In accordance with Chapter III of the Act, an employer is required to submit his and employee’s contribution to a bank designated by EOBI before 15th of every month. An employer has to pay contribution equal to 5% of the minimum wage while an employee has to pay that contribution at the rate of 1% of minimum wage.
Keeping in view minimum wage of PKR 12,000 in Federal Areas, Punjab & KPK
An employer has to pay (5% of PKR 12,000= PKR 600)
An employee has to pay (1% of PKR 12,000= PKR 120)
So, in total, they have to submit PKR 720 for every insured employee, no matter what is his income level. Other than employer and employees, federal government may also make contribution to make up any deficiencies.