Court Rules Workers Eligible for Pension After 14.5 Years of Service. In a major relief for workers across Pakistan, the court has ruled that employees with 14.5 years of service are legally eligible for a monthly pension. This landmark judgment strengthens worker protection under pension laws and reinforces the welfare purpose of social security legislation.
The decision directly impacts thousands of employees who were previously denied pensions due to minor shortfalls in service duration. It also sends a strong message to public institutions to apply the law fairly rather than rely on rigid technicalities.
Court Upholds Workers’ Pension Rights
A three-judge bench dismissed five appeals filed by the Employees’ Old-Age Benefits Institution (EOBI). These appeals challenged earlier rulings of the Lahore High Court, which had granted pension benefits to workers with slightly less than the standard fifteen years of insurable employment.
The court upheld the High Court’s interpretation of the Employees’ Old-Age Benefits Act, 1976, confirming that the law includes a rounding-off provision. Under this rule, any service period of six months or more is counted as a full year for pension eligibility.
What the Rounding-Off Rule Means
The judgment clarified that pension eligibility does not depend solely on completing a strict fifteen-year term. Instead:
- If a worker completes 14 years and 6 months,
- That period legally counts as 15 years of service,
- Making the worker fully eligible for a monthly pension.
The court emphasized that this provision exists to prevent workers from losing benefits due to marginal service shortfalls that are often beyond their control.
Why EOBI’s Appeals Were Rejected
The bench found that EOBI had wrongly denied pensions to five workers by:
- Ignoring the statutory schedule of the Act
- Applying the fifteen-year requirement rigidly
- Relying on internal executive circulars instead of the law
The court ruled that EOBI’s 2022 circular, which attempted to exclude the rounding-off rule, had no legal standing. Executive instructions cannot override legislation or take away rights that have already accrued under the law.
Key Observations by the Court
The judgment made several important observations:
- Social welfare laws must be interpreted in favor of workers
- Public institutions must act fairly, consistently, and lawfully
- Legal rights cannot be withdrawn through administrative decisions
- Pension laws are designed to protect workers, not disqualify them on technical grounds
The court described the rounding-off rule as a substantive part of the pension framework, not a discretionary benefit.
Final Verdict
The bench conclusively held that:
Workers with 14.5 years or more of insurable employment meet the legal requirement for pension eligibility.
All five appeals filed by EOBI were dismissed, reaffirming the pro-worker intent of Pakistan’s pension laws.
Why This Judgment Matters
This ruling has wide-reaching implications:
- ✔ Protects workers nearing retirement
- ✔ Prevents unfair pension denials
- ✔ Limits misuse of executive circulars
- ✔ Strengthens trust in social security systems
- ✔ Sets a clear legal precedent for future cases
For many workers, this decision means long-awaited financial security during retirement.
Impact on Current and Future Pension Claims
Workers who were previously denied pensions due to service periods between 14.5 and 15 years may now:
- Reapply for pension benefits
- Challenge earlier rejections
- Seek legal remedies based on this judgment
It also obligates EOBI and similar institutions to review their policies and align them strictly with the law.
Conclusion
The court’s ruling marks a significant victory for workers’ rights in Pakistan. By recognizing 14.5 years of service as sufficient for pension eligibility, the judiciary has reinforced the humanitarian and protective purpose of pension laws.
This judgment ensures that workers are not deprived of lifelong benefits due to minor technicalities and that social welfare institutions remain accountable to the law they are meant to uphold.
