# pk-payroll-eobi

## Pakistan — Payroll (Salary Tax + EOBI + Provincial Social Security) — Skill v1.0

> **Scope note:** This skill is the **end-to-end monthly payroll orchestrator** for Pakistan. It does NOT redefine the salary tax brackets — those live in `pk-income-tax` and are applied here for monthly withholding under **Section 149** of the Income Tax Ordinance 2001 (ITO 2001). This skill defines the **sequence**, the **EOBI computation**, the **provincial social security routing**, the **WWF/WPPF treatment**, the **remittance calendar**, and the **year-end reconciliation workflow**.
>
> **Tax year 2025-26 note:** Pakistan's tax year runs **1 July – 30 June**. References to "2025-26" mean the year ending **30 June 2026**. Salary tax brackets are set annually by the Finance Act and are applied via `pk-income-tax`. EOBI rates have remained 5% employer / 1% employee on the federal minimum wage base for an extended period; provincial social security thresholds vary by province and are tracked here as ranges, not point estimates, because they are revised by provincial notification.

## Verified rates & thresholds (accountant-reviewed)

> Reviewed against the cited tax authorities by **Ibrar Ali** on 2026-06-12.
> Items flagged for further clarification are tracked separately and excluded here.
> This block is generated from verified `skill_facts` — edit the facts, not the prose.

### pk-payroll-eobi

- **Employer contribution** — 5% of federal minimum wage  _(Employees' Old-Age Benefits Act 1976)_
- **Employee contribution** — 1% of federal minimum wage  _(Employees' Old-Age Benefits Act 1976)_
- **Contribution base** — Rs. 40,000 per month  _(Federal notification)_
- **Coverage threshold** — Mandatory at ≥ 5 employees  _(EOBI Act 1976)_
- **Monthly contribution (PR-03/PR-04)** — Due 15th of following month  _(EOBI)_
- **SESSI (Sindh)** — 6% of insured worker's wage  _(Sindh Employees' Social Security Ordinance 1965)_
- **PESSI (Punjab)** — 6% of insured worker's wage  _(Punjab adapted 1965 Ordinance)_
- **KPESSI (KP)** — 6% (verify)  _(KP adapted 1965 Ordinance)_
- **BESSI (Balochistan)** — 6% (verify)  _(Balochistan adapted 1965 Ordinance)_
- **Insured-worker threshold** — Provincial minimum wage (PKR 40,000 for Punjab, Sindh, KP; PKR 37,000 for Balochistan)  _(Provincial notification)_
- **Routing** — To the province where the establishment/worker is employed  _(Provincial Ordinances)_
- **Monthly withholding mechanic** — Estimated annual salary tax / 12 (salary brackets from pk-income-tax)  _(ITO 2001 §149)_
- **§165 monthly statement** — 165 is filed quarterly and last date is 20 of the month following the quarter  _(ITO 2001 §165)_
- **Annual reconciliation + employee certificate** — By 31 July (Rule 42 certificate to each employee)  _(ITO 2001 §149; Rule 42)_
- **Workers Welfare Fund (WWF)** — 2% of accounting profit or taxable income, whichever is higher.  _(Workers Welfare Fund Ordinance 1971)_
- **Workers Profit Participation Fund (WPPF)** — 5% of profit before tax. Applies if: 50+ employees, OR paid-up capital/fixed assets exceed statutory provincial thresholds.  _(Companies Profits (Workers' Participation) Act 1968)_

## Section 1 — Quick reference: contribution table

The order matters because **only employee EOBI is deductible from salary**, and **none of the provincial social security contributions reduce the employee's chargeable salary for Section 149 purposes** unless paid by the employee (provincial social security is typically employer-only).

**Contribution table**  _(—)_

| Component | Rate | Base | Paid by | Effect on salary tax base |
| --- | --- | --- | --- | --- |
| **Salary tax (Sec 149 ITO 2001)** | Slab rates — see `pk-income-tax` | Annualised taxable salary | Employee (withheld at source) | — |
| **EOBI — Employee** | 1% | Federal minimum wage (currently Rs. 40,000/month – verify current notification) | Employee | **No reduction** of Section 149 base (statutory deduction, not allowed against salary income) |
| **EOBI — Employer** | 5% | Federal minimum wage | Employer | Employer cost only |
| **SESSI (Sindh)** | 6% | Wage of insured worker (workers earning ≤ provincial threshold) | Employer-only | Employer cost only |
| **PESSI (Punjab)** | 6% | Wage of insured worker (subject to Punjab ESSI Ordinance threshold) | Employer-only | Employer cost only |
| **KPESSI (Khyber Pakhtunkhwa)** | 6% (verify current notification) | Wage of insured worker | Employer-only | Employer cost only |
| **BESSI (Balochistan)** | 6% (verify current notification) | Wage of insured worker | Employer-only | Employer cost only |
| **WWF (Workers Welfare Fund)** | 2% | Taxable profit of company | Employer-only | Corporate-tax-side; not a payroll deduction |
| **WPPF (Workers Profit Participation Fund)** | 5% | Profit before tax (companies with 50+ employees, or threshold under provincial law) | Employer-only | Distributed to workers; not a salary-tax-side deduction |

> **Conservative default:** When in doubt whether a provincial social security scheme applies (because the employee's wage hovers around the provincial threshold), **include the contribution** and flag for reviewer. Under-contribution triggers provincial inspector recovery + penalty; over-contribution is harmless and can be reclaimed on later reconciliation.

- **Provincial routing rule of thumb** — the provincial social security institution of the **province where the establishment is located / where the worker is employed** receives the contribution — not the province of the worker's domicile.

## Section 2 — Required inputs & refusal catalogue

### 2.1 Inputs required to run a Pakistan payroll

**Inputs required to run a Pakistan payroll**

| Input | Source | Notes |
| --- | --- | --- |
| NTN (National Tax Number) — employer | FBR | Required on every Section 149 statement |
| CNIC of each employee | Employee record | Used as the FBR identifier where no NTN is held |
| NTN of each employee (if held) | Employee record | Required for higher earners |
| Province where the establishment is registered | Employer record | Determines SESSI / PESSI / KPESSI / BESSI routing |
| EOBI registration number | EOBI portal | Required if establishment has ≥ 5 employees (lower in some sectors) |
| Provincial social security registration | Provincial portal | Separate registration per province |
| Gross monthly emolument breakdown | HR / contract | Basic + allowances + perquisites |
| Perquisites in cash and kind | Accounts payable | Must be valued under Section 13 ITO 2001 |
| Federal minimum wage in force (for EOBI) | Federal notification | Verify current value — track Finance Act and notifications |
| Provincial wage threshold for ESSI coverage | Provincial notification | Determines whether the worker is "insured" |
| Whether employer has ≥ 50 employees (for WPPF) | HR headcount | WPPF applies only above the threshold |
| Whether employer is a company subject to WWF | Corporate tax status | WWF is corporate-side, computed in the tax return |

### 2.2 Refusal catalogue — out of scope

**Refusal catalogue — out of scope**

| Scenario | Action |
| --- | --- |
| Non-resident employees / split-pay / treaty relief | Refer to a qualified Pakistan tax consultant — treaty analysis required |
| Expatriates on Pakistan assignment with home-country payroll continuation | Out of scope; bespoke |
| Employee stock options, RSUs, share-based payments | Out of scope — Section 14 ITO valuation required by specialist |
| Termination payments, golden handshake, gratuity above statutory exemption | Flag — Section 12(6) and Sixth Schedule exemptions need legal review |
| Backdated salary spanning two tax years (Pakistan tax year ends 30 June) | Refer to specialist — re-opening of prior-year Section 165 statement may be needed |
| Provident Fund (recognised vs unrecognised) treatment | Out of scope here — refer to specialist; the Sixth Schedule rules on PF contributions and accumulated balances are complex |
| Directors' fees not run through payroll | Out of scope — covered by separate withholding under ITO Part III |
| Casual / piece-rate workers under the Industrial Relations Acts | Flag for reviewer — provincial coverage differs |

## Section 3 — Salary tax (Section 149 ITO 2001) — monthly withholding

### 3.1 Statutory basis

- **Statutory basis** — **Section 149 of the Income Tax Ordinance 2001** requires every employer paying salary to deduct tax at the time of payment, on the basis of the **estimated annual salary** for the tax year (1 July – 30 June). The bracket rates are set in the **First Schedule, Part I, Division I** of the ITO 2001, updated each year by the Finance Act. **Do not embed the rates here** — pull them from `pk-income-tax`, which is the canonical source.  _(Section 149 of the Income Tax Ordinance 2001)_

### 3.2 Monthly withholding mechanic

- **Monthly withholding mechanic** — 1.  Estimate annual taxable salary: AnnualTaxable = (Gross monthly × number of months remaining) + perquisites for the year + bonuses expected in the year − exemptions (Sixth Schedule items, e.g. some allowances) − allowable deductions for salaried persons (see pk-income-tax) 2.  Apply the First Schedule salary brackets (from pk-income-tax) to AnnualTaxable → AnnualTax 3.  Subtract any tax credits the employee has notified to the employer (Section 60 to 65 credits — e.g. donations under Sec 61, investment in approved pension fund under Sec 63, etc.; only those notified in writing) → AnnualTaxNet 4.  MonthlyWithholding = AnnualTaxNet / 12 (or / remaining months for a mid-year joiner) 5.  Adjust for under/over-withholding from earlier months in the same tax year — Section 149(3) permits this.

> **Note on bonuses and arrears:** Lump-sum bonuses, arrears and one-off payments must be **annualised into the estimated annual salary** and reflected in the recalculated monthly withholding from the month of payment forward — not taxed at marginal rate in a single month. This avoids over-withholding spikes.

### 3.3 Section 165 monthly statement

- **Filing requirement** — Every employer must file a **quarterly statement of tax withheld under Section 165** (and the related Income Tax Rules) by the **20th of the month following the quarter**, via the **FBR IRIS portal**. The statement covers all withholding categories, including Section 149 salary tax.

**Section 165 monthly statement fields**

| Field | Content |
| --- | --- |
| Employer NTN | Withholding agent identifier |
| Employee details | Name, CNIC, NTN (if any), gross salary, tax withheld |
| Payment date | For each salary payment |
| Tax challan / CPR number | Proof of deposit with FBR |

### 3.4 Annual employer certificate

- **Annual employer certificate obligations** — By **31 July** following the close of the tax year (30 June), every employer must: 1. File the **annual Section 149 / 165 reconciliation** on IRIS. 2. Issue each employee a **Certificate of Tax Collected/Deducted (Form prescribed under Rule 42 of the Income Tax Rules 2002)** showing gross salary, tax deducted by month, and CPR references — the employee uses this to file their own annual return.  _(Rule 42 of the Income Tax Rules 2002)_

### 3.5 Late-payment / late-statement penalties (summary)

**Late-payment / late-statement penalties (summary)**

| Default | Consequence |
| --- | --- |
| Late deposit of withheld tax | Default surcharge under Sec 205 (KIBOR + 3%) + recovery |
| Late filing of Section 165 statement | Penalty under Sec 182 — PKR 5,000 per day of default, subject to maxima |
| Failure to deduct | Employer personally liable for the tax + default surcharge (Sec 161) |

Full detail in `pk-income-tax`.

## Section 4 — EOBI — federal pension scheme

### 4.1 Statutory basis

- **Statutory basis** — **Employees' Old-Age Benefits Act 1976** (federal). Administered by the **Employees' Old-Age Benefits Institution (EOBI)**, an autonomous federal body. After the 18th Constitutional Amendment, social security was devolved to the provinces, but **EOBI continues to operate federally** pending substitute provincial pension legislation; courts have repeatedly upheld this. Treat EOBI as **federal and mandatory** in all four provinces and Islamabad Capital Territory.  _(Employees' Old-Age Benefits Act 1976)_

### 4.2 Coverage threshold

**Coverage threshold table**

| Establishment size | EOBI applicability |
| --- | --- |
| ≥ 5 employees | **Mandatory** registration and contribution |
| < 5 employees in some specified industries (e.g. shops & establishments under provincial law) | May still be covered — verify under the EOBI Act and current notifications |
| Once covered, always covered | Even if headcount later falls below 5, registration is retained |

### 4.3 Contribution rates and base

**Contribution rates and base**

| Party | Rate | Base |
| --- | --- | --- |
| Employer | **5%** | Federal minimum wage (notified periodically — **verify current notification each cycle**) |
| Employee | **1%** | Federal minimum wage |

> **Important — the base is the minimum wage, not the actual salary.** EOBI contributions are computed on the **prevailing federal minimum wage** (as notified), capped at that figure regardless of how much the employee actually earns. Track the current notification: at recent notifications the minimum wage figure was PKR 32,000 → PKR 37,000 → PKR 40,000 (and may be revised again). **Confirm the figure in force in the month of the contribution.**

### 4.4 Computation

- **EOBI computation formula** — EOBI Employer monthly  = 5% × MinimumWage EOBI Employee monthly  = 1% × MinimumWage  (deducted from employee's salary) Total EOBI monthly     = 6% × MinimumWage  per insured employee

### 4.5 Filing and payment

**Monthly EOBI contribution (PR-03 challan + PR-04 schedule of insured persons)**

| Item | Recipient | Deadline | Channel |
| --- | --- | --- | --- |
| Monthly EOBI contribution (PR-03 challan + PR-04 schedule of insured persons) | EOBI via designated banks | **15th of the following month** | EOBI online portal `eobi.gov.pk` + bank challan |

### 4.6 Penalty

- **EOBI penalty** — Late payment attracts a **monthly default surcharge** under the EOBI Act + recovery as arrears of land revenue. Long-running default also exposes directors personally under Section 12 EOBI Act.  _(Section 12 EOBI Act)_

## Section 5 — Provincial social security schemes

Each province operates its own **Employees Social Security Institution** under provincial law (post-18th Amendment). The schemes provide **medical care, sickness benefits, maternity, injury, and death benefits** to "insured" workers — i.e. workers whose monthly wage is at or below a provincial threshold.

### 5.1 The four provincial institutions

**The four provincial institutions**

| Province | Institution | Statute | Threshold (verify current notification) | Rate (employer-only) |
| --- | --- | --- | --- | --- |
| **Sindh** | **SESSI** (Sindh Employees Social Security Institution) | Provincial Employees' Social Security Ordinance 1965 as adapted by Sindh | Wage threshold: PKR 40,000/month (Punjab, Sindh, KP); PKR 37,000/month (Balochistan) — track current provincial notifications | **6%** of wage of insured employee |
| **Punjab** | **PESSI** (Punjab Employees Social Security Institution) | Provincial Employees Social Security Ordinance 1965 (Punjab Adapted) | Punjab-notified threshold — track current PESSI notification | **6%** of wage of insured employee |
| **Khyber Pakhtunkhwa** | **KPESSI** | KP adaptation of the 1965 Ordinance | KP-notified threshold | **6%** (verify) |
| **Balochistan** | **BESSI** | Balochistan adaptation of the 1965 Ordinance | Balochistan-notified threshold | **6%** (verify) |

> **Threshold caveat:** the wage threshold for "insured person" status is **revised by provincial notification**. The rule is: if the employee's **gross wage ≤ threshold in force**, the worker is an "insured person" and the employer must contribute **6% of that worker's actual wage** to the provincial institution. Workers above the threshold are typically excluded (but check the latest notification — some provinces have extended coverage to all workers).

### 5.2 Computation

- **Provincial social security computation** — ProvincialSS_monthly = 6% × Wage(insured employee) (per worker, for each insured worker)
- **Employer-only, no reduction, routing** — - **Employer-only** — there is no employee share. - **Does NOT reduce the employee's salary tax base** because it is not deducted from the employee. - Routed to the **province where the establishment is located** — i.e. the place of employment, not the worker's domicile.

### 5.3 Filing and payment

**Filing and payment table**

| Item | Deadline | Channel |
| --- | --- | --- |
| Monthly contribution + return of insured persons | Typically **by the 15th** of the following month (verify per-province) | Provincial ESSI portal + designated banks |
| Annual reconciliation | Per provincial rules — typically by 31 July | Provincial ESSI portal |

### 5.4 Penalty

Each province has its own penalty regime, typically:

- Default surcharge at a notified monthly rate.
- Recovery by the provincial Social Security Department as arrears of land revenue.
- Criminal liability of directors / partners under the 1965 Ordinance for sustained default.

### 5.5 Inter-province workers

- **Inter-province workers** — If an establishment has branches in more than one province, contributions are made to **each provincial institution for the workers employed at the establishment in that province**. There is no cross-province credit — each province collects on its own workers.

## Section 6 — Other employer-side deductions: WWF and WPPF

These are **corporate-side** levies, not strictly payroll, but they are commonly run through the HR / finance interface because the WPPF distribution flows to the workers.

### 6.1 Workers Welfare Fund (WWF)

**Workers Welfare Fund (WWF) table**

| Element | Detail |
| --- | --- |
| Statute | **Workers Welfare Fund Ordinance 1971** (federal; provincial variants also enacted post-18th Amendment — see caveat) |
| Rate | **2% of accounting profit or taxable income, whichever is higher** (companies) |
| Base | Accounting profit or taxable income of the establishment, whichever is higher |
| Paid by | **Employer only** — not deducted from employee |
| Routed to | Federal WWF or provincial WWF, depending on the establishment's jurisdiction and current case law |
| Frequency | Annual — assessed via the corporate tax return |

> **Jurisdictional caveat:** Post-18th Amendment, Sindh, Punjab, KP and Balochistan enacted their own **Provincial Workers Welfare Fund** statutes. Supreme Court of Pakistan judgments (notably *Workers Welfare Funds v Various* line of cases) have produced complex routing rules between the federal and provincial WWFs depending on the period and the entity. **Defer the WWF jurisdiction question to the corporate tax skill / a qualified Pakistani tax consultant** — flag any direct WWF computation request to a reviewer.

### 6.2 Workers Profit Participation Fund (WPPF)

**Workers Profit Participation Fund (WPPF) table**

| Element | Detail |
| --- | --- |
| Statute | **Companies Profits (Workers' Participation) Act 1968** |
| Threshold | Companies with **50+ employees**, OR where paid-up capital/fixed assets exceed statutory provincial thresholds |
| Rate | **5% of profit before tax** |
| Distribution | Distributed to eligible workers in accordance with the Act + Scheme (subject to per-worker ceiling) |
| Residual | Any undistributed balance is transferred to the WWF |
| Paid by | **Employer only** |
| Frequency | Annual — within nine months of close of accounting year (per the Act and Scheme) |

> **Workers profit participation interacts with WWF** — undistributed WPPF flows to WWF. This linkage is corporate-tax-side and is handled in the corporate compliance skill, not here.

## Section 7 — Worked example

**Scenario:** Software developer, **Karachi (Sindh) resident**, employed at a Karachi-based fintech with 35 employees. Gross monthly emolument **PKR 250,000**. Pakistani citizen, CNIC and NTN held. Employer is EOBI-registered. Tax year 2025-26.

**Assumed inputs (verify each from current notifications and `pk-income-tax`):**

- Federal minimum wage in force for EOBI: **PKR 40,000/month** (placeholder — verify current notification)
- SESSI wage threshold for "insured person": **PKR 50,000/month** (placeholder — verify Sindh notification). At PKR 250,000/month the employee is **above the threshold → not an insured person → no SESSI contribution payable**.
- Salary tax brackets: pulled from `pk-income-tax` (do **not** rely on the numbers below for any other purpose).
- No bonus or perquisites in this month.

### A — Salary tax (Section 149) — illustration only

- **Salary tax illustration** — Annual taxable salary = 250,000 × 12         = 3,000,000 Apply 2025-26 First Schedule salary brackets (from pk-income-tax). For illustration only (DO NOT use as authoritative — pk-income-tax governs): Slice 1:   0 –   600,000        @  0%     =        0 Slice 2:   600,001 – 1,200,000  @  5%     =   30,000 Slice 3:   1,200,001 – 2,200,000 @ 15%    =  150,000 Slice 4:   2,200,001 – 3,000,000 @ 25%    =  200,000 Annual tax (illustrative)                  =  380,000 Monthly withholding (illustrative)         =   31,667

> The bracket numbers above are **illustrative placeholders** — the real computation MUST be done by `pk-income-tax`, which carries the Finance Act 2025 rates.

### B — EOBI

- **EOBI computation for example** — EOBI Employee (1% × 40,000)        =   400 EOBI Employer (5% × 40,000)        = 2,000

### C — SESSI (Sindh)

Employee's wage PKR 250,000 > assumed threshold PKR 50,000 → **not insured** → **no SESSI contribution**.

If the same employee earned PKR 40,000:
```
SESSI Employer (6% × 40,000)       = 2,400      (employer-only)
```

### D — WWF / WPPF

Not run through this payslip — computed annually on profit-before-tax in the corporate tax return.

### E — Payslip summary (illustrative)

**Payslip summary**

| Item | PKR |
| --- | --- |
| Gross monthly emolument | 250,000 |
| − Salary tax withheld (Sec 149) | (31,667) *illustrative — pk-income-tax governs* |
| − EOBI employee | (370) |
| **Net pay** | **217,963** |

### F — Remittances arising from this payslip

**Remittances table**

| Recipient | Amount PKR | Deadline |
| --- | --- | --- |
| FBR (Section 149 salary tax) | 31,667 | Deposit by **15th of following month** via challan; Section 165 statement by **20th of the month following the quarter** on IRIS |
| EOBI (employee 400 + employer 2,000) | 2,400 | **15th of following month** — PR-03 / PR-04 via EOBI portal and bank |
| SESSI | n/a | — |

## Section 8 — Filing and payment calendar

### 8.1 Monthly cycle

**Monthly cycle table**

| Item | Recipient | Deadline | Channel |
| --- | --- | --- | --- |
| **Salary tax deposit** | FBR | At time of payment (challan deposited promptly — typically **within 7 days of withholding**; verify current rule) | Bank challan (CPR) |
| **Section 165 quarterly statement** | FBR | **20th of the month following the quarter** | FBR **IRIS** portal |
| **EOBI contribution + PR-04 schedule** | EOBI | **15th of the following month** | EOBI portal + designated bank |
| **Provincial ESSI contribution** | SESSI / PESSI / KPESSI / BESSI | Typically **15th of the following month** (verify per-province) | Provincial ESSI portal + designated bank |

### 8.2 Annual cycle

**Annual cycle table**

| Item | Deadline | Notes |
| --- | --- | --- |
| **Annual Section 149 / 165 reconciliation** | **31 July** following tax-year-end 30 June | Filed on IRIS — must reconcile sum of monthly statements to annual withholding |
| **Employee tax deduction certificate** (Rule 42) | **By the time of the annual statement** | Issued to each employee for use in their own return |
| **EOBI annual reconciliation** | Per EOBI rules | Reconcile sum of monthly PR-04 schedules to insured headcount × 12 |
| **Provincial ESSI annual reconciliation** | Per provincial notification | Typically by 31 July |
| **WWF (corporate)** | With corporate tax return | Out of scope here |
| **WPPF distribution** | **Within 9 months of accounting-year-end** | Out of scope here; residual to WWF |

### 8.3 Penalty summary

**Penalty summary table**

| Default | Consequence |
| --- | --- |
| Late salary tax deposit | Default surcharge under Sec 205 ITO 2001 (KIBOR + 3%) |
| Late Section 165 statement | Sec 182 penalty — PKR 5,000/day, subject to caps |
| Failure to deduct salary tax | Employer personally liable (Sec 161) + surcharge |
| Late EOBI | Default surcharge per EOBI Act + recovery as arrears of land revenue |
| Late provincial ESSI | Per provincial regime — surcharge + recovery |

## Section 9 — Conservative defaults

**Conservative defaults table**

| Situation | Conservative position |
| --- | --- |
| EOBI coverage uncertain (establishment hovering around 5 employees) | Treat as covered; register on EOBI portal; under-contribution risk outweighs the small monthly cost |
| Provincial ESSI threshold ambiguous | Treat employee as insured if wage near threshold; contribute and reclaim later if unnecessary |
| Minimum wage notification updated mid-month | Apply the **higher** rate from the date of notification; do not back-spread |
| Bonus or arrears paid in one month | Annualise into the Sec 149 estimated annual salary and recompute monthly withholding from that month forward — do **not** apply marginal rate to the lump sum in a single month |
| Employee CNIC missing | Withhold normally but **flag immediately** — Section 165 statement will reject without CNIC |
| Employee NTN missing (high earner) | Compute tax normally; flag to HR to enrol the employee on IRIS — required for higher-earner statements |
| Mid-year joiner | Estimate the annual salary on a pro-rata basis (months remaining × monthly gross + expected perquisites) and divide the tax by the remaining months |
| Mid-year leaver | Issue interim Rule 42 certificate covering the period of employment, reconcile via Section 149(3) adjustment in the leaver's final month |
| Worker in Punjab establishment but resident in Sindh | Contribute to **PESSI** (province of employment), not SESSI |
| Multi-province establishment | Contribute to each provincial ESSI for the workers physically employed there |
| WWF / WPPF computation request | Refer to corporate tax skill / reviewer — jurisdictional routing is complex post-18th Amendment |
| Provident Fund deduction | Refer to specialist — Sixth Schedule treatment depends on recognition status |
| Salary paid in foreign currency | Convert to PKR at the SBP rate on payment date; document the rate |

## Section 10 — Sources

**Sources table**

| Source | Reference |
| --- | --- |
| Income Tax Ordinance 2001 — Section 149 (deduction of tax from salary) | FBR |
| Income Tax Ordinance 2001 — Section 165 (statement of tax collected or deducted) | FBR |
| Income Tax Ordinance 2001 — First Schedule Part I (salary brackets) | FBR — applied via `pk-income-tax` |
| Income Tax Rules 2002 — Rule 42 (employee tax deduction certificate) | FBR |
| Employees' Old-Age Benefits Act 1976 | EOBI |
| EOBI portal | https://eobi.gov.pk |
| Provincial Employees' Social Security Ordinance 1965 (as adapted by Sindh, Punjab, KP, Balochistan) | Provincial gazettes |
| Sindh Employees Social Security Institution (SESSI) | https://sessi.gos.pk |
| Punjab Employees Social Security Institution (PESSI) | https://pessi.punjab.gov.pk |
| Khyber Pakhtunkhwa Employees Social Security Institution (KPESSI) | KP provincial portal |
| Balochistan Employees Social Security Institution (BESSI) | Balochistan provincial portal |
| Workers Welfare Fund Ordinance 1971 + provincial WWF statutes | Federal / provincial gazettes |
| Companies Profits (Workers' Participation) Act 1968 (WPPF) | Federal gazette |
| FBR IRIS portal | https://iris.fbr.gov.pk |
| Companion skill — Pakistan income tax (salary brackets, slabs, tax credits) | `pk-income-tax` |
| Companion skill — Pakistan sales tax | `pakistan-sales-tax` |
| Foundation skill — global workflow base | `foundation` |

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*This is not tax advice. All outputs must be reviewed by a qualified Pakistani payroll professional or tax consultant before any payslip is issued or any remittance is made.*

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