Pakistan payroll compliance by province
Payroll compliance in Punjab
For employees whose work province is Punjab, BusinessHRM adds PESSI at 6% of wages paid by the employer, checks salaries against the Punjab minimum wage of Rs 40,000 a month (Rs 1,538.46 a day), and from 1 July 2026 gives 18 days' annual leave under the Punjab Labour Code 2026 (14 days before that). It builds a PESSI contribution schedule for each pay run alongside the FBR and EOBI files.
- FBR income tax
- EOBI
- PESSI
- Minimum wage check
- Gratuity
What changes for employees in Punjab?
PESSI: Punjab Employees Social Security Institution
- Rate
- 6% employer, nothing from the employee
- Calculated on
- wages
- File
- Punjab PESSI contribution schedule (CSV) for each run
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 18-day rule is dated 1 July 2026 as a placeholder and marked to verify against the gazetted Punjab Labour Code.
- No wage ceiling for PESSI coverage is set in the pack. Add one in Tax and contributions if your institution confirms it.
Punjab at a glance
- Social security
- PESSI, 6% employer
- Minimum wage
- Rs 40,000 a month from July 2025
- Daily minimum wage
- Rs 1,538.46
- Annual leave
- 18 days from 1 July 2026 (14 before)
- Export file
- PESSI contribution schedule
| Period | Minimum wage |
|---|---|
| Until June 2025 | Rs 37,000 |
| From July 2025 | Rs 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 | Entitlement |
|---|---|
| Annual | 14 days until June 2026; 18 days from 1 July 2026 (to verify), carry forward up to 30 |
| Casual | 10 days, not carried forward |
| Sick | 8 days, accumulating to 16 |
| Maternity | 12 weeks on full pay |
Loaded in the country leave policy (Settings, Leaves, Country leave policy). You can override any entitlement.
How Punjab is applied to each person
- 1In Settings, Country and compliance, set Punjab 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, EOBI and PESSI numbers 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.
Other provinces
- Sindh SESSI 6% employer
- Khyber Pakhtunkhwa KPESSI 6% employer
- Balochistan BESSI 6% employer
- Islamabad Capital Territory No provincial social security
FBR slabs, EOBI and files for Pakistan HR software in Pakistan HR software in Lahore HR software in Rawalpindi HR software in Faisalabad HR software in Multan
Punjab payroll questions
How is PESSI calculated in BusinessHRM?
At 6% of the insured worker's wages, paid by the employer only, for every employee whose work province is Punjab. Any employee can be marked as not covered, and you can set a wage ceiling above which employees are not covered.
What is the minimum wage in Punjab in BusinessHRM?
Rs 40,000 a month from 1 July 2025 (Rs 37,000 before). Salaries below it raise a warning on the salary screen and in the payroll pre-check, without blocking the run.
Does BusinessHRM apply the Punjab Labour Code 2026 leave?
Yes, as loaded: 18 days' annual leave from 1 July 2026, with casual and sick leave unchanged at 10 and 8 days. The date is a placeholder marked to verify, and you can override it.
Pay your Punjab team with the province rules applied
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