Hire employees and contractors in Pakistan
Remote’s guide to employing in Pakistan.
Capital city
Islamabad
Currency
Pakistani rupee
(₨., PKR)Population size
212,228,286
(est. 2018)Languages spoken
Urdu, English, Punjabi
Remote-Owned Entity
Coming in Q3 2022We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
Facts & Stats
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 good ol’ 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.
Capital city
Islamabad
Currency
Pakistani rupee
(₨., PKR)Languages spoken
Urdu, English, Punjabi
Population size
212,228,286 (est. 2018)
Ease of doing business
Medium
Cost of living index
21.59 (2021)
Payroll frequency
Bi-Monthly/Monthly
VAT - standard rate
17%
GDP - real growth rate
1.0% (2019)
Grow your team in Pakistan with Remote
To employ in Pakistan, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Pakistan can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Pakistan quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
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 17,500 PKR or roughly $102.
Payroll cycle
Wages can be paid as frequently as possible but must be disbursed at least once a month.
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 affect your payroll and your employees’ paychecks in Pakistan.
Employer
5%: Pension
Employee
1%: Pension
40 PKR: Healthcare insurance
Types of leave
Paid time off
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.
Public holidays
There are 17 public holidays. Employees can earn up to double their normal wages if they’re required to work on a public holiday.
Sick leave
Sick leave in Pakistan is divided into normal and aggravated sick leave.
Ailing employees can take up to 24 days of normal sick leave with 16 days fully paid. The remaining eight days are compensated at a rate equivalent to 50% of the worker’s normal wages.
Aggravated sick leave lasts an entire year with full wages and only arises when an employee is diagnosed with life-threatening illnesses like cancer or tuberculosis.
Employees must have made healthcare insurance contributions for the preceding 90 days to qualify for sickness benefits.
Maternity leave
Female employees are entitled to 18 weeks of paid maternity leave, provided they made healthcare contributions for at least 180 days in the year prior to the delivery.
Paternity/parental leave
Fathers are entitled to an entire month’s leave for the birth of their first three children.
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.
