Payroll Services

A single payslip in Pakistan touches at least four different regulators: FBR for income tax withholding, EOBI for old-age benefits, the provincial social security institution, and provincial minimum wage and labour law. We run payroll so every one of those obligations is met correctly and on time, every month.

The compliance layers behind Pakistani payroll

Income tax on salary isn't withheld as a flat rate per payslip. Under Section 149 of the Income Tax Ordinance, 2001, the employer estimates the employee's full-year taxable income, works out the annual liability against the applicable slab rates, and withholds it proportionally each month, then deposits it and reports it to FBR through periodic withholding statements. Getting this wrong doesn't just create year-end reconciliation headaches for the employee, it exposes the employer to default surcharge and penalties.

Alongside income tax, EOBI registration becomes mandatory once a business reaches a set number of employees, with a fixed employer-and-employee contribution split calculated on the government-notified minimum wage rather than actual salary. Provincial social security — PESSI in Punjab, SESSI in Sindh, and their counterparts elsewhere — adds a separate, province-specific registration and contribution on top of that. And minimum wage itself is set federally but frequently topped up by provincial notification, so what an employer owes can differ by where staff are actually based. We track all of it so payroll runs correctly regardless of how many provinces your team is spread across.