EOBI stopped from collecting contribution from private bank

LAHORE: The Lahore High Court on Tuesday stopped Employees of Old-Age Benefits Institution (EOBI) from collecting contribution from a private bank and its employees.

Justice Ayesha A Malik passed the orders on a petition filed by Askari Bank challenging collection of contribution by the EOBI.

The court also issued a notice to the federal government and the EOBI and sought reply.

Earlier, petitioner's counsel arguing before the court submitted that the EOBI was collecting contribution from the bank and its employees to the tune of 5 percent and one percent, respectively on the minimum wages.

He said that the Supreme Court had stopped the EOBI from collecting contribution from the banks or its employees in 2007 but despite that the EOBI collect contribution from the petitioner-bank and its employees.

He pleaded the court to set aside the collection of contribution from the bank and its employees.

The court after hearing initial arguments stopped the EOBI from collecting the contribution from petitioner-bank and issued notices to the respondents for reply.