toward Greater Social Justice
The court’s decision sends a strong message that social protection laws must be implemented with fairness and compassion. By recognizing 14.5 years of service as sufficient for pension eligibility, the judiciary has reinforced the principle that workers’ rights should not be undermined by rigid or narrow interpretations of the law.
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