Pk Social Contributions

---
name: pk-social-contributions
description: "Use this skill whenever asked about social security and pension contributions for workers and the self-employed in Pakistan. Trigger on phrases like \"EOBI Pakistan\", \"social security Pakistan\", \"pension contribution Pakistan\", \"ESSI PESSI SESSI\", \"do freelancers pay social security Pakistan\". Covers EOBI old-age benefits, the provincial social security institutions, and the (limited) position of the self-employed. ALWAYS read before any Pakistan social-contribution work."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/pk-social-contributions"
  jurisdiction: "PK"
  tax_year: "2026"
  last_updated: "2026-06-12"
---

# Pakistan Social Security & Pension Contributions — Skill v1.0

> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

## Section 1 — Quick Reference

| Scheme | Who | Contribution (verify current rates) |
|---|---|---|
| EOBI (Employees' Old-Age Benefits Institution) | Employers with 5+ employees (some 1+) | Employer ~5% + employee ~1% of minimum wage |
| Provincial social security (ESSI / PESSI / SESSI / KPESSI / BESSI) | Employers, for secured (low-wage) employees | Employer % of wages (province-specific) |
| Self-employed / freelancers | Generally OUTSIDE mandatory schemes | EOBI **voluntary** self-employment option may exist (verify) |

| Field | Value |
|---|---|
| Currency | PKR |
| Authorities | EOBI (federal); provincial ESSIs |
| Skill version | 1.0 |

## Section 2 — Key points (Tier 1)
- Pakistan's social-security system is largely **employer-employee** based (EOBI for pensions; provincial ESSIs for medical/contingency benefits for secured employees).
- A **self-employed freelancer with no employees generally has no mandatory social contribution** — this is unlike most other countries and is important to state clearly. Income tax (and, for exporters, the IT-export final tax) is the main obligation.
- If the freelancer **hires employees**, EOBI (5+ employees) and the relevant **provincial ESSI** registration/contributions can apply (see pk-payroll).
- A **voluntary** EOBI route for self-employed/voluntary insured persons may be available — verify current rules.

## Section 3 — Worked example
A solo freelancer with no staff: **no** EOBI/ESSI contribution due; obligations are income tax / IT-export final tax only. If they later hire 5 staff, EOBI registration and contributions begin.

## Section 10 — Prohibitions
- NEVER tell a solo freelancer they owe mandatory EOBI/ESSI as a self-employed person (generally they do not) — but flag the voluntary option.
- NEVER omit EOBI/ESSI once the freelancer becomes an employer above the thresholds.
- NEVER state contribution rates without verifying current EOBI/provincial figures.

## Disclaimer
Informational only; not advice. Verify EOBI and provincial ESSI rules with the relevant authority. All outputs must be reviewed and signed off by a qualified Pakistani practitioner. Maintained at [openaccountants.com](https://www.openaccountants.com).

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-06-12. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `pk-social-contributions` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/pk-social-contributions. If neither is available, confirm every figure against the official source pages cited above before relying on it.