Employee records
Joiners, leavers, salary structures and changes.
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Payroll mistakes hurt twice: employees are paid wrongly, and the business carries the tax and contribution liabilities. We run payroll for Pakistani businesses each month: salary calculations, income tax deducted under section 149, EOBI and provincial social security contributions, payslips, bank files and the statements and certificates the law requires.
Every month, an employer in Pakistan must calculate pay correctly, deduct the right income tax from salaries, pay employer and employee contributions where they apply and keep records that stand up to inspection. Getting any of these wrong creates liabilities for the business.
Under section 149 of the Income Tax Ordinance, 2001, employers deduct income tax from salaries each month, based on each employee's estimated annual taxable salary and the rates for the tax year, including perquisites taxed under section 13. The tax is deposited with FBR, reported in quarterly withholding statements under section 165 and evidenced by certificates given to employees. Where tax is not deducted or deposited, the employer can be made liable under section 161.
Employers covered by the Employees' Old-Age Benefits scheme contribute to EOBI, currently at 5% for the employer and 1% for the employee, calculated on the notified minimum wage. Provincial employees' social security institutions, such as PESSI in Punjab and SESSI in Sindh, collect employer contributions, generally 6% of the minimum wage, from covered establishments. Minimum wages are notified by each province and usually revised with the budget, so contributions must be updated when they change.
Our monthly cycle is simple. A few days before payday, you send us changes: new joiners, leavers, increments, bonuses, unpaid leave and any loans or advances to recover. We calculate gross pay, salary tax for each employee on an annualised basis, contributions and net pay, and send you a payroll summary to approve. Once approved, we prepare payslips and the bank transfer file, post the payroll journal to your accounts and prepare the tax and contribution payments. Each quarter the salary deductions go into the section 165 statement, and after year-end employees receive their certificates.
Salary tax is calculated carefully across the year. When an employee's pay changes mid-year, receives a bonus or joins from another employer, the remaining months' deductions are recalculated so that the total tax deducted matches the annual liability. Taxable perquisites, such as company vehicles, accommodation or loans at concessional rates, are valued and included, and the treatment is explained on the payslip so employees understand their deductions.
Payroll connects to the rest of your accounts. Salary costs feed your monthly accounting, salary withholding is reported through withholding tax return filing, and employees' own returns can be handled by our individual tax return filing service.
A fixed monthly fee based on the number of employees.
Joiners, leavers, salary structures and changes.
Gross pay, allowances, deductions and net pay.
Section 149 deductions and deposits.
Contributions calculated and paid.
Clear payslips for every employee.
Salary transfer files for your bank.
Quarterly statements and annual certificates.
Cost by department and journal entries.
These create liabilities and employee complaints.
Under-deduction is recoverable from the employer under section 161.
We calculate correctly.Benefits such as cars or housing are taxable under section 13.
We include them.EOBI and social security must follow the new minimum wage.
We update each budget.Salary withholding must be in section 165 statements.
We file quarterly.Employees need salary tax certificates for their returns.
We issue them.Former employees left on the payroll.
We control changes.A fixed monthly cycle agreed with you.
We check your payroll, structures and contributions.
Based on headcount.
Employee data and salary structures loaded.
Calculated, approved by you and paid.
Statements and certificates issued.
Payroll without a dedicated HR team.
Payroll that scales with headcount.
Local payroll compliance.
Developer salaries and benefits.
Large workforces and contributions.
Project-funded staff payroll.
Payroll run by a team that also handles your withholding and tax.
Salary tax calculated and reported correctly.
ACCA and ICAP Chartered Accountant qualifications and an FBR-registered income tax practitioner.
Rates updated when minimum wages change.
Salary data handled with restricted access.
Nothing is paid without your sign-off.
Based on headcount.
Have a question that is not here? Send it to us on WhatsApp and we will reply the same day.
Tell us how many employees you have and how you pay them. We will review your payroll and quote a fixed monthly fee.
Book your free consultationThis page is general information about our services, not tax, legal or financial advice for your specific situation. Laws, rates and deadlines change with each Finance Act and official notification.