ISLAMABAD: The Federal Constitutional Court (FCC) Friday dismissed all appeals filed by the Employees Old-Age Benefits Institution (EOBI) against the Lahore High Court’s decisions granting pensions under the Old Age Benefits scheme to the employees of private institutions, and has directed the appellant (EOBI) to pay monthly old age pensions to all petitioners.
A three-member bench, headed by Chief Justice Aminuddin Khan, heard the case on December 9, 2025
Justice Syed Hasan Azhar Rizvi and Justice Arshad Hussain Shah were the other members of the bench,
“The High Court correctly understood the controversy at hand and made a well-founded decision based on the relevant law on the issue,” says a 16-page judgment authored by Justice Syed Hasan Azhar Rizvi.
The court held that in its thorough analysis of the applicable law and the available facts, the High Court arrived at a sound and reasoned conclusion that is both legally correct and just.
“Hence, no illegality, perversity, or misreading or non-reading of evidence has been found in the impugned judgments,” the court held
The court dismissed the petitions after refusing the leave and disposed of all the CMAs.
The court ruled that the employees who had completed less than 15 years but at least fourteen and a half years of service were entitled to old age pension, and that six months or more of service will be treated as a full year. Accordingly, the principle of rounding off will apply in pension matters.
The respondents, having thus fulfilled the mandatory requirements of Section 22(1) of the Act through the statutorily recognized mechanism of “rounding off”, were rightly found entitled to the grant of a monthly old-age pension by the High Court
The court declared that the schedule was an integral and mandatory part of the law and clarified that the EOBI’s 2022 circular cannot affect the right to pension. According to the judgment, depriving employees of pension through a strict interpretation of welfare legislation amounts to injustice.
