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<h1>Social Security Programs Throughout the World: Asia and the Pacific, 2010</h1>
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<h1>Pakistan</h1>
<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 = 85.42&nbsp;rupees.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1972, never implemented.</p>
<p><span class="h4">Current law:</span> 1976 (<span class="nobr">old-age</span> benefits).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Employees of firms with 5&nbsp;or more workers.</p>
<p>Exclusions: Family labor and self-employed persons.</p>
<p>Special systems for public-sector employees; members of the armed forces; police officers; and employees of statutory bodies, local authorities, and railways.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> 1% of the minimum wage.</p>
<p>The minimum wage is 7,000&nbsp;rupees a month.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 5% of the minimum wage.</p>
<p>The minimum wage is 7,000&nbsp;rupees a month.</p>
<p><span class="h4">Government:</span> Subsidies as needed.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4"><span class="nobr">Old-age</span> pension:</span> Age&nbsp;60 (men) or age&nbsp;55 (women) with at least 15&nbsp;years of contributions; age&nbsp;50 for miners with at least 15&nbsp;years of contributions. Retirement from covered employment is not necessary.</p>
<p>Early pension: A reduced pension is paid from ages&nbsp;55 to 59 (men) or ages&nbsp;50 to 54 (women).</p>
<p><span class="h4"><span class="nobr">Old-age</span> grant:</span> Age&nbsp;60 (men) or age&nbsp;55 (women); age&nbsp;50 for miners. The insured is ineligible for the <span class="nobr">old-age</span> pension but has at least 2&nbsp;years of covered employment.</p>
<p><span class="h4">Disability pension:</span> Assessed with a 67% loss in earning capacity. Must have at least 15&nbsp;years of contributions or 5&nbsp;years of contributions including 3 out of the last 5&nbsp;years.</p>
<p><span class="h4">Survivor pension:</span> The deceased was a pensioner at the time of death.</p>
<p>In order of priority, eligible survivors are the spouse, children younger than age&nbsp;18 (no limit if disabled or for unmarried daughters), the deceased's parents, and other dependents. The surviving spouse must have been married to the deceased before the deceased reached the minimum pensionable age for the <span class="nobr">old-age</span> pension.</p>
<h3><span class="nobr">Old-Age</span> Benefits</h3>
<p><span class="h4"><span class="nobr">Old-age</span> pension:</span> 2% of the average monthly earnings in the last 12&nbsp;months multiplied by the number of years of covered employment is paid.</p>
<p>The minimum <span class="nobr">old-age</span> pension is 3,000&nbsp;rupees a month.</p>
<p>Early pension: The pension is reduced by 0.5% for each month that the pension is taken before the normal retirement age.</p>
<p>Benefit adjustment: Benefits are adjusted on an <span class="nobr">ad-hoc</span> basis.</p>
<p><span class="h4"><span class="nobr">Old-age</span> grant:</span> A lump sum of 1&nbsp;month of earnings for each year of covered employment is paid.</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Disability pension:</span> 2% of the average monthly earnings in the last 12&nbsp;months multiplied by the number of years of covered employment is paid.</p>
<p>The minimum pension is 3,000&nbsp;rupees a month.</p>
<p>Benefit adjustment: Benefits are adjusted on an <span class="nobr">ad-hoc</span> basis.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> 100% of the deceased's minimum pension is paid to the surviving spouse or split equally among spouses. In the absence of a surviving spouse, the pension is split equally among eligible orphans. In the absence of eligible orphans and if the surviving spouse dies within 5&nbsp;years of first receiving the survivor pension, the survivor pension is paid to the deceased's surviving parents for up to 5&nbsp;years after the death of the insured's spouse; in the absence of surviving parents, the remaining balance of the first 5&nbsp;years of survivor pension may be paid to a dependent.</p>
<p>The minimum pension is 3,000&nbsp;rupees.</p>
<p>Benefit adjustment: Benefits are adjusted on an <span class="nobr">ad-hoc</span> basis.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Labour, Manpower, and Overseas Pakistanis (http://www.molm.gov.pk) provides general supervision.</p>
<p>Employees' <span class="nobr">Old-Age</span> Benefits Institution (<a href="http://www.eobi.gov.pk">http://www.eobi.gov.pk</a>) administers the program.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1962 (national law), never implemented.</p>
<p><span class="h4">Current law:</span> 1965 (provincial social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system. Cash and medical benefits.</p>
<h3>Coverage</h3>
<p>Employees of industrial, commercial, and other establishments with five or more workers earning up to 10,000&nbsp;rupees a month.</p>
<p>Eligibility for benefits does not cease on leaving covered employment.</p>
<p>Exclusions: Family labor and self-employed persons.</p>
<p>Special systems for public-sector employees, members of the armed forces, police officers, local authority employees, and railway employees.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p>The employee's contributions also finance work injury benefits.</p>
<p><span class="h4">Self-employed person:</span> Not applicable.</p>
<p><span class="h4">Employer:</span> 6% of monthly payroll.</p>
<p>The maximum earnings used to calculate contributions are 10,000&nbsp;rupees a month or 400 rupees a day.</p>
<p>The employer's contributions also finance work injury benefits.</p>
<p><span class="h4">Government:</span> None.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Cash sickness benefits:</span> The insured must have at least 90&nbsp;days of contributions in the last 6&nbsp;months.</p>
<p><span class="h4">Cash maternity benefits:</span> The insured must have at least 180&nbsp;days of contributions in the last 12&nbsp;months.</p>
<p><span class="h4">Medical benefits:</span> The insured must be currently covered.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> 75% of the insured's earnings is paid; 100% for tuberculosis and cancer (50% in North-West Frontier Province and Balochistan). The benefit is paid after a <span class="nobr">2-day</span> waiting period for up to 121&nbsp;days (365&nbsp;days for tuberculosis and cancer) in a <span class="nobr">1-year</span> period.</p>
<p><span class="h4">Maternity benefit:</span> 100% of the insured's earnings is paid for 12&nbsp;weeks, including up to 6&nbsp;weeks before the expected date of childbirth.</p>
<p><span class="h4">Death grant:</span> A death grant is provided.</p>
<h3>Workers' Medical Benefits</h3>
<p>Social security facilities provide medical services. Benefits include general medical care, specialist care, medicine, hospitalization, maternity care, and transportation.</p>
<p>Benefits are awarded for as long as it is considered necessary or for 6&nbsp;months after the patient has exhausted entitlement to sickness benefits, whichever period is shorter.</p>
<h3>Dependents' Medical Benefits</h3>
<p>Social security facilities provide medical services. Benefits include general medical care, specialist care, medicine, hospitalization, maternity care, and transportation.</p>
<h3>Administrative Organization</h3>
<p>Provincial Labour Department provides general supervision.</p>
<p>Provincial Employees' Social Security Institutions administer the program in each province. The institutions are managed by a tripartite governing body and a commissioner and are authorized to establish their own dispensaries and hospitals or to contract with public and private agencies for provision of medical services.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1923 (workmen's compensation), implemented in 1924.</p>
<p><span class="h4">Current law:</span> 1965 (provincial social security).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<p>Note: The 1923 workmen's compensation law remains in force for employees not covered by the 1965 social security law.</p>
<h3>Coverage</h3>
<p><span class="h4">Social security:</span> Employees of industrial, commercial, and other establishments earning up to 10,000&nbsp;rupees a month.</p>
<p>Exclusions: Family labor and self-employed persons.</p>
<p><span class="h4">Workmen's compensation:</span> Employees of industrial establishments with 5&nbsp;or more workers earning up to 7,000&nbsp;rupees a month.</p>
<p>Exclusions: Family labor and self-employed persons.</p>
<p>Special systems for public-sector employees, members of the armed forces, police officers, local authority employees, and railway employees.</p>
<p>Commercial and industrial establishments with 50&nbsp;or more employees must provide group insurance for temporary and permanent disability and death benefits for employees earning less than the minimum required amount.</p>
<h3>Source of Funds</h3>
<h4>Insured person</h4>
<p><span class="h5">Social security:</span> None.</p>
<p><span class="h5">Workmen's compensation:</span> None.</p>
<h4>Self-employed person</h4>
<p><span class="h5">Social security:</span> Not applicable.</p>
<p><span class="h5">Workmen's compensation:</span> Not applicable.</p>
<h4>Employer</h4>
<p><span class="h5">Social security:</span> See source of funds under Sickness and Maternity.</p>
<p><span class="h5">Workmen's compensation:</span> The total cost, including the cost of medical examinations.</p>
<h4>Government</h4>
<p><span class="h5">Social security:</span> None.</p>
<p><span class="h5">Workmen's compensation:</span> None.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<h3>Temporary Disability Benefits</h3>
<h4>Temporary disability benefit</h4>
<p><span class="h5">Social security:</span> 60% of earnings is paid (100% in Punjab and Sindh) after a <span class="nobr">3-day</span> waiting period for up to 180&nbsp;days (the waiting period is waived in Punjab).</p>
<p><span class="h5">Workmen's compensation:</span> Insured persons with earnings of less than 10,000&nbsp;rupees a month receive 50% of monthly earnings for up to 1&nbsp;year; for lung disease, 33% of monthly earnings for up to 5&nbsp;years.</p>
<h3>Permanent Disability Benefits</h3>
<h4>Permanent disability pension</h4>
<p><span class="h5">Social security:</span> For a total disability (loss of earning capacity of 67% or more), 75% of earnings (100% in Punjab) is paid.</p>
<p>Partial disability: Up to 66% of the total disability benefit is paid, according to a schedule in law.</p>
<p><span class="h5">Workmen's compensation:</span> For a permanent total disability, a lump sum of 300,000&nbsp;rupees is paid. The cost of any medical examination is paid by the employer.</p>
<h3>Workers' Medical Benefits</h3>
<p>Social security facilities provide medical services. Benefits include general medical care, specialist care, medicine, hospitalization, maternity care, and transportation.</p>
<p>There is no limit to the duration of benefits.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension (social security):</span> 60% of the deceased's total disability pension is paid to a widow or a needy widower with a disability.</p>
<p><span class="h4">Orphan's pension (social security):</span> 20% of the deceased's total disability pension is paid to each orphan younger than age&nbsp;16; 40% for a full orphan.</p>
<p><span class="h4">Dependent parent's pension (social security):</span> In the absence of a <span class="nobr">widow(er)</span> and orphans, 20% of the deceased's total disability pension is paid to each dependent parent.</p>
<p>The maximum survivor pension is 100% of the deceased's total disability pension.</p>
<p><span class="h4">Death grant (social security):</span> A death grant is provided.</p>
<p><span class="h4">Survivor grant (workmen's compensation):</span> A lump sum of 100,000&nbsp;rupees is paid.</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Social security:</span> Provincial Labour Department provides general supervision.</p>
<p>Provincial Employees' Social Security Institutions in each province&nbsp;administer contributions and benefits.</p>
<p><span class="h4">Workmen's compensation:</span> Workmen's compensation commissioners in each province provide general supervision.</p>
<h2>Unemployment</h2>
<h3>Regulatory Framework</h3>
<p>No statutory unemployment benefits are provided.</p>
<p>The labor code requires employers with 20&nbsp;employees or more to pay a severance payment of the last 30&nbsp;days of wages for each year of employment.</p>
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