Pakistan payroll compliance by province
Payroll compliance in Islamabad Capital Territory
For employees whose work location is the Islamabad Capital Territory, BusinessHRM deducts no provincial social security, because ICT has no provincial scheme, and applies EOBI and FBR tax as elsewhere. It checks salaries against the ICT minimum wage (Rs 40,000 a month, Rs 40,700 from 1 July 2026, to verify) and applies the Maternity and Paternity Leave Act 2023: 180, 120 or 90 days' maternity leave for the first, second and third child and 30 days' paternity leave, up to three times.
- FBR income tax
- EOBI
- Minimum wage check
- Gratuity

What changes for employees in Islamabad?
There is no provincial employees social security institution for the Islamabad Capital Territory, so no social security line appears on payslips for people working there.
Federal rules that apply as everywhere in Pakistan: FBR salary tax slabs, EOBI at 5% employer and 1% employee of the minimum wage, gratuity at 30 days' wages per completed year, 9 hours a day and 48 a week with overtime at double rate, and Pakistan's public holidays.
- The 2023 Act's scope for private employers is marked to verify in the pack.
Islamabad at a glance
- Social security
- No provincial scheme
- Minimum wage
- Rs 40,000; Rs 40,700 from July 2026
- Maternity leave
- 180 / 120 / 90 days by child
- Paternity leave
- 30 days, up to 3 times
- Export files
- FBR and EOBI files as for all of Pakistan
| Period | Minimum wage |
|---|---|
| Until June 2025 | Rs 37,000 |
| July 2025 to June 2026 | Rs 40,000 |
| From July 2026 | Rs 40,700 (to verify) |
Pay below the minimum wage raises a warning on the salary screen and in the payroll pre-check. It never blocks a run. You can override any figure from a date.
| Leave | Entitlement |
|---|---|
| Annual | 14 days, accumulating up to 28 |
| Casual | 10 days |
| Sick | 8 days, accumulating to 16 |
| Maternity | 180 days (first child), 120 (second), 90 (third), full pay |
| Paternity | 30 days on full pay, up to 3 times in service |
Loaded in the country leave policy (Settings, Leaves, Country leave policy). You can override any entitlement.
How Islamabad is applied to each person
- 1In Settings, Country and compliance, set Islamabad on the office addresses in the province, or as the company default.
- 2On the People and locations tab, give any employee who works elsewhere their own province. Their override wins over the office.
- 3Switch on Tax and contributions in Payroll settings and add each person's CNIC and EOBI number on their profile.
- 4Run payroll. Each payslip shows income tax and the EOBI employee share; employer contributions appear in the payslip detail and the contribution register.

Islamabad payroll questions
Is social security deducted for employees in Islamabad?
No. Islamabad Capital Territory has no provincial employees social security scheme, so BusinessHRM calculates none. EOBI still applies.
What maternity leave does BusinessHRM apply in Islamabad?
Under the Maternity and Paternity Leave Act 2023: 180 days for the first child, 120 for the second and 90 for the third, on full pay, plus 30 days' paternity leave up to three times.
Pay your Islamabad team with the province rules applied
Start free, set the province on your office, and preview a pay run before anything is paid or filed.
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