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Pakistan payroll compliance by province

Payroll compliance in Khyber Pakhtunkhwa

For employees whose work province is Khyber Pakhtunkhwa, BusinessHRM adds KPESSI at 6% of wages paid by the employer (marked to verify) and checks salaries against the KP minimum wage of Rs 40,000 a month from July 2025 (Rs 36,000 before). There is no KPESSI export file yet: the amounts appear in the contribution register, which exports to CSV.

  • FBR income tax
  • EOBI
  • KPESSI
  • Minimum wage check
  • Gratuity
Start free All Pakistan rules
BusinessHRM Pakistan compliance rules for EOBI at 5% employer and 1% employee of the minimum wage, PESSI at 6% for Punjab, an optional provident fund and Workers' Profit Participation Fund

What changes for employees in KP?

KPESSI: Khyber Pakhtunkhwa Employees Social Security Institution

Rate
6% employer, nothing from the employee (to verify)
Calculated on
wages
File
No dedicated file yet; amounts are in the contribution register CSV

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 KPESSI rate is marked to verify in the pack.

KP at a glance

Social security
KPESSI, 6% employer (to verify)
Minimum wage
Rs 40,000 a month from July 2025
Previous minimum wage
Rs 36,000
Maternity leave
12 weeks on full pay
Export file
Contribution register CSV only
Monthly minimum wage in Khyber Pakhtunkhwa, as loaded
PeriodMinimum wage
Until June 2025Rs 36,000
From July 2025Rs 40,000

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 rules for Khyber Pakhtunkhwa
LeaveEntitlement
Annual14 days, accumulating up to 28
Casual10 days
Sick8 days, accumulating to 16
Maternity12 weeks on full pay

Loaded in the country leave policy (Settings, Leaves, Country leave policy). You can override any entitlement.

How KP is applied to each person

  1. 1In Settings, Country and compliance, set KP on the office addresses in the province, or as the company default.
  2. 2On the People and locations tab, give any employee who works elsewhere their own province. Their override wins over the office.
  3. 3Switch on Tax and contributions in Payroll settings and add each person's CNIC, EOBI and KPESSI numbers on their profile.
  4. 4Run payroll. Each payslip shows income tax and the EOBI employee share; employer contributions appear in the payslip detail and the contribution register.
BusinessHRM Country and compliance People and locations tab showing which country and region rules apply to each employee, with a per-employee override
People and locations: the province that applies to each employee, with a per-person override.

Other provinces

FBR slabs, EOBI and files for Pakistan HR software in Pakistan HR software in Peshawar

KP payroll questions

Does BusinessHRM calculate KPESSI?

Yes, at 6% employer on wages for employees whose province is Khyber Pakhtunkhwa. The rate is marked to verify, and there is no KPESSI export file yet; the amounts are in the contribution register.

What is the KP minimum wage in BusinessHRM?

Rs 40,000 a month from 1 July 2025, up from Rs 36,000. Pay below it is flagged as a warning.

Pay your KP 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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