HR Glossary

Pakistan-specific terms (EOBI, PESSI, SESSI, KPESSI, BESSI, FBR Section 149, IBFT, gratuity, provident fund) and global HR concepts (OKR, KPI, ATS, onboarding) — explained in plain English with examples.

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

3

A performance feedback method collecting input from multiple sources — manager, peers, direct reports, self, and sometimes customers — providing a well-rounded view that reduces single-manager bias and is most useful for developmental rather than purely evaluative purposes.

A

Paid yearly vacation leave in Pakistan — a statutory minimum of 14 consecutive days per year after 12 months of continuous service under the Factories Act 1934 and provincial Shops and Establishments Ordinances, often enhanced by employer policy for senior or skilled roles.

Applicant Tracking System — software managing the end-to-end recruiting pipeline from job posting through hire, with candidate management, pipeline tracking, interview scheduling, assessment integration, offer generation, and reporting.

B

Balochistan Employees Social Security Institution — Balochistan's provincial social security authority providing medical, sickness, maternity, injury, and death benefits to private-sector workers in the province, including in mining, fisheries, manufacturing, and services sectors.

Biometric Attendance

An attendance system that verifies employee identity using physiological identifiers — fingerprint, facial geometry, palm print, or iris pattern — eliminating buddy-punching and manual register errors common in card-based or paper-based systems.

C

Short-notice paid leave in Pakistan for unforeseen personal matters — statutory minimum of 10 days per year under the Shops and Establishments Ordinances and the Industrial and Commercial Employment Standing Orders, typically used 1-2 days at a time without long advance planning.

Cost to Company — the total annualised expense an employer incurs per employee in Pakistan, comprising fixed cash, variable pay, statutory contributions, and non-cash benefits.

E

Employees' Old-Age Benefits Institution — Pakistan's federal pension and social-security system for private-sector employees, established under the EOBI Act 1976.

G

A statutory lump-sum end-of-service benefit in Pakistan, calculated at one month's last-drawn basic wages per completed year of service for employees with 12+ months of continuous employment.

The total pre-deduction monthly or annual pay in Pakistan — comprising basic salary plus all fixed allowances (house rent, conveyance, medical, utility, dearness) and any fixed bonuses, before any tax, EOBI, PF, or other deductions are applied.

H

Human Resources Information System — the category of software that centralises and automates an organisation's HR functions including employee records, payroll, attendance, leave, recruitment, performance, and statutory compliance, increasingly delivered through cloud-native modern platforms.

Human Resources Management System — a comprehensive HR software platform broadly synonymous with HRIS but typically emphasising softer people-management functions (performance, learning, engagement) alongside transactional HR (payroll, leave, attendance).

I

Inter Bank Funds Transfer — Pakistan's real-time interbank payment infrastructure operated by 1LINK, used for salary disbursement, vendor payments, and consumer transfers, with seconds-level settlement across every major Pakistani bank.

K

Khyber Pakhtunkhwa Employees Social Security Institution — KP's provincial social security authority providing medical, sickness, maternity, injury, and death benefits to private-sector workers in the province, with mandatory employer registration and monthly contributions.

Key Performance Indicator — a quantifiable metric tracking how effectively an individual, team, or organisation performs against defined objectives, typically watched continuously as ongoing operational health indicators rather than time-bound goals.

L

Leave Encashment

Monetary payment in lieu of unused paid leave — paid annually for surplus carry-forward, at separation as part of full-and-final settlement, or per specific company policy. Subject to Section 149 income tax withholding.

N

The actual take-home pay credited to a Pakistani employee's bank account — calculated as gross salary minus Section 149 income tax, EOBI contribution, PESSI/SESSI contribution where applicable, Provident Fund contribution, and any other authorised deductions.

The mandatory advance-warning window one party must give the other before ending employment in Pakistan — typically one month for confirmed permanent employees under the Standing Orders Ordinance 1968, with longer periods common for senior roles by contract.

O

The structured process of transitioning an employee out of the organisation — covering knowledge transfer, asset return, access revocation, final settlement (salary + gratuity + leave encashment + PF), tax certificate (Form 149), and experience letter.

Objectives and Key Results — a goal-setting framework combining qualitative inspirational objectives with 3-5 quantitative measurable key results, set quarterly at company, team, and individual levels with cascading alignment and 70%-as-success grading.

The structured multi-week process of integrating a new hire into an organisation — spanning pre-boarding, orientation, role-specific training, and 90-day check-ins — to accelerate productivity and reduce first-year attrition.

P

The process of calculating and disbursing employee compensation — encompassing attendance consolidation, gross salary, Section 149 income tax, EOBI, provincial social security, provident fund, deductions, IBFT bank-file generation, payslip distribution, and statutory filings.

A legal document issued to employees each pay period showing complete earnings, deductions, and net pay — required under Pakistan's Payment of Wages Act 1936 and used for loan applications, rental agreements, visa submissions, and personal tax returns.

Performance Review

A formal structured evaluation of an employee's work performance against agreed goals and competencies — historically annual, increasingly shifting to quarterly or continuous-feedback cadences, with outputs informing compensation, promotion, development, and retention decisions.

Punjab Employees Social Security Institution — Punjab's mandatory social-security scheme covering medical care, maternity, sickness, injury, and death benefits for private-sector employees.

Probation Period

The initial trial phase of employment in Pakistan — typically 3 months under the Standing Orders Ordinance 1968 — during which either party can end the relationship with reduced notice, before the employee is confirmed and acquires full statutory benefits.

A company-administered long-term retirement savings trust in Pakistan, with matched employer-and-employee contributions, regulated under the Provident Funds Act 1925 and recognised under the Income Tax Ordinance 2001 for favourable tax treatment.

Paid Time Off — a leave policy combining vacation, sick, and personal days into a single balance employees can use for any purpose, originating in the US and increasingly adopted by Pakistani tech companies and multinationals as an alternative to separated leave categories.

R

The end-to-end process of filling open roles — defining requirements, sourcing candidates, screening, interviewing, reference-checking, extending offers, and closing — sitting at the intersection of talent acquisition, employer marketing, and sales.

S

Section 149 of Pakistan's Income Tax Ordinance 2001 — the legal obligation on every employer to deduct income tax at source from monthly salaries and deposit it with the FBR.

Sindh Employees Social Security Institution — Sindh's provincial social security fund providing medical, maternity, sickness and death benefits to private-sector workers earning up to the prescribed wage ceiling.