Payroll in Pakistan: A Complete Guide

With over 230 million people and a rapidly growing economy, Pakistan is becoming one of South Asia’s most important business hubs. If you’re running a business here, managing payroll correctly is more important than ever to stay on the right side of tax laws, labour regulations, and social security rules. Many companies are turning to payroll outsourcing in Pakistan to simplify their processes, reduce costly mistakes, and avoid penalties. As of 2025, keeping up with employee benefits like provident fund contributions, social security payments, and accurate tax deductions is essential for smooth operations.

This guide will walk you through the key payroll processes, typical outsourcing costs, and practical tips to help you calculate salaries and deductions correctly. Whether you’re a start-up, a growing small business, or a multinational company, managing payroll well will protect your business from fines, save you time, and help you build strong relationships with your employees in Pakistan’s ever-changing business environment.

What You Need to Know About Payroll in Pakistan

Managing payroll in Pakistan requires a clear understanding of local labour laws, tax regulations, and employee benefits to keep your business compliant and employees satisfied. Whether you operate a local firm or a multinational, accurate payroll management helps you avoid penalties and build trust. Focus on these essential points for effective payroll handling:

• Legal Framework: Pakistan’s payroll is governed by laws including the Payment of Wages Act, Income Tax Ordinance, and Employees’ Old-Age Benefits Act. These require paying salaries on time, deducting income tax based on progressive slabs, and making mandatory pension and social security contributions.
• Payroll Calculation: Calculate gross salary by combining basic pay with allowances such as housing, medical, and conveyance. Include bonuses and overtime pay, which typically applies at 1.5x or 2x the hourly rate for extra hours and public holidays. Deduct income tax, pension contributions (5% employer, 1% employee), and social security accurately to ensure compliance.
• Employer and Employee Contributions: Employers must deduct income tax at source and remit it on time. They also contribute to pension and social security funds, while employees contribute smaller amounts. Timely remittance of these contributions is critical to avoid penalties and maintain good standing with authorities.
• Setting Up Payroll: Register your business with relevant tax and labour authorities and open a dedicated corporate bank account for salary payments. Develop clear payroll policies covering salary structure, payment schedules, leave encashment, and statutory deductions. Maintain accurate employee records, including national ID and tax numbers, to facilitate audits and transparency.
• Monthly Payroll Cycle and Incentives: Pay employees monthly, ensuring salaries meet or exceed the government-mandated minimum wage. Although a 13th-month salary is not legally required, providing performance bonuses or annual incentives is a common practice to support employee satisfaction and retention.

How to Calculate Payroll in Pakistan: A Step-by-Step Process

Calculating payroll in Pakistan requires a detailed understanding of local labour laws, tax regulations, and mandatory contributions. Accurate payroll processing ensures compliance, prevents penalties, and maintains employee trust. Follow this step-by-step guide to calculate payroll correctly:

Gather Essential Employee Information

Collect and verify employee details, including personal information, bank details, tax identification numbers, and relevant documentation for benefits and deductions. Accurate data collection is the foundation for correct salary processing and compliance. This is crucial for registering employees for tax and social security. Verify their CNIC, address, and contact details to ensure compliance with legal requirements.

Determine Gross Salary Components

The gross salary comprises the basic salary and various allowances such as housing rent allowance (HRA), medical allowance, and conveyance allowance. These components vary based on company policy and employee designation.

• Basic Salary: The base amount employees earn before any additions or deductions.
• Allowances: Include housing rent allowance (HRA), medical allowance, and conveyance allowance. These vary by company policy and employee role.
• Bonuses: Performance-based or profit-sharing payments.
• Overtime Pay: Compensate extra hours worked beyond the standard 48-hour workweek, typically at double the regular hourly rate, including work on public holidays.

Apply Payroll Deductions

Apply mandatory deductions, including income tax and EOBI contributions, and other deductions as per government regulations.

• Income Tax: Withhold income tax based on progressive tax slabs ranging from 0% to 35%. Employees earning below the exemption threshold (PKR 600,000 annually) pay no tax.
• EOBI Contributions: EOBI contributions are mandatory for social security. Employers contribute 5% of the employee’s salary, while employees contribute 1%.
• Provident Fund: Deduct a percentage of the basic salary as per company policy or statutory requirements.
• Other Deductions: Include social security contributions and any additional employee benefit schemes.

 Account for Pension Rights and Benefits

Incorporate pension-related benefits governed by the Employees’ Old-Age Benefits Act, 1976:

• Old-Age Pension Eligibility: Employees qualify for a pension after reaching age 60 (55 for women) and completing at least 15 years of contributions. Reduced contribution periods apply for older employees at the time the Act became applicable.
• Minimum Pension: The minimum monthly pension is fixed by law (e.g., PKR 8,500 or as revised).
• Dependents & Survivors Benefits: In case of an employee’s death, the full pension amount is equally distributed among surviving spouses as per Section 22-B of the Act. If no spouse or children survive, payments may extend to parents for a limited period.
• Invalidity Benefit: Employees who become disabled during employment may receive invalidity pensions, providing income support as part of social security schemes.

Net Salary Calculation

Subtract total deductions from the gross salary to determine the net salary payable to the employee.

• Formula: Net Salary = Gross Salary – (Income Tax + Pension + Provident Fund + Other Deductions)
• Example: If an employee earns a gross salary of PKR 100,000, with PKR 5,000 income tax, PKR 1,000 pension contribution, and PKR 2,000 other deductions, then:
  Net Salary = 100,000 – (5,000 + 1,000 + 2,000) = PKR 92,000

Maintain Accurate Records

Keep detailed records of all payroll transactions, including employee data, salary components, deductions, and payment history. Regularly review payroll calculations and stay updated on changes in tax laws, pension reforms, and labour regulations. Proper documentation supports audits, ensures transparency, and safeguards your business from penalties.

Key Elements of Salary Structure in Pakistan

Understanding the key elements of a salary structure in Pakistan is essential for businesses to attract and retain talent, comply with labor laws, and manage payroll cost effectively. A transparent and well-defined salary structure promotes fairness, legal compliance, and employee satisfaction, which are critical for organizational success.

Basic Salary

The basic salary forms the fixed core of an employee’s compensation and usually represents a significant portion of the total pay package. It serves as the base for calculating allowances, deductions, and benefits. Pakistani labor laws require that the basic salary must meet minimum wage standards set by the government, which vary by province and sector.

Gross Salary

Gross salary includes the total of the basic salary and all allowances before any deductions. It represents the employee’s total earnings and forms the basis for calculating tax and social security contributions.

Net Salary

Net salary is the amount an employee receives after all deductions are made from the gross salary. It is the actual take-home pay credited to the employee’s bank account.

Allowances

Allowances supplement the basic salary to cover specific employee expenses and improve work-life balance. Common allowances in Pakistan include:

• House Rent Allowance: Typically 40-50% of the basic salary, this allowance helps employees meet housing costs, especially in urban centers like Karachi, Lahore, and Islamabad where rent is high.
• Medical Allowance: Usually around 10% of the basic salary, this allowance assists with medical expenses for employees and their immediate family members.
• Conveyance Allowance: A fixed monthly amount to cover commuting and transportation costs.
• Utility Allowance: Covers essential utility bills such as electricity, gas, and water.
• Other Allowances: May include education allowance, special duty allowance, or performance-related incentives depending on company policy.

Deductions

Deductions reduce the gross salary to arrive at the net payable amount. Common statutory deductions include:

• Income Tax: Pakistan applies a progressive tax rate from 0% to 35%, based on annual income slabs. Employees earning below the exemption threshold (currently PKR 600,000 annually) are not subject to income tax. Employers must withhold and remit taxes timely to avoid penalties.
• Employees’ Old-Age Benefits Institution (EOBI): Employers contribute 5% of the employee’s salary, while employees contribute 1%, funding pension and social security benefits.
• Provident Fund: Both employer and employee contribute a percentage of the basic salary to a retirement savings fund, which is either statutory or voluntary based on company policy.
• Other Deductions: May include health insurance premiums, loan repayments, or union fees as applicable.

Cost to Company (CTC)

CTC represents the total annual expense a company incurs for an employee, including gross salary, employer contributions to social security and provident funds, bonuses, and other benefits such as health insurance or training allowances.

Key Salary Components in Pakistan

How to Set Up a Payroll in Pakistan

Setting up payroll in Pakistan requires careful planning and compliance with local laws to ensure smooth and accurate salary processing. Whether you operate a local or international business, follow these essential steps to establish efficient and compliant payroll operations:

Step 1: Register Your Company

Register your company with SECP to obtain legal recognition. This includes submitting your company’s name and required documents to officially incorporate your business.

Step 2: Obtain a National Tax Number (NTN)

Apply for a National Tax Number (NTN) from the Federal Board of Revenue (FBR). The NTN is mandatory to deduct and deposit income tax on employee salaries and to file tax returns. Without an NTN, you cannot legally process payroll taxes.

Step 3: Register for Social Security and Employee Benefits

Register with the relevant provincial social security department and EOBI. This registration ensures you can make mandatory contributions for employee pensions, social security, and other benefits. It also enables employees to claim their entitlements.

Step 4: Open a Bank Account

Open a corporate bank account in Pakistan dedicated solely to salary payments and payroll expenses. This account ensures transparency in salary disbursements and helps maintain clear financial records for audits.

Step 5: Calculate Employee Payroll Accurately

Calculate each employee’s gross salary by adding:

• Basic salary
• Allowances (house rent, medical, conveyance, utilities)
• Bonuses and overtime pay (overtime is usually paid at 1.5x or 2x the hourly rate for hours beyond 48 per week)

From the gross salary, deduct:

• Income tax based on progressive tax slabs (0% to 35%)
• Pension contributions (5% employer, 1% employee) to EOBI
• Provident fund contributions if applicable
• Any other authorized deductions (e.g., loan repayments, insurance premiums)

Step 6: Finalize Payroll Structure and Payment Schedule

Define your salary components clearly in employment contracts and internal policies. Decide on a payroll cycle – monthly payments are standard in Pakistan. Clearly communicate salary components, deductions, and pay dates to employees. Ensure timely salary payments to avoid penalties and maintain employee trust.

Payroll Processing Stages in Pakistan

The payroll process in Pakistan involves several key stages to ensure timely and accurate salary payments and compliance with local regulations. These stages are crucial for efficient business operations and maintaining employee satisfaction. The payroll process comprises three stages:

Pre-Payroll Stage

• Set up the company profile and open a dedicated corporate bank account for salary disbursements.
• Develop clear policies on attendance, working hours, overtime, leave entitlements, and payroll schedules to maintain consistency and transparency.
• Collect and verify employee information, including identification, bank details, and tax status, to ensure accurate salary calculations and compliance.
• Complete necessary registrations with local authorities to manage employee benefits and meet legal requirements.

Payroll Stage

• Calculate gross salary by combining basic pay, allowances (housing, medical, conveyance), bonuses, and overtime pay.
• Deduct mandatory amounts such as income tax (progressive rates based on earnings), pension contributions, provident fund, and authorized deductions like loan repayments or insurance premiums.
• Disburse net salary to employees’ bank accounts on scheduled payroll dates, usually monthly.

Post-Payroll Stage

• Maintain detailed records of salary payments, deductions, tax filings, and social security contributions for audits and dispute resolution.
• Remit deducted taxes and social security contributions to relevant authorities on time to avoid penalties.
• Generate payroll reports to enhance transparency and accountability.
• Regularly reconcile payroll accounts to identify and correct discrepancies promptly.

Payroll Contributions in Pakistan

Payroll contributions in Pakistan are mandatory payments made by both employers and employees to fund social security and retirement benefits. These contributions ensure financial protection for employees and legal compliance for employers.

• Employer Contribution: Employers contribute 5% of the employee’s monthly salary to pension funds, which directly supports employee retirement benefits under social security schemes. Employers are also responsible for deducting income tax from salaries according to the progressive tax slabs and depositing these funds within specified deadlines to avoid fines and interest charges.
• Employee Contribution: Employees contribute 1% of their monthly salary toward pension schemes, building their retirement corpus. Additionally, fixed deductions for healthcare and social welfare programs are deducted as mandated by labor laws. Detailed pay slips reflecting these deductions help employees verify contributions, ensuring transparency and reducing payroll disputes.
• Taxation on Salaries: Pakistan’s income tax on salaries follows a progressive structure from 0% to 35%, with annual exemptions for incomes below PKR 600,000. Employers calculate tax liability based on accurate salary records and apply withholding tax at source.

Payroll Options for Companies in Pakistan

Companies in Pakistan can choose from several payroll management options based on their size, operational complexity, and resource availability. Selecting the right payroll solution ensures accurate salary processing, compliance with Pakistani labor laws, and efficient management of employee benefits.

• Internal Payroll: Larger companies with established local operations often manage payroll internally. This approach requires dedicated HR and finance teams skilled in salary calculations, tax deductions, and social security contributions. Internal payroll management provides full control over pay structures, customized reporting, and direct oversight of statutory contributions. While it involves higher operational costs and resource allocation, it allows companies to tailor payroll processes to their specific requirements.
• Remote Payroll: Some businesses opt to process payroll remotely from their headquarters. This method can reduce local administrative overhead but demands precise handling of local tax deductions, social security contributions, and salary disbursements in Pakistani currency. Remote payroll must ensure accurate salary payments to employees’ bank accounts and timely submission of payroll taxes to avoid financial penalties.
• Payroll Service: Outsourcing payroll to specialized Pakistan payroll companies is a cost-effective solution for many businesses, especially SMEs. Payroll service providers handle salary calculations, tax deductions, social security contributions, payslip generation, and compliance reporting. These providers use advanced payroll software tailored for Pakistan’s payroll requirements, helping businesses reduce errors and administrative workload.
• Employer of Record (EOR):An Employer of Record allows companies to hire and pay employees in Pakistan without establishing a local legal entity. The EOR manages all payroll functions, including salary processing, tax deductions, social security contributions, and statutory benefits. This option accelerates market entry and reduces administrative complexity, making it ideal for startups and companies expanding rapidly in Pakistan.

How to Calculate Basic Salary in Pakistan?

Basic salary is the fixed core component of an employee’s pay and forms the basis for allowances, benefits, and statutory deductions. to calculate basic salary in pakistan per month, follow these key points:

• From Gross Salary: Subtract all allowances (house rent allowance, medical allowance, conveyance allowance) and bonuses from the gross salary.
  For example, if the gross salary is PKR 100,000 and total allowances plus bonuses are PKR 25,000, then:
  Basic Salary = 100,000 – 25,000 = PKR 75,000.
• From Cost to Company (CTC): Basic salary is often set as a percentage of the CTC, typically between 40% and 60%, depending on company policy and industry standards.
  For example, if CTC is PKR 120,000 and basic salary is 50%, then:
  Basic Salary = 120,000 × 0.5 = PKR 60,000.
• Compliance with Minimum Wage: The basic salary must meet or exceed the government-mandated minimum wage, which varies by province and sector.
• Statutory Calculations: Basic salary is used to calculate mandatory contributions such as EOBI (employer contributes 5%, employee 1%) and provident fund (usually 5-10% of basic salary).
• Allowances Based on Basic Salary: Many allowances, like house rent allowance, are calculated as a percentage of the basic salary (commonly 40-50%).

Employee Leave Policies in Pakistan

Managing employee leave effectively is a critical component of HR and payroll processes in Pakistan. Understanding the types of leave, statutory entitlements, and best practices helps businesses maintain workforce productivity while complying with local regulations.

• Annual Leave: Employees are entitled to at least 14 days of paid annual leave after completing one year of service. Some companies offer more based on length of service or company policy. Annual leave can be taken all at once or in parts, but employers usually require advance notice.
• Casual Leave: Casual leave is for urgent or unexpected personal reasons, such as family emergencies or important appointments. Employees typically get around 10 days of paid casual leave per year. This leave is flexible and can be taken in small amounts, like a day or half-day, with prior approval.
• Sick Leave: Sick leave is provided when employees are unable to work due to illness or injury. Paid sick leave usually ranges from 8 to 16 days annually, depending on company policy or regional rules. Employees may need to submit a medical certificate for extended sick leave.
• Maternity Leave: Female employees are entitled to maternity leave to recover from childbirth and care for their newborn. Pakistan’s labor laws provide up to 180 days of paid maternity leave for the first child, with shorter durations for subsequent children.
• Paternity Leave: Paternity leave is granted to fathers to support their spouse and newborn. The duration varies but is commonly between 7 to 30 days, often paid. This leave helps fathers participate in early childcare and family bonding.
• Public and Religious Holidays: Employees receive paid leave on official public holidays such as Pakistan Day, Independence Day, and religious festivals like Eid-ul-Fitr and Eid-ul-Adha. Additionally, some companies provide special leave for religious pilgrimages such as Hajj, which can last up to 60 days, often unpaid but sometimes paid depending on company policy.
• Bereavement and Compassionate Leave: Many employers offer paid or unpaid leave for bereavement, allowing employees time to grieve and attend funerals of close family members. The duration usually ranges from 3 to 7 days. Compassionate leave may also be granted for other serious personal matters.

Termination Rules in Pakistan

Termination of employment in Pakistan is governed by specific rules designed to protect both employers and employees. Understanding these rules helps ensure lawful separation, minimize disputes, and maintain fair labor practices.

• Termination by Notice: In Pakistan, employers and employees are generally required to provide advance written notice before ending the employment contract. The notice period depends on the length of service—shorter for employees with less than one year of service and extending up to one month for those with more than three years of continuous employment.
• Termination Without Notice: In cases of serious misconduct, dishonesty, or a major breach of contract, employers can terminate employment immediately without notice. Such summary dismissal must be justified and properly documented to avoid legal disputes.
• Termination Due to Redundancy or Retrenchment: When a company downsizes or restructures, termination may occur due to redundancy. Employers must follow fair and transparent selection criteria and provide severance pay as per the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968.

Severance Pay in Pakistan

Severance pay is a financial benefit given to employees when their employment ends, typically to support them during the transition after job loss. In Pakistan, severance pay rules are governed by labour laws such as the Industrial Relations Ordinance, 1969, and other relevant regulations.

• Eligibility: Employees who have completed at least one year of continuous service are generally eligible for severance pay. Those terminated for misconduct usually do not qualify.
• Calculation: Severance pay is commonly calculated based on the employee’s last drawn basic salary and length of service. The standard formula is one month’s basic salary for each completed year of service. Some companies or regions may offer enhanced packages.
• Components Included: The calculation usually considers the basic salary but may also include allowances and benefits depending on company policy.
• Payment Timing: Severance pay must be paid promptly upon termination, along with any unpaid salary and accrued leave.
• Variations: Contractual terms, company policies, and regional laws can affect severance pay amounts. Some employers offer more generous severance packages as incentives.
• Legal Protection: Employees can claim severance pay through labour courts if employers fail to comply with legal obligations.
• Additional Benefits: Severance may be accompanied by other termination benefits such as notice pay or payment in lieu of notice.

Common Payroll Mistakes to Avoid in Pakistan

Payroll management in Pakistan presents unique challenges, with intricate tax laws and compliance requirements. Businesses must avoid these common payroll mistakes to maintain compliance, financial stability, and employee trust. Top payroll mistakes in Pakistan include:

• Incorrect Salary Calculations: Miscalculating salaries due to incorrect timesheets, overtime mismanagement, or payroll software errors. Use reliable payroll software and train staff on accurate calculation methods.
• Non-Compliance with Tax Regulations: Failure to withhold taxes, contribute to EOBI, and adhere to other deductions. Stay updated on the latest tax laws and seek advice from a tax professional.
• Delays in Payments: Timely payments are crucial for employee satisfaction. Implement streamlined processes and use direct deposit to avoid delays.
• Inaccurate Record-Keeping: Failure to maintain accurate payroll records can lead to compliance issues. Follow best practices for record-keeping and regularly back up data.
• Lack of Data Security: Payroll involves sensitive employee information. Weak data security measures can lead to breaches. Implement robust security measures and comply with data protection regulations.

Benefits of Payroll Management in Pakistan

Payroll management in Pakistan plays a critical role in ensuring accurate salary processing, legal compliance, and employee satisfaction. Here’s how effective payroll management adds concrete value to businesses:

• Large, Cost-Effective Workforce: Pakistan offers a broad talent pool with competitive salary levels compared to regional markets. Efficient payroll management ensures timely salary payments, which is crucial for retaining skilled professionals in key sectors such as IT, manufacturing, and textiles, where employee turnover can be significant. This cost advantage allows companies to optimize payroll expenses while maintaining workforce stability.
• Banking Integration and Digital Payments: Major banks in Pakistan offer bulk salary disbursement services integrated with payroll platforms. This enables quick salary crediting to employees’ accounts, reducing risks associated with cash handling and improving financial inclusion by facilitating access to digital wallets and salary-based financial products.
• Strict Regulatory Compliance: Payroll systems in Pakistan handle income tax deductions based on progressive tax slabs and manage mandatory contributions to pension and social security funds. Accurate compliance with these requirements helps businesses avoid significant fines and legal complications.
• Complex Allowance and Deduction Management: Payroll solutions efficiently manage diverse salary components such as house rent allowance, medical allowance, conveyance, and statutory deductions including zakat and professional tax where applicable. Automating these calculations minimizes errors that could lead to employee dissatisfaction or regulatory issues.
• Scalable for Growing Businesses: With rapid economic growth in sectors like e-commerce and IT, payroll services in Pakistan are designed to scale effortlessly. They support frequent hiring, salary adjustments, and bonus payments without disrupting payroll cycles or compliance.
• Reporting and Tax Filings: Payroll management generates detailed reports required for tax filings, social security contributions, and provident fund statements. These reports streamline audits and ensure timely submissions, preventing costly delays and penalties.

How HRBS Can Help With Payroll Processing in Pakistan

Payroll management in Pakistan involves many important tasks like calculating salaries, managing payroll cycles, handling tax and social security contributions, and ensuring compliance with labour laws. Managing all these details on your own can be complicated and time-consuming. HR Business Solutions (HRBS) offers expert payroll services designed to make this process easier for your business. Our team understands Pakistan’s labor laws, tax rules, and social security requirements, so you don’t have to worry about staying compliant.

We use advanced payroll software to accurately calculate salaries, deduct taxes and contributions like EOBI, and generate clear payslips for your employees. This helps avoid errors and keeps your payroll running smoothly. With HRBS, you also get detailed payroll reports that help you monitor labor costs and prepare for tax filings. We handle employee onboarding and ensure all payroll processes follow local regulations. Choose HRBS for reliable and efficient payroll management in Pakistan, so you can focus on growing your business without worrying about payroll complexities.

FAQ’s

What are the key components of payroll in Pakistan?

Payroll in Pakistan typically includes the basic salary, various allowances (such as house rent, conveyance, and medical), statutory deductions like income tax and social security contributions (EOBI), and other lawful deductions. Employers must calculate these components accurately to comply with labour laws and tax regulations.

How is income tax deducted from salaries in Pakistan?
Income tax is deducted at source based on progressive tax slabs set by the Federal Board of Revenue. Salaries up to PKR 600,000 annually are exempt from tax, with rates starting at 5% for income exceeding this threshold and rising up to 35% for income above PKR 4,100,000. Employers are responsible for deducting and depositing these taxes on behalf of employees.

What is the typical salary structure in Pakistan?
The salary structure usually consists of the Cost to Company (CTC), which includes the gross salary and employer contributions. The gross salary includes the basic salary (usually 40-60% of CTC), allowances, and benefits. Net salary is the amount paid to employees after deductions like taxes and social security. Basic salary forms the foundation for tax and provident fund calculations.

How often should payroll be processed in Pakistan?
Payroll is generally processed monthly, with salary payments and statutory deductions made according to the employment contract and labour regulations. Monthly payroll processing ensures timely payment and compliance with tax and social security requirements.

How is overtime calculated in Pakistan?
Overtime pay is typically calculated at twice the regular hourly rate for hours worked beyond the standard 9 hours per day or 48 hours per week. Overtime on public holidays is compensated at three times the regular pay rate.

Can businesses outsource payroll processing in Pakistan?
Yes, many companies outsource payroll to specialized providers to ensure accuracy, compliance, and efficiency. Outsourcing helps reduce administrative burden, ensures timely tax filings, and keeps payroll aligned with evolving regulations.

What penalties can employers face for non-compliance with payroll and tax regulations in Pakistan?
Employers who fail to deduct and deposit income tax on time may face penalties starting from PKR 40,000 or 10% of the outstanding tax amount, whichever is higher. Late filing of tax returns can result in daily fines of 0.1% of the tax payable or PKR 1,000 per day, with minimum penalties of PKR 10,000. Overdue payments of EOBI contributions attract a penalty of 2% per month on the outstanding amount, up to a maximum of 50%. Non-compliance, such as delayed wage payments or underpayment of minimum wages, can lead to fines and even imprisonment under the Minimum Wages Ordinance. These strict penalties emphasize the importance of timely and accurate payroll management.

Are employers required to pay a 13th-month salary in Pakistan?
No, there is no legal requirement for a 13th-month salary or annual bonus in Pakistan, though some companies may offer it as part of their compensation package.