ISLAMABAD - Taking serious notice of the Employment Old-Age Benefit Institution paying 100 per cent extra house rent to its employees and other irregular allowances, the Finance Division has asked for its immediate withdrawal.

Paying 90 per cent house rent allowance by the EOBI to its employees is in violation of the federal government’s rules for the payment and haven’t received any approval from the Finance Division and is therefore irregular, Official sources told The Nation here Friday.

The federal government rate for house rent allowance is 45 per cent of the initial basic pay while EOBI is paying 100 per cent extra house rent to its employees on running basic pay, the official said.

The official said that under section 6(2) of the EOBI act “in discharging its functions, the institution shall be guided by such instructions on questions of policy as may be given to it from time to time, by the federal government, which shall be the sole judge as to whether any instructions are on a question of policy or not”.

But EOBI is paying these allowances to its staff without the approval of Finance division and therefore they are irregular, the official said.

Employment Old-age Benefit Institution is also paying Head office allowance of 10 per cent of the basic pay for employees posted at head office as well as posted in Islamabad.

The EOBI management is paying irregular allowances without the approval of Finance Division. The institution is paying 10 per cent, of the basic pay, for utility bill allowance to its employees which is illegal, the official said.

The official further said that EOBI is also paying computer allowance to its employees. The employees’ up to scale 9 is getting Rs2,000 per month, for the computer while the employees in pay scale 10 and above are receiving Rs3,000 per month.

The EOBI is paying its car entitled officers apart from their actual expenditure (fuel) as the employees are getting Rs3,000 quarterly for vehicle which one year older and subsequently the rate increases in each grade as the life of the vehicle increases up to grade- 11, the official said.

The Lahore High Court in 2009 asked the EOBI not to revise its pay and allowances without concurrence of the Finance Division. The EOBI has been asked to immediately discontinue its special allowance 2010 on running basic pay, Utility bill allowance at 10 percent of basic pay, Tea facility, bonus and car maintenance allowance.

In a similar development the Finance Division has very recently asked for the recovery of millions of rupees paid in irregular allowances and benefits to the employees of Trade Development Authority of Pakistan.

The official said that this discriminatory policy of pay and allowances between various government departments must be stopped as it is creating a sense of deprivation among the federal government employees.