In Pakistan, there are two main social security schemes: the Employees Old-Age Benefits Institution (EOBI) and the Social Security System (SSS). Both schemes provide benefits to workers in the event of retirement, disability, or death. However, there are some key differences between the two schemes.
EOBI
- EOBI is a government-run scheme that was established in 1976.
- It is compulsory for all employers to register their employees with EOBI.
- Employees contribute 5% of their salary to EOBI, while employers contribute 2%.
- Benefits include a pension, disability benefits, and survivor benefits.
SSS
- SSS is a private-sector scheme that was established in 2002.
- It is voluntary for employers to register their employees with SSS.
- Employees can choose to contribute between 2% and 12% of their salary to SSS.
- Benefits include a pension, disability benefits, and survivor benefits.
Key Differences
- EOBI is a government-run scheme, while SSS is a private-sector scheme.
- EOBI is compulsory for all employers to register their employees with, while SSS is voluntary.
- Employees contribute a higher percentage of their salary to EOBI than to SSS.
- EOBI provides a wider range of benefits than SSS.
Which Scheme is Right for You?
The best scheme for you will depend on your individual circumstances. If you are employed in the private sector and you want to have access to a wide range of benefits, then SSS may be the right choice for you. However, if you are employed in the public sector or you want to have access to a pension, then EOBI may be the right choice for you.
It is important to note that both EOBI and SSS are important social security schemes that provide valuable benefits to workers in Pakistan. If you are unsure which scheme is right for you, you should speak to your employer or a financial advisor.
