How to Automate Payroll for 10-100 Employees in Pakistan

Payroll in Pakistan means managing EOBI contributions, PESSI (in Punjab), income tax deductions, and gratuity — all before you write a single payslip. FinovaOS gives you a clean payroll workspace where you set the deduction lines up once and run the same payroll every month with minimal manual work.

Pakistan Payroll Basics

• ✓EOBI: Employee 1% + Employer 5% of minimum wage — standard fixed contribution
• ✓PESSI (Punjab): Rate applied on basic salary for provincial employees
• ✓Income Tax: Salaried individuals taxed per annual FBR slabs
• ✓Gratuity: 1 month salary per year of service (for confirmed employees)
• ✓Provident Fund: Optional — usually 8-10% each from employee and employer

Step 1: Set Up Employees in FinovaOS

Go to HR → Employees → Add Employee. Enter their basic salary, allowances (House Rent, Medical, Transport), CNIC, NTN (if applicable), and bank account. Once set up, each employee's salary structure is reused every payroll cycle.

Step 2: Configure Deduction Lines

On each employee, add the deduction lines you need — EOBI, PESSI, income tax, provident fund, loan repayment. You set the amount or percentage once and FinovaOS applies it on every payroll run. Statutory rate changes only need a single update on the deduction line.

Step 3: Run Monthly Payroll

Go to HR → Payroll → Run Payroll. Select the month, review each employee's gross, deductions and net, and process. FinovaOS produces the payslips and posts the salary journal entry to your accounts.

Step 4: Pay Salaries and Record Receipts

Export the payroll summary and use it to run your bank's bulk salary transfer, or pay individually. Mark each salary as paid inside FinovaOS to keep employee ledgers and payables in sync.

Step 5: Year-End Reports for Tax

At year end, run the annual salary summary for each employee — total gross, total income tax deducted, EOBI contributions — and hand it to your tax consultant for FBR filings.