Govt Considers Voluntary Pension Scheme To Bring Informal Workers Under Social Protection.
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✧ GENERATE BRIEFING
The federal government is reviewing a voluntary pension scheme to provide social protection to domestic, agricultural, and self-employed informal workers. The federal government is evaluating a framework for a voluntary pension scheme aimed at extending social protection coverage to informal, self-employed, and vulnerable workers currently excluded from formal retirement benefits. The initiative was reviewed during a session of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force, chaired by Federal Minister for Law and Justice Senator Azam Nazeer Tarar. The proposed model seeks to bring domestic staff, agricultural laborers, and independent earners into a structured safety net, utilizing digital infrastructure such as the Employees’ Old-Age Benefits Institution (EOBI) network for streamlined registration, transparent tracking, and long-term financial sustainability aligned with ILO principles.
The federal government is considering a voluntary pension scheme to bring domestic workers, agricultural workers, self-employed people and other informal workers currently outside the formal pension system under social protection coverage.
The issue was reviewed at a meeting of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force, chaired by Federal Minister for Law and Justice Senator Azam Nazeer Tarar, according to the Press Information Department.
The committee examined different models for extending pension coverage to workers who are not currently covered by existing pension arrangements. A voluntary mechanism for informal workers was among the core options discussed.
Designing an Inclusive and Sustainable Framework
Officials considered various administrative structures for participation by employers, employees, and self-employed workers. Key operational elements under review include:
- Digital Integration: Utilizing the Employees’ Old-Age Benefits Institution (EOBI) digital architecture as a baseline model for registration, contribution collection, and administration.
- Transparency and Tracking: Implementing robust digital record-keeping to secure contributor funds and ensure long-term actuarial sustainability.
- ILO Alignment: Ensuring the eventual framework aligns with international standards and International Labour Organization (ILO) principles.
Bridging the Social Protection Gap
The proposed initiative is structured to extend retirement safety beyond Pakistan’s traditional formal employment sectors, directly addressing the vulnerabilities faced by agricultural hands, domestic help, and independent contractors.
Senator Azam Nazeer Tarar emphasized that access to a dignified and financially secure retirement should be a fundamental right for every worker rather than a privilege restricted solely to the formal corporate or government sectors.
While the committee has outlined broad structural parameters, the government has yet to finalize contribution rates, eligibility criteria, or an official implementation timeline as consultations continue.
