Govt plans voluntary pension scheme for informal workers

October 01, 2026 (MLN): Pakistan is considering a voluntary pension scheme for domestic workers, agricultural workers, self-employed persons and other informal workers currently outside the formal pension system.

The development emerged during 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.

The committee reviewed different models for bringing pension-excluded workers into the social protection system, including options for participation by employers, employees and self-employed individuals.

The proposed framework would also incorporate digital registration and transparent record-keeping, while ensuring long-term financial sustainability.

The committee discussed using the Employees’ Old-Age Benefits Institution (EOBI)’s digital system as a model for the proposed voluntary pension arrangement.

Federal Minister for Law and Justice Senator Azam Nazeer Tarar said pension protection should not remain confined to workers in the formal sector and stressed the need to bring domestic workers, agricultural workers, self-employed persons and other informal workers into the social protection framework.

The proposed pension system is expected to focus on accessibility and financial sustainability while remaining aligned with international standards and International Labour Organization principles.

Federal Minister for Overseas Pakistanis and Human Resource Development Chaudhry Salik Hussain, Minister of State for Finance and Revenue Bilal Azhar Kayani and Adviser to the Prime Minister Haroon Akhtar Khan also attended the meeting.

This is potentially significant because it points toward extending formal retirement savings coverage to a large segment of Pakistan’s informal workforce, although the release does not provide a launch date, contribution structure or fiscal cost.

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