Pakistan

Pakistan, with a population exceeding 220 million, is South Asia's second-largest economy. The country is navigating economic reforms aimed at stabilizing its fiscal landscape and meeting international obligations, including an IMF-backed loan agreement. Understanding Pakistan's employment laws, taxation system, and payroll practices is crucial for compliance and successful business operations.
Contractor Management
Currency
Pakistani Rupee (PKR)
Payroll Frequency
Weekly, bi-monthly, or monthly
Employer Taxes
5%

Overview

Population
~220 million
Language
Urdu, English
Capital
Islamabad
Currency
Pakistani Rupee (PKR)
Country code
+92
Min wage
32,000–37,000 PKR / month
Working hours
8 hours per day
Weekdays
Monday to Saturday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary
  • Not mandatory; subject to employer discretion
Avg employer tax

5%

Tax Breakdown

Personal Income Tax (PIT):

Salaried Individuals
Progressive tax rates up to 35%
Non-Salaried Individuals
Progressive tax rates up to 45%

Corporate Income Tax (CIT):

Standard Rate
29%

Small and Medium Enterprises (SMEs)

Category 1
7.5% for turnover up to PKR 100 million
Category 2
15% for turnover between PKR 100 million and PKR 250 million

VAT

VAT

18%

Tax Calculation for Pakistan
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
PK
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Pakistan typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

  • Register the employee with the Federal Board of Revenue (FBR) for tax purposes
  • Register with the Employees Old-Age Benefits Institution (EOBI) for social security purposes

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Pakistan
When drafting an employment contract for employees in Pakistan, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • 16 days at half pay
  • Medical certificate required
  • Accumulation limit: 16 days
Maternity leave
  • First child: 180 days (fully paid)
  • Second child: 120 days (fully paid)
  • Third child: 90 days (fully paid)
  • Additional children: Unpaid leave
Paternity leave
  • First three children: 30 days (fully paid)
  • Additional children: Unpaid leave
Annual Leave
  • 14 days per year; unused leave may be carried forward
12 Public holidays in Pakistan
1st
New Year's Day
5th
Kashmir Day
23rd
Pakistan Day
31st
Eid-ul-Fitr
1st
Eid-ul-Fitr Holiday
2nd
Eid-ul-Fitr Holiday
21st
Easter Monday
1st
Labor Day
28th
Youm-e-Takbeer
7th
Eid-ul-Azha
14th
Independence Day
25th
Christmas Day
  • 5 Feb: Kashmir Day
  • 23 Mar: Pakistan Day
  • 1 May: Labor Day
  • 3 May: Eid ul-Fitr
  • 4 May: Eid ul-Fitr Holiday
  • 5 May: Eid ul-Fitr Holiday
  • 10 Jul: Eid ul-Azha
  • 11 Jul: Eid ul-Azha Holiday
  • 8 Aug: Ashura
  • 9 Aug: Ashura
  • 14 Aug: Independence Day
  • 9 Oct: Milad un-Nabi
  • 25 Dec: Quiad-e-Azam Day

NB – some of these dates are estimates and not yet confirmed.

Termination Process

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-Initiated: 30 days
  • Employer-Initiated: 30 days
  • Probationers: No notice period required; however, employers may waive or reduce it

Severance Pay

Not mandatory; subject to employment agreements

Probation Period

  • Duration:Typically 3–6 months
  • Extension: Not permitted beyond 3 months; if no confirmation letter is issued by the end of this period, the employee is automatically considered permanent

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Pakistan
with RemotePass

Pakistan offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in South Asia. RemotePass simplifies the process of hiring and managing employees in Pakistan, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Pakistan.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

Free 7-day trial

No credit card required

Cancel anytime

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Pakistan

Pakistan, with a population exceeding 220 million, is South Asia's second-largest economy. The country is navigating economic reforms aimed at stabilizing its fiscal landscape and meeting international obligations, including an IMF-backed loan agreement. Understanding Pakistan's employment laws, taxation system, and payroll practices is crucial for compliance and successful business operations.
Contractor Management
العملة
Pakistani Rupee (PKR)
تردد الرواتب
Weekly, bi-monthly, or monthly
ضرائب أصحاب العمل
5%

نظرة عامة

التركيبة السكانية
~220 million
اللغة
Urdu, English
العاصمة
Islamabad
العملة
Pakistani Rupee (PKR)
رمز الاتصال الدولي
+92
الحد الأدنى للأجور
32,000–37,000 PKR / month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Saturday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary
  • Not mandatory; subject to employer discretion
متوسط ​​ضريبة صاحب العمل

5%

تحصيل الضرائب

Personal Income Tax (PIT):

Salaried Individuals
Progressive tax rates up to 35%
Non-Salaried Individuals
Progressive tax rates up to 45%

Corporate Income Tax (CIT):

Standard Rate
29%

Small and Medium Enterprises (SMEs)

Category 1
7.5% for turnover up to PKR 100 million
Category 2
15% for turnover between PKR 100 million and PKR 250 million

ضريبة القيمة المضافة

ضريبة القيمة المضافة

18%

حساب الضريبة في Pakistan
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
PK
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Pakistan عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

  • Must be in writing
  • Include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

  • Register the employee with the Federal Board of Revenue (FBR) for tax purposes
  • Register with the Employees Old-Age Benefits Institution (EOBI) for social security purposes

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Pakistan
عند إعداد عقد عمل للموظفين في Pakistan يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • 16 days at half pay
  • Medical certificate required
  • Accumulation limit: 16 days
إجازة الأمومة
  • First child: 180 days (fully paid)
  • Second child: 120 days (fully paid)
  • Third child: 90 days (fully paid)
  • Additional children: Unpaid leave
إجازة الأبوة
  • First three children: 30 days (fully paid)
  • Additional children: Unpaid leave
Annual Leave
  • 14 days per year; unused leave may be carried forward
12 عطلات رسمية في Pakistan
1st
New Year's Day
5th
Kashmir Day
23rd
Pakistan Day
31st
Eid-ul-Fitr
1st
Eid-ul-Fitr Holiday
2nd
Eid-ul-Fitr Holiday
21st
Easter Monday
1st
Labor Day
28th
Youm-e-Takbeer
7th
Eid-ul-Azha
14th
Independence Day
25th
Christmas Day
  • 5 Feb: Kashmir Day
  • 23 Mar: Pakistan Day
  • 1 May: Labor Day
  • 3 May: Eid ul-Fitr
  • 4 May: Eid ul-Fitr Holiday
  • 5 May: Eid ul-Fitr Holiday
  • 10 Jul: Eid ul-Azha
  • 11 Jul: Eid ul-Azha Holiday
  • 8 Aug: Ashura
  • 9 Aug: Ashura
  • 14 Aug: Independence Day
  • 9 Oct: Milad un-Nabi
  • 25 Dec: Quiad-e-Azam Day

NB – some of these dates are estimates and not yet confirmed.

عملية إنهاء العقود

Permissible Grounds

  • Mutual agreement
  • Redundancy
  • Misconduct
  • Performance issues

Notice Period

  • Employee-Initiated: 30 days
  • Employer-Initiated: 30 days
  • Probationers: No notice period required; however, employers may waive or reduce it

Severance Pay

Not mandatory; subject to employment agreements

Probation Period

  • Duration:Typically 3–6 months
  • Extension: Not permitted beyond 3 months; if no confirmation letter is issued by the end of this period, the employee is automatically considered permanent

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Pakistan
مع ريموت باس

Pakistan offers a dynamic and youthful workforce, making it an attractive destination for businesses seeking to expand in South Asia. RemotePass simplifies the process of hiring and managing employees in Pakistan, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Pakistan.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.