How much pension does a government employee get in Pakistan?

A Pakistani government employee's pension is calculated as: (Last drawn basic pay × years of service × 70%) ÷ 30. The maximum pension is 70% of last drawn basic pay, achieved after 30+ years of service. Additionally, a one-time commutation (up to 35% of pension) can be taken as a lump sum at retirement.

What is EOBI pension and who is eligible in Pakistan?

EOBI (Employees Old-Age Benefits Institution) provides a minimum monthly pension of Rs 10,000 (last revised 2023) to employees in the formal private sector. To be eligible, you must have been insured under EOBI for at least 15 years (500 weeks of contributions) and be at least 60 years old (men) or 55 years old (women), with your employer registered with EOBI.

What is VPS (Voluntary Pension System) in Pakistan?

VPS is a SECP-regulated retirement savings scheme for individuals in Pakistan. Annual contributions up to Rs 150,000 (or 20% of taxable income) are deductible from taxable income. At retirement, 50% can be withdrawn as a tax-free lump sum; the remaining 50% must be used to purchase an annuity. It is ideal for salaried employees and freelancers seeking tax-efficient retirement savings.

How much should I save monthly for retirement in Pakistan?

A common target is to replace 70–80% of pre-retirement income. If you need Rs 100,000/month in retirement and expect a 12% annual return on your corpus, you need approximately Rs 1 crore saved per Rs 12,000 of monthly income requirement. Saving Rs 20,000/month for 20 years at 15% p.a. would build roughly Rs 1 crore. Use the pension calculator above to model your specific situation.

🏛 Pension Calculator

Pension Fund & Retirement Calculator

Retirement savings in Pakistan fall under four main schemes: GPF (General Provident Fund) for government employees, EPF for private sector workers, EOBI for formal-sector employees, and VPS (Voluntary Pension System) for anyone seeking tax-efficient savings. This free pension calculator projects your total corpus at retirement based on salary, contribution rates, and investment returns — then calculates the monthly pension that corpus can sustain using the SWP formula. Enter your age, salary, and contribution details to plan your retirement income.

Pension Scheme Preset

Current Age

1859

Retirement Age

4570

Monthly Salary

Rs 10KRs 20L

Annual Salary Increment

0%30%

Employee Contribution

0%30%

Employer Contribution

0%30%

Return During Accumulation

1%35%

Desired Pension Duration

5 yrs40 yrs

Corpus at Retirement

Rs 0

Monthly pension: Rs 0

Monthly Pension at Retirement

Rs 0

—

Corpus at Retirement

Rs 0

—

Total Contributions

Rs 0

—

Investment Growth

Corpus ÷ contributions

Pension Corpus Growth

Employee + employer contributions + investment returns by year

Employee Employer Returns

Corpus Composition

Retirement Summary

Year-by-Year Accumulation

Year / Age	Salary	Contribution	Interest	Corpus

How to Use

Select a pension scheme preset (EOBI, VPS, GPF) or choose Custom to set your own contribution rates.
Enter your current age and target retirement age.
Set your monthly salary and expected annual increment percentage.
Adjust employee and employer contribution rates and the expected annual return during accumulation.
Set your desired pension duration (how many years you want monthly income post-retirement).
Read your projected corpus at retirement, monthly pension payout, and year-by-year accumulation breakdown.

Frequently Asked Questions

What is the difference between GPF, EOBI and VPS?

GPF (General Provident Fund) is for government employees — only the employee contributes (8.33%). EOBI (Employees' Old-Age Benefits Institution) covers private sector workers with 5% employee + 5% employer contributions. VPS (Voluntary Pension Scheme) is a SECP-regulated private pension where both parties contribute freely — typically 10% + 10%.

How is the monthly pension calculated?

The pension uses the SWP (Systematic Withdrawal Plan) formula: Monthly Pension = Corpus × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly drawdown return rate and n is the total pension months. This ensures the corpus depletes to zero at the end of your desired pension period.

What return rate should I use?

During accumulation, Pakistani pension funds targeting moderate risk typically return 12–18% p.a. For drawdown, a conservative 10–12% is safer. VPS equity funds can return 20%+ but carry market risk. This calculator uses your accumulation rate for drawdown as well — you can set them the same or adjust mentally.

Is VPS contribution tax-deductible in Pakistan?

Yes. Under Section 63 of the Income Tax Ordinance 2001, contributions to an approved VPS (up to 20% of taxable income) are deductible. This makes VPS one of the most tax-efficient savings vehicles in Pakistan.