Pakistan plans pension coverage for domestic and agricultural workers
Pakistan plans pension coverage for domestic and agricultural workers
The pension for domestic workers Pakistan plan took shape on Thursday as lawmakers called for an urgent expansion of the country’s pension and social protection system to cover millions of workers in the informal economy.
They stressed the need to bring domestic workers, agricultural labourers and self-employed people into the national safety net. The call was made during a meeting of the Cabinet Committee on Pension Reforms for the Uncovered Labour Force.
Pension for domestic workers: voluntary scheme proposed
Members said every worker, regardless of employment status, should have access to a secure financial future through a pension.
Federal Minister for Law and Justice Senator Azam Nazeer Tarar, who chaired the meeting, said the proposed pension framework would be designed to ensure broad access, long-term financial sustainability and viability for future generations.
He said the plan would also remain aligned with international standards and the principles of the International Labour Organisation.
The committee reviewed different models for extending pension coverage to workers currently excluded from formal pension arrangements. It focused on a proposed voluntary pension scheme for domestic workers, agricultural labourers, self-employed individuals and other workers in the informal sector.
Contributions and registration
Members also examined possible contribution mechanisms for employers, employees and self-employed workers. They discussed digital registration, transparent record-keeping and the scheme’s long-term financial sustainability.
Who is left out today
Pakistan’s existing pension institutions, such as the Employees’ Old-Age Benefits Institution, cover workers in the formal sector — mainly factories and registered establishments. That leaves out the vast informal economy: domestic workers in private homes, farm labourers, street vendors and the self-employed, who make up a large share of the country’s workforce.
Bringing these workers into a pension system would be one of the biggest expansions of social protection in the country’s history, but it also poses hard questions about how contributions are collected from people with irregular incomes and no formal employer.
FAQs
Who would the expanded pension cover?
Domestic workers, agricultural labourers, self-employed individuals and other workers in the informal sector who are currently excluded from formal pension arrangements.
Is the proposed scheme mandatory?
The committee focused on a proposed voluntary pension scheme, with contribution models for employers, employees and self-employed workers under review.
Who is leading the pension reform effort?
The Cabinet Committee on Pension Reforms for the Uncovered Labour Force, chaired by Law Minister Azam Nazeer Tarar.
