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Punjab Social Security Institution for IT Sector Employees
| Detail | Information | |
|---|---|---|
| Authority | Punjab Employees Social Security Institution (PESSI) | |
| Legal Basis | Punjab Employees Social Security Ordinance, 1965 (XVII of 1965) | |
| Applicability | 5+ employees in Punjab | Jurisdiction |
| Jurisdiction | Punjab | |
| Website | PESSI — Rules & Acts | |
| Helpline | 042-111-786-786 | |
| info@pessi.gov.pk | ||
| Head Office | 34-A, Empress Road, Lahore |
| Parameter | Rate/Detail | Jurisdiction |
|---|---|---|
| Employer Contribution | 6% of gross monthly emoluments | Punjab |
| Employee Contribution | 1% of gross monthly emoluments | Punjab |
| Total Cost | 7% (6% employer + 1% employee) | Punjab |
| Minimum Salary Base | PKR 37,000/month | Punjab |
| Maximum Salary Base | PKR 200,000/month | Punjab |
| Salary Range (PKR) | Employer Contribution (6%) | Employee Contribution (1%) | Monthly Total |
|---|---|---|---|
| Up to 25,000 | 1,500 | 250 | 1,750 |
| 25,001 - 50,000 | 3,000 | 500 | 3,500 |
| 50,001 - 100,000 | 6,000 | 1,000 | 7,000 |
| 100,001 - 200,000 | 12,000 | 2,000 | 14,000 |
| Benefit | Description | Jurisdiction |
|---|---|---|
| Sickness Benefit | Cash allowance during illness (medical certificate required) | Punjab |
| Injury Benefit | Compensation for work-related injuries | Punjab |
| Maternity Benefit | 12 weeks paid leave for childbirth | Punjab |
| Death Benefit | Lump-sum payment to nominees | Punjab |
| Disablement Benefit | Monthly pension based on disability degree | Punjab |
| Survivors Pension | Monthly payments to dependents after death | Punjab |
| Medical Care | Free medical treatment at PESSI hospitals/dispensaries | Punjab |
| Component | Rate | Jurisdiction | Reference |
|---|---|---|---|
| Corporate Tax (PSEB IT export) | 0.25% | Federal/ICT | ITO §154A |
| Corporate Tax (domestic) | 20% | Federal/ICT | ITO §154A |
| WHT Export (PSEB) | 0.25% | Federal/ICT | ITO §154A |
| WHT Export (non-PSEB) | 1% | Federal/ICT | ITO §154A |
| SST Punjab IT | 0% (Zero-Rated) | Punjab | PRA Act 2012 |
| SST Punjab IT export (PSEB) | 0% | Punjab | PRA notification |
| EOBI | 5%+1% | Federal/ICT | EOBI Act 1976 |
| PESSI | 6%+1% | Punjab | PESSI Ord. 1965 |
| Workers Welfare Fund | 2% (if income > PKR 500K) | Federal/ICT | WWF Ord. 1969 |
| Startup Tax Credit | 100% for 3 years | Federal/ICT | ITO §65F(b) |
| SEZ Tax Holiday | 10-year 0% | Federal/ICT | SEZ Act 2012 / BOI |
| Violation | Penalty | Jurisdiction |
|---|---|---|
| Late Filing | PKR 100 per day for delayed returns (per PESSI Act) | Punjab |
| Non-registration | Up to PKR 50,000 and/or 6 months imprisonment (per PESSI Act §28) | Punjab |
| Non-payment | 1.5% per month on outstanding dues | Punjab |
| Reference | Section 32, PESSI Ordinance 1965 | Punjab |
| Tax | Rate | Jurisdiction | Conditions | Reference |
|---|---|---|---|---|
| Corporate Tax (PSEB IT export) | 0.25% | Federal/ICT | PSEB + 80% export revenue | ITO §154A |
| Corporate Tax (domestic IT) | 20% | Federal/ICT | Standard corporate rate | ITO §154 |
| WHT Export Remittance (PSEB) | 0.25% | Federal/ICT | PSEB-registered | ITO §154A |
| WHT Export Remittance (non-PSEB) | 1% | Federal/ICT | No PSEB registration | ITO §154A |
| WHT Domestic Services | 3-8% | Federal/ICT | Standard service withholding | ITO §153 |
| Startup Tax Credit | 100% for 3 years | Federal/ICT | PSEB mandatory, <PKR 100M | ITO §65F(b) |
| SEZ Tax Holiday | 10-year income tax 0% | Federal/ICT | SEZ-registered companies | SEZ Act 2012 / BOI |
| SST Sindh — IT concessional | 3% | Sindh | Software dev, CPC 83100 | SRB Notification July 2025 (CPC 83100, sub-rule 1A) |
| SST Sindh — IT export (PSEB) | 0% | Sindh | PSEB + 80% export | SRO 981(I)/2015 (exemption for PSEB-registered IT exporters) |
| SST Sindh — Standard | 15% | Sindh | Default rate | Sindh Sales Tax on Services Act 2011 §4 |
| SST Punjab — IT-Enabled Services | 0% (Zero-Rated) | Punjab | Hosting, maintenance, data processing | Punjab Sales Tax on Services Act 2012, PRA Notification (0% (Zero-Rated) for domestic IT) |
| SST Punjab — Software Dev | 0% (zero-rated) | Punjab | Pure software development | Punjab Sales Tax on Services Act 2012, Notification per PRA directive |
| SST Punjab — IT export (PSEB) | 0% | Punjab | PSEB + 80% export | SRO 981(I)/2015 (extended to Punjab) |
| SST Punjab — Standard | 16% | Punjab | Default rate | Punjab Sales Tax on Services Act 2012 §4 |
| SST KP — IT concessional | 2-5% | KP | PSEB-registered IT | KP Finance Act (annual), Notification per KPRA |
| SST KP — IT export (PSEB) | 0% | KP | PSEB + 80% export | SRO 981(I)/2015 (extended to KP) |
| SST KP — Standard | 15% | KP | Default rate | KP Finance Act (annual) |
| SST Balochistan — IT export | 0% | Balochistan | PSEB + export | SRO 981(I)/2015 (extended to Balochistan), per BRA notification |
| SST Balochistan — Standard | 15% | Balochistan | Default rate | Balochistan Sales Tax on Services Act 2015 |
| SST Telecom (all provinces) | 19.5% | All provinces | Mobile, internet, fixed-line | Provincial Acts |
| EOBI | 5% employer + 1% employee | Federal/ICT | 5+ employees, PKR 37,000/mo ceiling (EOBI Act & Rules) | EOBI Act 1976 |
| SESSI (Sindh) | 6% employer + 1% employee | Sindh | 5+ employees | SESSI Act |
| PESSI (Punjab) | 6% employer + 1% employee | Punjab | 5+ employees | PESSI Ord. 1965 |
| Workers Welfare Fund | 2% of income > PKR 500K | Federal/ICT | 5+ employees, annual | WWF Ord. 1969 |
| 50% FCY Retention | Retain export proceeds in FCY | Federal/ICT | All IT exporters | SBP FECL 05/2026 — Foreign Exchange |
| 100% Foreign Ownership | IT sector allows 100% foreign equity | Federal/ICT | All IT companies | BOI Investment Policy 2023 |
| Duty-Free IT Equipment | 0% customs duty | Federal/ICT | PSEB-registered | PSEB / SRO 488(I)/2013 |
| Body | Role | Website |
|---|---|---|
| FBR / IRIS | Income tax filing, WHT, ATL status | iris.fbr.gov.pk |
| SECP / LEAP | Company registration, annual returns | leap.secp.gov.pk |
| PSEB | IT registration, 0.25% WHT, duty exemptions | pseb.org.pk |
| SBP | FCY retention, EFS, Cyber Shield (Mar 2026) | sbp.org.pk |
| PTA | Telecom licensing, 5G, DIRBS | pta.gov.pk |
| SECP | Corporate governance, company law | secp.gov.pk |
| NADRA | Digital identity (PakID: 15.4M downloads) | nadra.gov.pk |
| WeBOC | Electronic customs declarations | weboc.gov.pk |
| Roshan Digital Account | Overseas Pakistani investment | roshandigitalaccount.com |
| Raast | Instant payment system | raast.pk |
| STZA | Special Technology Zones | STZA — Act & Rules |
| BOI | Investment policy, 100% foreign ownership | invest.gov.pk |
| PPRA | Government procurement (EPADS V2.0) | PPRA — Rules & Regulations |
| FIA Cybercrime | PECA enforcement, Helpline 1991 | cybercrime.gov.pk |
| EOBI | Federal pension: 5%+1% | eobi.gov.pk |
| SRB | 0% | srb.gos.pk |
| PRA | Punjab SST: 0% (Zero-Rated) IT / 0% PSEB export | PRA — PSTS Act 2012 |
| KPRA | KP SST: 2-5% IT / 0% PSEB export | KPRA — Acts & Notifications |
| BRA | Balochistan SST: 0% PSEB IT export | bra.gob.pk |