The process of calculating and disbursing employee compensation each pay cycle.
Payroll is the process of calculating each employee's pay for a period, applying statutory and voluntary deductions, and disbursing the net amount. In Pakistan, a typical monthly payroll cycle includes: attendance consolidation, gross salary calculation (basic + allowances + overtime + bonus), Section 149 income tax calculation, EOBI contribution, provincial social security contribution (PESSI/SESSI/KPESSI/BESSI), provident fund deduction, other deductions (loans, advances), net pay computation, IBFT bank sheet generation, payslip generation, and statutory filings.
Pakistani payroll is more complex than many other jurisdictions because of the province-aware social security system, the Section 149 average-rate income tax methodology, and the variety of acceptable IBFT bank file formats. Manual payroll for even a 50-person company can take 2 to 5 days per month.
Modern payroll software like Peoplifi automates the entire cycle: biometric attendance flows in, statutory compliance is calculated, payslips are generated in English and Urdu, IBFT files are produced per bank format, and monthly/annual filings to FBR, EOBI, and provincial boards are prepared automatically. A 500-person payroll that used to take a week now takes an hour.
Our monthly payroll run processes 320 employees in under 30 minutes end-to-end through Peoplifi.
Peoplifi handles Pakistan payroll, compliance, and HR workflows in one platform.
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