EOBI Deduction in Payroll Pakistan — Payslip Treatment
How EOBI deduction appears on a Pakistani payslip is sometimes inconsistent across companies — and inconsistency leads to employee confusion. Here is the clean payslip treatment for EOBI and what the employee should see vs what stays on the employer's books.
The two sides of EOBI contribution
Employee share (1% of minimum wage)
Deducted from the employee's gross pay. Reduces net pay. Should appear on the payslip as a deduction line.
Employer share (5% of minimum wage)
Paid by the employer separately. Does NOT reduce the employee's pay. Should NOT appear on the payslip as a deduction from the employee. Tracked on employer's books as a payroll-related expense.
What the payslip should look like
Earnings side:
- Basic salary: PKR 80,000
- House rent allowance: PKR 32,000
- Conveyance allowance: PKR 8,000
- Medical allowance: PKR 8,000
- Total gross: PKR 128,000
Deductions side:
- EOBI (employee share): PKR 400
- WHT (section 149): PKR 5,000
- PF (employee share): PKR 6,664 (if applicable)
- Loan instalment: PKR 5,000 (if applicable)
- Total deductions: PKR 17,064
Net pay: PKR 110,936
Information section (not deducted, but disclosed):
- Employer EOBI contribution this month: PKR 2,000
- Employer PF contribution this month: PKR 6,664 (if applicable)
- Employer SS contribution this month: per provincial rate
Showing the employer-side contributions as information (not deductions) helps the employee see total compensation cost.
Common payslip mistakes
Mistake 1: Showing employer EOBI as deduction
Incorrectly listing employer's 5% contribution as a deduction from the employee. Reduces stated net pay falsely. Creates dispute when employee notices.
Mistake 2: Not showing EOBI at all
Deducting employee EOBI silently without listing on payslip. Employee can't see what they're paying for. Reduces transparency.
Mistake 3: Wrong calculation basis
Calculating EOBI on actual salary instead of minimum wage. See: EOBI rate.
Mistake 4: Mixing EOBI with provincial SS
Showing EOBI and PESSI / SESSI as one combined line. They are separate; should be distinct.
What annual salary tax certificate should reflect
At year-end, the salary tax certificate must show EOBI contributions paid (both employee deductions and employer contributions on the employee's behalf) — both are relevant for tax purposes:
- Employee EOBI deductions: typically not deductible from taxable income but tracked
- Employer EOBI contributions: not added to employee's taxable income
See: salary certificate format.
How the contribution reaches EOBI
Each month:
- HR system calculates per-employee employee + employer EOBI contributions
- Total deposited via designated banks before deadline
- Monthly return filed via EOBI portal showing per-employee breakdown
- Each insured employee's contribution credited to their PI number
For employee voluntary view
Employees can verify their EOBI contribution history directly with EOBI — through EOBI office or app — using their PI number. If the employer's contributions are not showing up in EOBI records, the employer is keeping the deduction but not depositing.
What HR software must handle correctly
- EOBI employee share = deduction (on payslip)
- EOBI employer share = employer-side cost (not deducted from employee, but tracked)
- Calculation on minimum wage (per location)
- Per-employee EOBI line correctly shown
- Annual aggregate visible in salary certificate
- Per-employee return data for monthly filing
The Zaffre HRM EOBI payslip handling
Zaffre HRM shows EOBI employee share as a payslip deduction, tracks employer share off-payslip, calculates correctly on minimum wage per location, integrates with monthly return data and annual salary certificate. See: EOBI rules.