Remote’s guide to employing in

Pakistan
pakistan flag

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

Services available in this country:
Employer of Record ProductContractor Management

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.

15 Public holidays

Feb
Monday, February 5, 20241Kashmir Solidarity Day (Kashmir Solidarity Day)
Mar
Saturday, March 23, 20242Pakistan Day (Pakistan Day)
Apr
Wednesday, April 10, 20243Festival of Breaking the Fast (Festival of Breaking the Fast)
Thursday, April 11, 20244Day after the Festival of Breaking the Fast (Day after the Festival of Breaking the Fast)
Friday, April 12, 20245Third Day of the Festival of Breaking the Fast (Third Day of the Festival of Breaking the Fast)
May
Wednesday, May 1, 20246Labor Day (Labor Day)
Jun
Monday, June 17, 20247Feast of the Sacrifice (Feast of the Sacrifice)
Tuesday, June 18, 20248Second Day of the Feast of the Sacrifice (Second Day of the Feast of the Sacrifice)
Wednesday, June 19, 20249Third Day of the Feast of the Sacrifice (Third Day of the Feast of the Sacrifice)
Jul
Tuesday, July 16, 202410Ashura (Ashura)
Wednesday, July 17, 202411Day after Ashura (Day after Ashura)
Aug
Wednesday, August 14, 202412Independence Day (Independence Day)
Sep
Monday, September 16, 202413Birth of the Prophet (Birth of the Prophet)
Nov
Saturday, November 9, 202414Iqbal Day (Iqbal Day)
Dec
Wednesday, December 25, 202415Quaid-e-Azam Day (Birthday of Quaid-e-Azam Muhhamad Ali Jinnah)

Want to see and manage all holidays? Sign up for our free HRIS!

Effortless HR in Pakistan: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

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.

Fair Pricing in Pakistan

Employer of Record

Hire and pay your global team

Starting at $599/month

Top features

  • Satisfaction guaranteed

  • No deposits or hidden fees

  • Zero onboarding or offboarding fees

  • Compliant equity incentives support including withholding and reporting

  • Built-in security and compliance

  • Fast onboarding (average 2-3 days)

  • Flexible, localized benefits

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Remote Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HR Management

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app