Pakistan
Make employment in Pakistan easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Pakistan, all in one easy-to-use platform.
- Capital City
Islamabad
- Currency
Pakistani rupee (₨., PKR)
- Languages
Urdu, English, and Punjabi
- Population size
212,228,286
- Remote-Owned Local Entity
Facts & Stats
- Capital City
Islamabad
- Currency
Pakistani rupee (₨., PKR)
- Languages
Urdu, English, and Punjabi
- Population size
212,228,286
- Ease of doing business
Medium
- Cost of living index
21.59 (2021)
- Payroll frequency
Bi-Monthly/Monthly
- VAT - standard rate
16%
- GDP - real growth rate
1.0% (2019)
Pakistan has been inhabited by ancient cultures since the Neolithic age and has been prominent with world-shaping civilizations and empires like the Achaemenids, Seleucids, Mauryan, and the British.
In modern times, the world’s fifth-largest nation is home to the second-largest Muslim population and has recorded strong performance in agriculture, mining, textiles, and professional services. This powerhouse of East Asia boasts an equally robust tourism industry that draws 6+ million visitors from around the globe to sample the delicious cuisine, bustling markets, and rugged landscapes.
Pakistan is a cricket-obsessed country, highlighted by the recent reign of the nation’s former captain Imran Khan who became the 22nd prime minister of Pakistan, leading from 2018 to 2022.
Grow your team in Pakistan with Remote
To employ Pakistani talent, companies must own a local legal entity in Pakistan or work with a global employment solution provider like Remote. Managing payroll, benefits, taxes, and compliance in Pakistan can get complicated, especially without established local relationships.
Remote’s EOR services make it easy for your company to employ and pay workers in Pakistan quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility of employing and paying your team so you can focus on hiring great talent and growing your business.
Risks of misclassification
Pakistan, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Pakistan may lead to fines and penalties for the offending company.
Employing in Pakistan
Provisions for employee protections and workers’ rights are spelled out in the Pakistani Constitution as well as across several government statutes, such as the Industrial and Commercial Employment Ordinance of 1968, and the Industrial Relations Ordinance of 2002.
Employees in Pakistan generally enjoy protection against discrimination based on age and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Pakistan.
Minimum wage
The monthly minimum wage in Pakistan is fixed at PKR 32,000.
Payroll cycle
Wages can be paid as frequently as possible but must be disbursed at least once a month.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Pakistan fast. The minimum onboarding time we need is only 10 working days.
Our team ensures your team members are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
16 Public holidays
Competitive benefits package in Pakistan
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Pakistan are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Pakistan
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Pakistan.
5%
Pension
Types of leave
After working an entire year with an employer, employees are entitled to 14 days of annual leave, with an additional 10 days of casual leave, both with full pay.
Employment termination
Termination process
Employee contracts can be terminated with written notice provided a reasonable justification is provided.
Notice period
Long-term employees must be informed at least one month before termination is due to take effect, otherwise, they’ll be owed a month’s wages in lieu of notice.
Severance pay
Employees who’re terminated for any reason other than misconduct are entitled to severance benefits equivalent to a month’s wages for every year spent with an employer.
Probation periods
The probation period can last up to three months.