The governing law is the Employees Old-Age Benefits Act 1976 and it applies to every industry or establishment wherein ten or more persons are employed directly or through any other person whether on behalf of himself or any other person, or were so employed on any day during preceding 12 months. Also,  under the Labour Law (Amendment) Ordinance 2001 industry or establishment with less than ten workers may also apply for voluntary registration.

§ 9(1). Contributions payable every month by employer to Employees’ Old-Age Benefits Institution in respect of every person in his insurable employment, at rate of 5% of his wages.

§ 22. Old Age Pension: Insured person entitled to old age allowance at rates specified in schedule provided that: (a) He is over 60 years of age or in case of woman, 55 years, (b) contributions in respect of him were paid.

§ 23. Invalidity Pension: Insured who sustained invalidism (i.e., condition other than that caused by employment injury as result of which insured person is permanently incapacitated to such extent as to be unable to earn from his usual or other occupation more than 1/3 of normal rates of earning in his usual occupation) shall be entitled to invalidism allowance at rate specified in schedule subject to conditions in § 23.

§ 26. Right to invalidism and old age allowance is extinguished if claim is not made within 12 months from date it becomes payable, but Institution may condone delay if it was caused for reasons beyond control of insured person or survivor. Through amendments made by 2002 Ordinance employer may opt to register under self-assessment scheme instead of normal pension scheme whereby he shall be liable to pay fixed amount of Rs. 150 in respect of every person in his insurable employment irrespective of his wages. As of July 1, 2001, employees (insured persons) have been made liable to pay through employer Rs. 20 per month as contribution to Institution fund.