Pakistan has a huge number of employees, and what is one thing that every employee needs? No, it’s not a three-day work week; it’s Payroll. Salary Management is undeniably one of, if not the biggest, HR concerns of any business. This is why switching to an optimized Payroll Management System is the need of the hour for SMEs in Islamabad and Pakistan. During the last few years, we’ve seen quite a few automated payroll systems come to aid us all by making things easier.
Today, we’ll do an in-depth analysis of these systems, what they are, why they matter, and the key features you need in a payroll system. Payroll systems will add accuracy, reduce the challenges of manual processing, and also be time efficient. So, let’s get right to it and understand the need for payroll management systems for businesses in big cities like Islamabad.
What is a Payroll Management System?
Payroll Management Systems aim to simplify repetitive payroll processing and payslip dispatching tasks. Typically Payroll systems will use data such as the number of hours worked, the number of absences, tasks completed, and bonuses to create a payslip automatically. Effective payroll software efficiently handles tax deductions and ensures compliance with legal requirements. Payroll is then dispatched to relevant employee accounts stored in the databases. Emails for payslips are also sent to their respective IDs. Before moving forward it is essential to understand the different types of payroll processing and how exactly a payroll is calculated.
How to calculate payroll & its types
To understand how payroll is calculated and what the different types of payslips can be, it’s important to understand the following. A payroll system is like a mixer, which takes in bunches of data and produces a finalized payroll. Typically, time-tracking data, number of absences, tax policies, and some company-defined metrics are the ingredients. The job of the system is to take in all these ingredients, mix them up, and produce a payroll accordingly.
Attendance-Base Payroll Management System
An attendance-based calculation is exactly what it sounds like. Its entire work is based upon the time-tracking data. Time tracking is done through biometric integration, ZKteco devices in the office, and approved time-off requests made on the portal.
Once the system has information about how many hours an employee worked, how many hours were taken off, and how much overtime was done. The system uses this data alongside carefully designed algorithms to generate payroll. Deductions can be made to the payroll according to the number of absences and hours missed from work. Attendance-based payroll adds a much-needed layer of transparency to payroll processing for SMEs in Islamabad.
Legal & Tax-Compliant Payslips
Another important aspect of a Payslip is its legal compliance, especially in terms of taxation. Payroll systems ensure that no full-time employee is getting paid less than the minimum salary defined by law. Moreover, they also use advanced algorithms to make payslips tax-compliant.
Let’s understand this by an example:
An employee working in an SME in Islamabad earns 1 Lac 80 thousand per month. He or she will have to pay 15% tax + an annual fixed tax of 30 thousand. A good HR solution like GleamHRM would make those tax deductions on its own. So, the employees can have a more relaxing time when filling up the annual FBR reports.
Payroll automation software is usually an integral part of a more comprehensive, all-in-one HR management system, such as GleamHR(more on this later). But, why must you bother switching from your old ways of pen, paper, and bundles of records to a payroll system?
Why Payroll Management Matters in Pakistan?
Why payroll management matters in Pakistan is as old a question as the payroll management systems themselves. And the simplest answer to that ‘why’ is the fact that our job market is diverse, massive, and not easy to handle or keep satisfied. SMEs in Islamabad and Lahore are often seen as struggling with challenges in managing HR operations. Payroll calculation for every employee is a significant hurdle, consuming valuable time and resources. This lack of effectiveness forces executives to spend more time on payroll tasks, leaving them less time for strategic decision-making. Having an automated Payroll solution can change that bit instantly and positively. But we think it’s high time that you learned about the specific problems with manual payroll processing.
Challenges of Manual Payroll In Islamabad
Challenges of Manual Payroll processing are forcing businesses in Islamabad to switch to modern ways. Following are the key pain points with manual payroll processing.
Time & Cost
Time is undeniably one of the biggest assets to companies and manual payroll processing depletes that asset a lot. HR managers waste hours and days to compile payrolls and then spend more time double-checking and error handling. Employees also have to make multiple visits to HR managers to sort payroll queries.
However, modern payroll systems do all this dirty work for you, so you only need to take a thorough look at the payrolls and then send them to your employees in a flash. All this saved time can be utilized for more strategic tasks such as improving overall productivity. This is one of the biggest reasons why enterprises should make a switch to payroll systems.
Accuracy & Compliance seems impossible
Probably an even bigger challenge of manual processing than its time constraint is its vulnerability to errors, inaccuracies, and inconsistency. Payroll generation at times requires cautious calculation for tax deductions and time off hours which will most likely result in some errors. However, Payroll systems are designed specifically to eliminate all such errors and issues making them an obvious choice over the ways of the past.
Manual payroll processing is also difficult to make legally compliant due to ever-changing tax laws in companies and states of their operation. On the other hand, a payroll system would do all that on its own utilizing advanced & accurate algorithms. So with top payroll tools, SMEs in Islamabad can enjoy peace. You can say Goodbye to errors by welcoming automation.
No Room for Scalability
If you’ve got a small business with only 10-12 employees maybe you can do well with manual calculation of payrolls. But, what if just like all successful businesses you’re upscaling to let’s say 80 employees? Now you’ll need dedicated HR executives just to calculate and keep track of employee payroll. In contrast, if you have a modern employee payroll management system it doesn’t matter whether you generate payrolls for your 50 employees or 100 or 200.
With Payroll systems the only thing that grows is the database and that allows you to work freely and minimize your HR workload exponentially. So if you’re looking to scale your business operations modern payroll systems are the way to go.
Security & Confidentiality Concerns
Lastly, a lot is said about the security and integrity of an employee’s information but that’s a tough ask to maintain with manual payroll processing. Manual payrolls are susceptible to salary & information leaks. Sometimes these leaks can lead to internal clashes, but that’s not the case with payroll systems.
If you’re looking to get beyond such issues, now’s the time to get paired up with a good payroll management system provider. But, what are the key features of a payroll system in Pakistan? Fret not, we’ve got you covered on that bit too.
Key Features & Benefits of a Payroll System for Islamabad
Now that we are well aware of what challenges manual processing faces. We know what we need in a payroll software solution. So, let’s get right to them. In specific we’ll discuss the Features & their benefits for SMEs in Pakistan.
Attendance Payroll System for Islamabad
Payroll Management systems should have an extremely smart feature of generating payrolls by utilizing the attendance data of each and every employee. They should automatically calculate and disburse payroll based on attendance data. Attendance-based Payroll solutions factor in the hours worked, leaves, and off days, ensuring precise and timely payments with minimal manual input.
Attendance management systems are being used by multiple businesses in Karachi, Gujrat & Lahore already. So, it’s high time that businesses in Islamabad move towards it too. They ensure that you Make Payroll, not War!
Automated Calculations for SMEs in Islamabad
The first thing that you need to ensure is available on your payroll system has to be its ability to do automated calculations. This includes calculations for Taxation and on top of that it should be capable enough to make adjustments according to time-off and bonuses. The availability of automation is integral for businesses in Islamabad.
Seamless Integration
How will the payroll automation software align with your base salaries? Your compliance policies? How will we integrate attendance tracking systems with payroll? These are some of the questions and concerns that your payroll system must be solving. If it can do that, you’ve got yourself a great tool. If you’re a business owner in Pakistan then your payroll automation software needs to have the ability to integrate with your existing Management system.
Customizability Options
The Payroll system you pick should also have the ability to be tailored to your company’s specific policies and you can tweak around things such as tax adjustment and time-off policies. With customizability, we always say, the more the merrier. So, if you’re getting more options of bespoke ness with one payroll tool, pick that.
User Friendly Self-Service Portals
Finally, the payroll system you pick must be enveloped inside user-friendly self-service portals. These portals or mobile apps should be intuitive, responsive, and easy to use and understand. Not all employees are tech geeks so you’ll need something very simple to master even for someone with little to no interaction with technology.
If you need an HR solution to do all this and much more, you don’t need to look beyond GleamHR. GleamHR is the first and undeniably the best payroll system in Pakistan. It’s an automated solution to all your HR problems including but not limited to Payroll. Find more about GleamHR on ‘Top 9 reasons to pick GleamHR (Article)”
Why is GleamHR the best Payroll Software in Pakistan?
GleamHr is Pakistan’s first and leading AI-powered HR software solution. GleamHR is the best payroll management system for businesses in Islamabad due to its incredible customizability and easy-to-use interface. There are 5 key reasons why we say there’s no better payroll software in Pakistan;
- Unmatched Customizability Options for Payroll
- Automated, Accurate, Timely, and Tax-Compliant Payroll dispatch
- Easy-to-use Application, also suitable for non-tech-savvy persons
- Improved Support for Scalability
- Customer Support that’s a cut above all
All these aspects of the GleamHR make it impossible to look beyond it. So, get GleamHR for your business today, by scheduling a call.
Conclusion
Pakistan has a rapidly evolving employee market, where cities like Islamabad, and Lahore are hubs for SMEs and enterprises. The need for an efficient payroll management system has never been greater. Manual payroll processing no longer meets the demands of accuracy, compliance, and scalability that modern businesses require.
By adopting a payroll system like GleamHR, businesses can streamline operations, save time, and ensure employee satisfaction. GleamHR’s robust features, such as automation, customization, and user-friendly portals, make it the ultimate payroll solution. If you’ve got payroll problems and you’d like to get rid of them, get GleamHR! See ya in the next one 🙂
