The federal government on Wednesday issued a notification announcing a 20 per cent increase in the pension rate for Employees Old-Age Benefits Institution (EOBI) pensioners.

The government has also set the minimum amount of pension at Rs6,500 per month, according to the notification issued by the Ministry of Overseas Pakistanis and Human Resource Development.

The changes will go into effect retrospectively, starting on September 1, 2018.

The federal cabinet had accorded approval to a 20pc increase in the EOBI pensions last week.

According to the notification, the decision was taken in exercise of powers conferred on the government by the Employees Old-Age Benefits Act, 1976.