Employee Fund Return Filing is a critical compliance responsibility for employers in Pakistan. It ensures the timely submission of employee-related contributions to institutions like the Employees’ Old-Age Benefits Institution (EOBI) and provident fund schemes, enabling employees to access retirement benefits and social security.
For businesses, staying compliant with employee fund return obligations minimizes legal risks and fosters trust. This guide walks you through the process, legal frameworks, and tips for accurate and timely submission.
Section 1: What is Employee Fund Return Filing?
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Definition: Employee Fund Return Filing refers to the reporting and submission of contributions made by employers (and in some cases, employees) to regulated employee welfare schemes such as EOBI and provident funds.
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Purpose: These returns ensure employees’ entitlement to retirement pensions, survivor benefits, and gratuity, based on their registered contributions.
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Regulatory Bodies:
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Employees’ Old-Age Benefits Institution (EOBI) – a federal body administering pension and old-age benefits.
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Company-Managed Provident Funds – often governed under trust deeds, but must comply with Income Tax Ordinance, 2001 and labor laws.
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Section 2: Understanding the Components of Employee Fund Return Filing
Employees’ Old-Age Benefits Institution (EOBI)
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Overview: EOBI provides pensions and old-age benefits to registered employees.
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Contribution Structure:
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Employer Contribution: 5% of the minimum wage
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Employee Contribution: 1% of the minimum wage
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Current Wage Basis (2025): PKR 32,000/month (Minimum wage as notified by government).
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Exemptions: Organizations in specific sectors (e.g., agriculture) or those below employee thresholds may be exempt.
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EOBI Registration: Mandatory for companies with 5 or more employees.
Employees’ Provident Fund (EPF)
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What is EPF? A voluntary or mandatory savings scheme where both employers and employees contribute a fixed percentage of salary.
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Contribution Rates: Typically 10% from both employer and employee.
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Fund Management: Either managed internally via a trust or externally by approved provident fund managers.
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Withdrawal Eligibility: After resignation, retirement, or five years of continuous service (depending on trust deed rules).
Section 3: Key Steps in Employee Fund Return Filing
Registration and Enrollment
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EOBI
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Employer applies through the EOBI online portal (https://eobi.gov.pk)
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Provide business documents (NTN, incorporation certificate, CNICs, etc.)
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Employees are registered and assigned EOBI registration numbers
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Provident Fund
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Create a trust deed and register the fund with the Commissioner of Income Tax
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Maintain a separate bank account for the fund
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File annual PF statements with tax authorities and employees
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Contribution Management
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EOBI
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Maintain monthly payroll records
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Calculate contributions based on minimum wage
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Submit contributions by the 15th of each month through bank or online
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Provident Fund
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Deduct agreed percentage from salaries
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Transfer contributions monthly to the PF account
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Keep detailed ledgers and share balance statements with employees annually
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Filing and Submission
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EOBI Return Filing
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Login to the EOBI portal and upload the “Contribution Statement (Form PR-03)”
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Attach employee list, CNICs, and contribution summaries
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Submit by the 15th of each month
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Obtain payment challan and acknowledgment
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Provident Fund Reporting
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Maintain member-wise ledger
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Prepare annual return of PF contributions
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Submit financials for trust audit and file tax exemption return (if applicable)
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Section 4: Common Challenges and Compliance Issues
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Incorrect CNIC Entries – Leads to rejection of records or mismatched benefits
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Late Submission of Contributions – May attract penalties and interest
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Unregistered Employees – Employers often delay EOBI registration, which violates labor laws
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Improper Provident Fund Documentation – Missing trust deeds, incorrect investment disclosures, or unfiled tax returns
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Audit Findings – PF and EOBI funds may be audited by SECP, FBR, or internal auditors
Rectification:
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Errors must be corrected by amending the return or submitting a revised employee list.
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Late penalties must be paid via designated challan forms.
Section 5: Resources for Employee Fund Return Filing
Online Portals
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EOBI Employer Portal: https://eobi.gov.pk – For registration, return filing, and payment
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FBR IRIS Portal: https://iris.fbr.gov.pk – For Provident Fund tax reporting
FAQs
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Who qualifies for EOBI? All permanent employees aged 18–60 working in registered organizations
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Can employers delay EOBI registration? No, registration must be completed within 30 days of business commencement
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Are provident funds tax-deductible? Yes, if registered and properly documented
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Is digital filing available for both? Yes, EOBI filing is fully digitized. Provident fund statements can be submitted via FBR portal
Key Contacts
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EOBI Helpline: 021-34328050
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Regional EOBI Offices: Available in Karachi, Lahore, Islamabad, Faisalabad, etc.
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FBR Helpdesk: 051-111-772-772 for tax-related fund inquiries
Conclusion
Employee Fund Return Filing is more than a regulatory formality — it’s a commitment to employee welfare and legal integrity. By understanding the key roles of EOBI and provident funds, maintaining up-to-date contribution records, and submitting accurate returns, employers can fulfill their legal obligations and build long-term trust with their workforce.
At Sterling.pk, we assist businesses in Pakistan with employee fund compliance, payroll structuring, and EOBI return filing to ensure complete peace of mind. Reach out today for expert support tailored to your business needs.