Compliance failures rarely happen because a company decided to ignore the rules. They happen because a step got missed during a busy month and nobody noticed until an audit or a labor complaint brought it up. This checklist covers the steps that actually get missed.
Registration
- Register your company with EOBI once you cross five employees, not after.
- Register each employee with EOBI within the required window from their joining date.
- Register employees with the correct provincial institution: PESSI in Punjab, SESSI in Sindh, and the equivalent body in other provinces. Do not assume one registration covers an employee who transfers between provinces.
- Keep a copy of every registration confirmation. These get requested during audits more often than companies expect.
Contribution calculation
- Confirm you are using the current EOBI contribution rate. As of 2026 this is roughly Rs. 370 per month from the employer and Rs. 40 from the employee, but this figure moves when minimum wage changes.
- Apply PESSI or SESSI contribution rates separately. They are not the same calculation as EOBI and should not be combined into one number.
- Recalculate whenever an employee's salary changes, not just at year end.
Monthly filing
- File EOBI contributions on time every month. Late filing typically triggers penalties in addition to the owed amount.
- Keep a filing record separate from your payroll sheet so you have proof of submission independent of internal payroll data.
- Cross check that every currently employed staff member appears in the filing, especially after a hiring or termination during that month.
Record keeping
- Maintain individual EOBI and PESSI records per employee, not just company level totals.
- Keep records for the legally required retention period. Pakistani labor law generally expects payroll and compliance records to be retained for several years, and losing this documentation makes disputes far harder to resolve.
- Store documentation somewhere your HR team can retrieve quickly. A compliance record buried in an old email thread is functionally the same as not having it.
Exit process
- Confirm final EOBI and PESSI contributions are filed correctly when an employee leaves.
- Provide any documentation the employee is entitled to regarding their contribution history.
Running through this manually every month is exactly the kind of repetitive compliance work that an HRMS with EOBI and PESSI built in handles automatically, applying current rates, registering employees under the correct province, and keeping a permanent record without anyone maintaining a separate checklist.
Book a demo to see how Workflow Engine handles this end to end.
Adnan Khan
HR Lead, Bitsbuffer
Adnan leads HR operations and business development for Workflow Engine. He writes about Pakistani HR compliance, payroll, and workflow automation from direct operational experience.