Beyond income tax, Pakistani payroll has to handle statutory deductions — most commonly EOBI and provident fund. Getting these right every month is part of staying compliant and keeping employees’ trust.
What is EOBI?
The Employees’ Old-Age Benefits Institution (EOBI) provides pension and old-age benefits. Registered employers contribute for eligible employees, and a portion is deducted from wages, according to the prescribed rates. The key point for payroll: it must be applied consistently and recorded.
What is a provident fund?
A provident fund is a savings scheme where both employer and employee typically contribute a set percentage of salary each month. The employee receives the accumulated balance (with any returns) on leaving or retirement.
Why these break in manual payroll
- Rates and eligibility get applied inconsistently across months.
- New joiners and leavers are missed.
- There’s no clean record when an audit or an employee query arrives.
How to automate them
Payroll software lets you configure the rules once and then applies EOBI and provident fund automatically on every run, for every eligible employee, with a full record behind it. That removes the month-to-month guesswork.
PayTime applies statutory deductions automatically alongside FBR income tax, and produces itemised payslips that show each deduction clearly. See the features or get in touch.
Confirm current EOBI and provident-fund rates and eligibility against the latest official rules; this is a general guide, not legal advice.
