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Payroll

A month-end payroll checklist for Pakistani businesses

5 min readAiden HR

Payroll goes wrong for predictable reasons: attendance was not closed, a leave record never reached payroll, a salary change was applied late, or a statutory rate was stale. A fixed month-end sequence removes almost all of it, whether you run payroll in software or a spreadsheet.

Before you calculate

Everything below must be true before the first calculation, or you will run payroll twice.

  • Attendance is closed for the period, with exceptions resolved and manual corrections approved.
  • All approved leave is recorded, and unpaid leave is identified.
  • Overtime is authorised and valued at the correct multipliers.
  • Joiners, leavers and salary revisions are entered with the right effective dates.
  • Loan and advance schedules for the month are confirmed.
  • Statutory rates in force for the period are the ones your system will apply.

Calculate, then reconcile before approving

Run the calculation into a preview and compare it against something independent — last month’s totals, or finance’s own expectation. Investigate any movement you cannot explain in one sentence.

The most useful check is the delta rather than the absolute: headcount change, total gross change, and total deduction change month on month. A number that moved without a reason behind it is the error you are looking for.

The checks people skip

These are the ones that produce the awkward payslip conversation.

  • Employees with zero net pay — usually a deduction error, occasionally correct.
  • Anyone whose net moved more than a set percentage versus last month.
  • New joiners paid a full month by mistake, or leavers paid after their last day.
  • Missing bank details, which stop the transfer file rather than the calculation.
  • Tax on anyone whose salary changed mid-year.

After approval

Once approved, treat the run as immutable. Corrections belong in the next period as their own entries, not as edits to a committed run — that is what keeps an audit trail meaningful and lets you answer questions about a period months later.

General information for Pakistani employers, not legal or tax advice. Statutory rates change with each Finance Act — verify current figures before relying on them.

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