HR Glossary

Pakistan-specific terms (EOBI, PESSI, Section 149, IBFT) and global HR concepts explained in plain English.

3 A B C E G H I K L N O P R S

3

Feedback collected from an employee's manager, peers, direct reports, and often self — a full-circle view.

A

Paid yearly vacation leave, typically 14 working days after one year of service in Pakistan, guaranteed by the Factories Act 1934 and provincial Shops Ordinances.

Applicant Tracking System — software that manages the recruiting pipeline from job posting to hire.

B

Balochistan Employees Social Security Institution — Balochistan's provincial social security body for private-sector workers.

Biometric Attendance

An attendance system that verifies employee identity using fingerprint, face, or iris recognition.

C

Short-notice paid leave for unforeseen personal matters, usually 10 days per year in Pakistan.

Cost to Company — the total annual expense an employer incurs per employee, including salary, benefits, and statutory contributions.

E

Employees' Old-Age Benefits Institution — Pakistan's federal pension system for private-sector employees.

G

A statutory lump-sum benefit paid to employees on termination after minimum qualifying service in Pakistan.

The total pre-tax salary, including basic pay and all allowances, before any deductions.

H

Human Resources Information System — software that manages employee data, payroll, and HR workflows.

Human Resources Management System — broadly synonymous with HRIS; a comprehensive HR software platform.

I

Inter Bank Funds Transfer — Pakistan's real-time interbank payment system operated by 1LINK.

K

Khyber Pakhtunkhwa Employees Social Security Institution — KP's provincial social security body.

Key Performance Indicator — a measurable value showing how effectively an individual or team is achieving objectives.

L

Leave Encashment

Monetary payment in lieu of unused paid leave, usually at separation or year-end per company policy.

N

The amount an employee actually receives after all statutory and voluntary deductions.

The advance warning period one party must give before ending employment, set by contract or statute.

O

The structured process of separating an employee from the organisation, including F&F and asset return.

Objectives and Key Results — a goal-setting framework combining ambitious objectives with measurable key results.

The structured process of integrating a new hire into the organisation during their first weeks.

P

The process of calculating and disbursing employee compensation each pay cycle.

A document detailing an employee's earnings, deductions, and net pay for a given pay period.

Performance Review

A formal evaluation of an employee's work performance, typically conducted annually or semi-annually.

Punjab Employees Social Security Institution — provincial social security for Punjab-based employees.

Probation Period

An initial employment period during which employer and employee evaluate fit, typically 3 to 6 months.

A company-managed retirement savings fund with matched employer contributions, regulated under the Provident Funds Act 1925.

Paid Time Off — a combined leave category merging vacation, sick, and personal days into one balance.

R

The process of attracting, sourcing, screening, and hiring candidates to fill open roles.

S

Section 149 of Pakistan's Income Tax Ordinance 2001 — employer's obligation to deduct income tax at source on salaries.

Sindh Employees Social Security Institution — the Sindh counterpart to PESSI.