.png)
5%
18%
Employment Contract
Registration with Authorities
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
Personal Details
Name, contact information, and role of the employee.
Jan
Feb
Mar
Apr
May
Jun
Aug
Dec
NB – some of these dates are estimates and not yet confirmed.
Permissible Grounds
Notice Period
Severance Pay
Not mandatory; subject to employment agreements
Probation Period
Personal Details
Name, contact information, and role of the employee.
From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.
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

Love it! It has been an essential tool for us, the perks of having everything at the point of my fingers. Using RemotePass has been super efficient. The platform is user-friendly and fast, and communication with customer service is truly a "gold standard".
Working with RemotePass has been extremely easy and effortless. The customer support team are second to none - always quick to respond, always helping with desire and delivering perhaps some of the best customer service we have ever encountered. Onboarding new contractors and employees is quick and easy, and we are happy to recommend RemotePass to others
RemotePass has hands down been one of the best (useful and easy to use) platforms I've worked with in the past few years!
RemotePass has been a great success partner for Amwal, it truly enabled us to be international talent friendly. Attracting top talent without the hassle of thinking how we would hire and pay abroad.
RemotePass has really helped us take the pain out of managing salary payments, contract managements, and admin work with our remote teams. They feel much more in control and more connected because of it.
RemotePass is a game-changer for us. It has made managing our remote teams effortless and has greatly improved the process of hiring, managing and collaborating with our team remotely. Highly recommended
We’re delighted to express our satisfaction regarding our collaboration with RemotePass. Their cutting-edge cloud-based platform has revolutionized our workforce and hiring procedures, enabling us to enhance efficiency and effectiveness in managing everything. It serves as a comprehensive solution that has greatly simplified our operations, making remote work effortless.
RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.
Brilliant service. We love and we'd be using it for the years to come. Also great customer success management as well!
We love the entire system you guys have built, it's user-friendly and in particular we love the automated notifications part. Employees are automatically informed about the payment status and they receive the payment in a couple of hours after they get notified vs. manually asking us. Thanks for your ongoing support
Using RemotePass has been an absolute game-changer for our operations - knowing that we have a reliable partner on our side even in complex regions efficiently (this has previously been a big headache for us), allows our teams to focus exclusively on client service and product delivery
We were looking for a simple and affordable product and RemotePass more than delivered. RemotePass helped us streamline and manage our remote teams. RemotePass understood us as a company and provided us the support and confidence that we are compliant with regulations, our remote teams have excellent support, and that we made the right choice
RemotePass has been very helpful as it streamlines the payment process to our consultants, with a simple 2 to 3 clicks the job is done. It is effortless and straightforward to use. The most important thing is that It eliminates any compliance risks we might face, and the lengthy verification process. Overall the system is excellent, and I would recommend it to other organizations.
The product has been incredibly a game-changer for us as we scaled our team globally. Creating a great first impression when onboarding remote teams. Everything centralized in one place. Love it!
Our work with RemotePass is a partnership based on trust and credibility we are proud to have. With RemotePass services, onboarding and payroll for our global team is well managed and our employees feel safe and cared for.
I was instantly impressed with the UI/UX of the RemotePass platform, it is incredibly user-friendly and the feedback I have received from the remote workers has been excellent. Having supplied contract and remote staff to clients in the Middle East for several years, I have been used to a very manual and labor-heavy process when it comes to payroll and compliance. After one demonstration from the team at RemotePass I switched from using an existing supplier, as I get better value and service using this platform.
Join leaders who depend on RemotePass everyday to be ahead of the curve.
Get paid instantly and in any currency, hold funds in USD on our card, and access premium health insurance and benefits.
Pakistan offers access to a large tech-savvy workforce with competitive hiring costs. Its growing startup scene makes it attractive for building remote and local teams.
To hire successfully, you'll need to understand labor laws, payroll registration, and social security requirements. This guide explains how to hire and pay employees in Pakistan while staying compliant.
RemotePass makes hiring in Pakistan simple. We handle compliance, contracts, and payroll. You focus on building your business.
.png)
Termination: Employment can end with cause or without, but the process and benefits differ.
Foreign Worker Coverage: Expats are generally exempt from EOBI and provincial social schemes.
Insurance: Private health insurance isn't mandatory, though some provinces provide employer-funded coverage.
Every employment contract in Pakistan must include the following key details to remain compliant with local labor laws:
Employee Information
Hiring contractors? Learn how to avoid misclassification risks in Pakistan.
Managing payroll in Pakistan means handling social contributions, income tax, and reporting on tight schedules. The rules are straightforward once you know how they fit together. Here's how it works:
Salary currency
Pakistani Rupee (PKR, Rs)
Minimum Wage
Federal minimum wage is PKR 37,000 per month (FY 2025–26), applicable nationally.
Hours per Week
48 hours per week / 8 hours per day
Payroll Frequency
Monthly
Weekdays
Monday through Saturday
Mandatory Bonuses
Not required
Basic Salary
~%60-70 (Mandatory component)
House Rent Allowance (HRA)
~30-40% (Required if company housing is not provided)
Medical Allowance
Fixed or with a percentage of basic salary (Taxable if exceeding PKR 150,000 annually)
Conveyance Allowance
Optional (Non-taxable up to PKR 2,400 per month)
Other Allowances
Varies (Bonuses, utilities, fuel, etc. Taxable unless exempt)
Employer Cost
~6–7%
Employer Cost
Employees’ Old-Age Benefits Institution (EOBI) – National Pension Scheme:
Covers all employees in formal sector establishments with five or more workers. The EOBI calculates contributions using the minimum wage, not the actual salary, under the latest federal and provincial rules.
Benefits include: Old‑age pension (available at age 60 for men, 55 for women with ≥15 yrs), invalidity and survivors’ pension, or a one-time old-age grant. Expats aren’t covered.
Employer contribution (based on the 1 July 2024 minimum wage of PKR 37,000): 5% of the minimum wage (PKR 1,850 per month).
Provincial Social Security Schemes (e.g. PESSI, SESSI):
These apply in provinces like Punjab, Sindh, KP and Balochistan.
Employers contribute 6% of the gross wage, subject to caps set by each province (for example, Punjab applies the rate to wages up to PKR 37,000 per month).
The Federal Board of Revenue (FBR) administers income tax on salaries. Employers withhold tax at source each month under the PAYE system. Progressive tax rates apply and are updated annually through the Federal Budget.
Employees’ Old-Age Benefits Institution (EOBI) – National Pension Scheme:
1% of minimum wage = PKR 370/month
Expat aren’t eligible for EOIB/PESSI.
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 - 1,200,000 | 5% of amount exceeding 600,000 |
| 1,200,001 - 2,400,000 | PKR 30,000 + 12.5% of amount exceeding 1,200,000 |
| 2,400,001 - 3,600,000 | PKR 180,000 + 20% of amount exceeding 2,400,000 |
| Above 3,600,000 | PKR 420,000 + 25% of amount exceeding 3,600,000 |
| Benefits | Mandatory? | Notes |
|---|---|---|
| Health Insurance | No |
No mandatory government-provided health insurance for private-sector employees. Provincial Social Security Institutions (e.g., PESSI in Punjab, SESSI in Sindh) provide healthcare benefits to registered employees in covered industries, funded by employer contributions (6%). Coverage includes medical treatment, maternity care, disability benefits for insured employees earning up to provincial wage caps. |
| Pension / Social Security | Yes |
Employees’ Old-Age Benefits Institution (EOBI) is the statutory pension scheme providing old-age, invalidity, and survivors’ pensions. Eligibility requires a minimum contribution period (usually 15 years). Applies to all employees in establishments with ≥5 workers. Provincial Social Security Schemes (PESSI, SESSI, etc.) are employer-funded (6% contribution) and cover medical, maternity, and disability benefits. |
| Other Statutory Benefits | No |
Workers’ Compensation & Death Benefits Establishments with 20+ employees must pay annual profit bonus to eligible workmen who have worked at least 90 days. |
Annual leave
Employees who complete 12 months of continuous service earn 14 consecutive days of paid annual leave. Unused leave must be carried forward (up to 14–30 days, depending on provincial rules) and paid out on termination.
Public holidays
Pakistan observes 13–17 public holidays annually, including national events such asPakistan Day (March 23) and Independence Day (August 14) along with major religious holidays like Eid and Ashura.
Sick Leave
Casual Leave: Employees receive up to 10 days of paid casual leave per year, usually for urgent personal reasons.. Prior notice is required, except in emergencies.
Sick leave provides up to 16 days per year at half pay, with a medical certificate required for absences longer than two days.
For employees covered under Provincial Employees’ Social Security Ordinances, sick leave benefits can extend up to 121 days for ordinary illness (typically at 75% of wages, or 50% in KP and Balochistan) and up to 365 days at full pay for serious illnesses such as tuberculosis or cancer.
Maternity Leave
Female employees are entitled to:
Paternity Leave
Male employees are entitled to take up to 30 days of fully paid paternity leave for the first three separate births. Additional leave for later births may be granted as unpaid, depending on company policy.
Other Types of Leave

In Pakistan, every employment ending, whether by resignation or dismissal, must follow the law’s structure for notice, settlement, and records. The outline below shows what this means in practice.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Employee
Resignations
Termination
with Cause
Termination
without Cause
Mutual Termination
Agreement
Fixed Term
Contract
Pakistani Employee Resignation
Form
Written notice.
Notice period
Employees intending to resign are required to provide their employer with a 30-day notice period.
End-of-Service Benefits
Severance/Gratuity
Other Benefits
Upon resignation, employers must settle all dues, including:
Final Payment Timing and Compliance
Final Payment Deadline: Employers must pay all final dues within a few days of the employee’s last working day.
Employer Termination With Cause in Pakistan
Acceptable grounds
The law allows employers to dismiss an employee for serious misconduct such as fraud, theft, or insubordination. A fair process must be followed, including a show-cause notice, an inquiry, and a written explanation of the decision.
Notice
Under the Industrial and Commercial Employment Ordinance, employers can terminate an employee’s contract without notice in proven cases of misconduct.
End-of-Service Benefits
Severance
Employers can forfeit gratuity if the termination for cause is lawful, and all disciplinary procedures under the Standing Orders have been followed.
Other Benefits
Employers are obligated to provide permanent employees with a written termination notice detailing the reasons for dismissal, regardless of the cause.
Employer Termination Without Cause in Pakistan
Acceptance Grounds
The law allows employers to terminate an employee without cause, as long as they issue a termination letter with a valid, documented reason such as poor performance or business restructuring.
Notice
End-of-Service Benefits
Severance/Gratuity
Other Benefits
Employers must provide permanent employees with a written termination notice detailing the reasons for dismissal, regardless of the cause.
Mutual Termination Agreements (MTAs) in Pakistan
These agreements are valid under Pakistani contract law (Contract Act, 1872), provided they involve free consent and lawful terms.
Offboarding Process for the End of Fixed-term Contracts in Pakistan
If the Fixed-Term Contract Ends Normally
Under Pakistan’s Industrial Relations Ordinance (IRO) and related regulations, when a fixed‑term contract concludes on its agreed date, no additional compensation or severance is required-unless the employment contract itself says otherwise.
If the Fixed-Term Contract Ends Normally
When an employer ends a fixed‑term contract prior to its scheduled end, the following legal principles apply:
Notice or Pay in Lieu
Severance Pay (Gratuity)
Employees who complete at least one year of service are entitled to severance/gratuity pay: typically one month’s salary per year of service, or as per contract terms.
Personal Details
Name, contact information, and role of the employee.
From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.
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.

Got Questions? Find Answers Here
Yes, using an Employer of Record (EOR) like RemotePass allows you to legally hire and pay workers in Pakistan without establishing a local entity.
The federal minimum wage is PKR 37,000/month as of FY 2025–26. Provincial rates may vary but must not fall below this threshold.
No, it's not mandatory. However, provincial social security schemes like PESSI and SESSI provide health coverage funded by the employer.
Employees with at least one year of service are entitled to 30 days’ wages per year worked. Partial years over 6 months count as full years.
You must withhold monthly income taxes per Pakistan’s progressive PAYE system. Social contributions like EOBI (1%) are also deducted from employees.
Probation is up to 3 months. The standard notice period is 30 days, both for resignation and termination (unless for cause).
Employees get 10 days of casual leave and up to 16 days of sick leave per year. Sick leave can extend up to 121–365 days under social security.
There’s no statutory requirement for bonuses, but companies with over 20 employees must pay an annual profit bonus to eligible workers.
General Sales Tax (GST) is 17%. Some provinces impose a Service Sales Tax (SST) between 13–16% on services.
RemotePass handles compliant onboarding, payroll, taxation, benefits, and offboarding without the need to set up a local entity.
Love it! It has been an essential tool for us, the perks of having everything at the point of my fingers. Using RemotePass has been super efficient. The platform is user-friendly and fast, and communication with customer service is truly a "gold standard".
Working with RemotePass has been extremely easy and effortless. The customer support team are second to none - always quick to respond, always helping with desire and delivering perhaps some of the best customer service we have ever encountered. Onboarding new contractors and employees is quick and easy, and we are happy to recommend RemotePass to others
RemotePass has hands down been one of the best (useful and easy to use) platforms I've worked with in the past few years!
RemotePass has been a great success partner for Amwal, it truly enabled us to be international talent friendly. Attracting top talent without the hassle of thinking how we would hire and pay abroad.
RemotePass has really helped us take the pain out of managing salary payments, contract managements, and admin work with our remote teams. They feel much more in control and more connected because of it.
RemotePass is a game-changer for us. It has made managing our remote teams effortless and has greatly improved the process of hiring, managing and collaborating with our team remotely. Highly recommended
We’re delighted to express our satisfaction regarding our collaboration with RemotePass. Their cutting-edge cloud-based platform has revolutionized our workforce and hiring procedures, enabling us to enhance efficiency and effectiveness in managing everything. It serves as a comprehensive solution that has greatly simplified our operations, making remote work effortless.
RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.
Brilliant service. We love and we'd be using it for the years to come. Also great customer success management as well!
We love the entire system you guys have built, it's user-friendly and in particular we love the automated notifications part. Employees are automatically informed about the payment status and they receive the payment in a couple of hours after they get notified vs. manually asking us. Thanks for your ongoing support
Using RemotePass has been an absolute game-changer for our operations - knowing that we have a reliable partner on our side even in complex regions efficiently (this has previously been a big headache for us), allows our teams to focus exclusively on client service and product delivery
We were looking for a simple and affordable product and RemotePass more than delivered. RemotePass helped us streamline and manage our remote teams. RemotePass understood us as a company and provided us the support and confidence that we are compliant with regulations, our remote teams have excellent support, and that we made the right choice
RemotePass has been very helpful as it streamlines the payment process to our consultants, with a simple 2 to 3 clicks the job is done. It is effortless and straightforward to use. The most important thing is that It eliminates any compliance risks we might face, and the lengthy verification process. Overall the system is excellent, and I would recommend it to other organizations.
The product has been incredibly a game-changer for us as we scaled our team globally. Creating a great first impression when onboarding remote teams. Everything centralized in one place. Love it!
Our work with RemotePass is a partnership based on trust and credibility we are proud to have. With RemotePass services, onboarding and payroll for our global team is well managed and our employees feel safe and cared for.
I was instantly impressed with the UI/UX of the RemotePass platform, it is incredibly user-friendly and the feedback I have received from the remote workers has been excellent. Having supplied contract and remote staff to clients in the Middle East for several years, I have been used to a very manual and labor-heavy process when it comes to payroll and compliance. After one demonstration from the team at RemotePass I switched from using an existing supplier, as I get better value and service using this platform.
Join leaders who depend on RemotePass everyday to be ahead of the curve.
Get paid instantly and in any currency, hold funds in USD on our card, and access premium health insurance and benefits.


.png)
5%
18%
Employment Contract
Registration with Authorities
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
Personal Details
Name, contact information, and role of the employee.
Jan
Feb
Mar
Apr
May
Jun
Aug
Dec
NB – some of these dates are estimates and not yet confirmed.
Permissible Grounds
Notice Period
Severance Pay
Not mandatory; subject to employment agreements
Probation Period
Personal Details
Name, contact information, and role of the employee.
From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.
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

أحببت هذه المنصة! ريموت باس هي أداة ضرورية بالنسبة لنا، وتقدم لنا ميزة الحصول على كل شيء بسهولة في مكان واحد. كان استخدام منصة ريموت باس فعالًا للغاية، إذ إن المنصة سهلة الاستخدام وسريعة، ويشكل التواصل مع خدمة العملاء البنيان الأساسي و الميزة الخاصة في العلاقة التي تربطنا بمنصة ريموت باس .
لقد كانت ريموت باس أحد أفضل المنصات المفيدة وسهلة الاستخدام التي عملت معها في السنوات القليلة الماضية!
منصة ريموت باس فعالة للغاية بالنسبة لنا، إذ يعمل ما لا يقل عن 60٪ من فريقنا عن بعد. وهي مفيدة بشكلٍ خاص لتتبع عمليات الدفع للجميع أو للتحقق من وجود تعويضات، فلا داعي لفعل ذلك يدويًا لكل فرد كل مرة. منصة ريموت-باس هي حقًا ممتازة لأننا نلتزم بالقوانين المحلية في مواقع إقامة كل عضو من أعضائنا العاملين عن بعد.
بفضل منصة ريموت باس، تمكنت شركة سويڤل من أن تصبح أكثر مرونة، مما سمح لنا بتوظيف أفضل المواهب عن بعد. نعتبر ريموت باس شريكًا رائعًا لتتبع خطط نمو سويڤل بسرعة في بلدان متعددة. نوجه شكرًا خاصًا لفريق الدعم على الخدمة المثالية التي يقدمها.
خدمة رائعة للغاية. نحب هذه المنصة وسنستخدمها في السنوات القادمة. كما أن خدمة العملاء ناجحة وعظيمة!
ما أروع النظام الذي صنعتموه يا رفاق! فهو سهل الاستخدام ونحب على وجه الخصوص خاصية الإشعارات الآلية، حيث يتم تبليغ الموظفين تلقائيًا بالدفع ويتلقون الدفعات في غضون ساعتين بعد إخطارهم بدلًا من فعل ذلك يدويًا. شكرًا على دعمكم المستمر.
تجربتنا مع منصة ريموت باس كانت مذهلة والدعم الذي قدمته لي في معاملتي الأخيرة كان رائعًا. أحببت حقًا خاصية إشعار المتابعة وتزويدي بالتفاصيل. هذا أمر رائع للغاية. شكرًا على مساعدتكم.
شكل استخدام ريموت باس تغييرًا جذريًا في كيفية إنجاز عملياتنا، وأصبح لدينا شريكًا موثوقًا به يساندنا في المناطق المعقدة ويقدم لنا الدعم بكفاءة (كان هذا في السابق مشكلة كبيرة لدينا). وهي سمحت لفرقنا بالتركيز بالكامل على خدمة الزبناء و تحسين المردودية.
كنا نبحث عن منتج بسيط وبأسعار معقولة وقامت ريموت باس بتلبية ذلك وأكثر. ساعدتنا المنصة على تبسيط وإدارة فرقنا العاملة عن بعد. لقد فهمت منصة ريموت باس احتياجاتنا كشركة، وقدمت لنا الدعم وأصبحت لدينا الثقة بأننا نمتثل للقوانين وأن فرقنا العاملة عن بعد تحصل على دعم ممتاز. الأكيد أننا اتخذنا الخيار الصحيح.
منصة ريموت باس مفيدة للغاية لأنها تُبسط عملية الدفع لمستشارينا، فتُنجز المهمة من خلال نقرتين إلى ثلاث نقرات بسيطة. إنها سهلة الاستخدام ومباشرة. أهم شيء هو أنها تقضي على أي مخاطر متعلقة بالامتثال ، وتقلص وقت إنجاز عملية التحقق المطولة. عمومًا، منصة ممتازة، وأوصي بها للمؤسسات الأخرى.
هذه الخدمة مفيدة بشكل لا يصدق بالنسبة لنا حيث قمنا بتوسيع نطاق فريقنا على مستوى العالم. وهي تترك انطباعًا أوليًا رائعًا عند إعداد الفرق العاملة عن بعد. كل شيء مركَّز في مكان واحد. أحببتها!
يشكل عملنا مع ريموت باس شراكة قائمة على الثقة والمصداقية، ونحن نفتخر بوجودها. من خلال خدمات ريموت باس، تُدار عملية إعداد الموظفين وكشوف الرواتب لفريقنا العالمي بسهولة ويشعر موظفونا بالأمان والاهتمام.
ذهلت على الفور بواجهة المستخدم لمنصة ريموت باس، فهي سهلة الاستخدام للغاية والتعليقات التي تلقيتها من الموظفين عن بُعد كانت ممتازة. لقد عملت في مجال تزويد العقود والموظفين عن بعد للعملاء في الشرق الأوسط على مدى عدة سنوات، واعتدت على إنجاز مهام كشوف الرواتب والامتثال بشكلٍ يدوي وهو أمر شاق للغاية. بعد مشاهدة عرض توضيحي واحد من الفريق في ريموت باس، استبدلت المزود آنذاك بريموت باس، إذ قدمت لي المنصة قيمة هائلة وخدمة رائعة.
Pakistan offers access to a large tech-savvy workforce with competitive hiring costs. Its growing startup scene makes it attractive for building remote and local teams.
To hire successfully, you'll need to understand labor laws, payroll registration, and social security requirements. This guide explains how to hire and pay employees in Pakistan while staying compliant.
RemotePass makes hiring in Pakistan simple. We handle compliance, contracts, and payroll. You focus on building your business.
.png)
Termination: Employment can end with cause or without, but the process and benefits differ.
Foreign Worker Coverage: Expats are generally exempt from EOBI and provincial social schemes.
Insurance: Private health insurance isn't mandatory, though some provinces provide employer-funded coverage.
Every employment contract in Pakistan must include the following key details to remain compliant with local labor laws:
Employee Information
Hiring contractors? Learn how to avoid misclassification risks in Pakistan.
Managing payroll in Pakistan means handling social contributions, income tax, and reporting on tight schedules. The rules are straightforward once you know how they fit together. Here's how it works:
Salary currency
Pakistani Rupee (PKR, Rs)
Minimum Wage
Federal minimum wage is PKR 37,000 per month (FY 2025–26), applicable nationally.
Hours per Week
48 hours per week / 8 hours per day
Payroll Frequency
Monthly
Weekdays
Monday through Saturday
Mandatory Bonuses
Not required
Basic Salary
~%60-70 (Mandatory component)
House Rent Allowance (HRA)
~30-40% (Required if company housing is not provided)
Medical Allowance
Fixed or with a percentage of basic salary (Taxable if exceeding PKR 150,000 annually)
Conveyance Allowance
Optional (Non-taxable up to PKR 2,400 per month)
Other Allowances
Varies (Bonuses, utilities, fuel, etc. Taxable unless exempt)
Employer Cost
~6–7%
Employer Cost
Employees’ Old-Age Benefits Institution (EOBI) – National Pension Scheme:
Covers all employees in formal sector establishments with five or more workers. The EOBI calculates contributions using the minimum wage, not the actual salary, under the latest federal and provincial rules.
Benefits include: Old‑age pension (available at age 60 for men, 55 for women with ≥15 yrs), invalidity and survivors’ pension, or a one-time old-age grant. Expats aren’t covered.
Employer contribution (based on the 1 July 2024 minimum wage of PKR 37,000): 5% of the minimum wage (PKR 1,850 per month).
Provincial Social Security Schemes (e.g. PESSI, SESSI):
These apply in provinces like Punjab, Sindh, KP and Balochistan.
Employers contribute 6% of the gross wage, subject to caps set by each province (for example, Punjab applies the rate to wages up to PKR 37,000 per month).
The Federal Board of Revenue (FBR) administers income tax on salaries. Employers withhold tax at source each month under the PAYE system. Progressive tax rates apply and are updated annually through the Federal Budget.
Employees’ Old-Age Benefits Institution (EOBI) – National Pension Scheme:
1% of minimum wage = PKR 370/month
Expat aren’t eligible for EOIB/PESSI.
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 - 1,200,000 | 5% of amount exceeding 600,000 |
| 1,200,001 - 2,400,000 | PKR 30,000 + 12.5% of amount exceeding 1,200,000 |
| 2,400,001 - 3,600,000 | PKR 180,000 + 20% of amount exceeding 2,400,000 |
| Above 3,600,000 | PKR 420,000 + 25% of amount exceeding 3,600,000 |
| Benefits | Mandatory? | Notes |
|---|---|---|
| Health Insurance | No |
No mandatory government-provided health insurance for private-sector employees. Provincial Social Security Institutions (e.g., PESSI in Punjab, SESSI in Sindh) provide healthcare benefits to registered employees in covered industries, funded by employer contributions (6%). Coverage includes medical treatment, maternity care, disability benefits for insured employees earning up to provincial wage caps. |
| Pension / Social Security | Yes |
Employees’ Old-Age Benefits Institution (EOBI) is the statutory pension scheme providing old-age, invalidity, and survivors’ pensions. Eligibility requires a minimum contribution period (usually 15 years). Applies to all employees in establishments with ≥5 workers. Provincial Social Security Schemes (PESSI, SESSI, etc.) are employer-funded (6% contribution) and cover medical, maternity, and disability benefits. |
| Other Statutory Benefits | No |
Workers’ Compensation & Death Benefits Establishments with 20+ employees must pay annual profit bonus to eligible workmen who have worked at least 90 days. |
Annual leave
Employees who complete 12 months of continuous service earn 14 consecutive days of paid annual leave. Unused leave must be carried forward (up to 14–30 days, depending on provincial rules) and paid out on termination.
Public holidays
Pakistan observes 13–17 public holidays annually, including national events such asPakistan Day (March 23) and Independence Day (August 14) along with major religious holidays like Eid and Ashura.
Sick Leave
Casual Leave: Employees receive up to 10 days of paid casual leave per year, usually for urgent personal reasons.. Prior notice is required, except in emergencies.
Sick leave provides up to 16 days per year at half pay, with a medical certificate required for absences longer than two days.
For employees covered under Provincial Employees’ Social Security Ordinances, sick leave benefits can extend up to 121 days for ordinary illness (typically at 75% of wages, or 50% in KP and Balochistan) and up to 365 days at full pay for serious illnesses such as tuberculosis or cancer.
Maternity Leave
Female employees are entitled to:
Paternity Leave
Male employees are entitled to take up to 30 days of fully paid paternity leave for the first three separate births. Additional leave for later births may be granted as unpaid, depending on company policy.
Other Types of Leave

In Pakistan, every employment ending, whether by resignation or dismissal, must follow the law’s structure for notice, settlement, and records. The outline below shows what this means in practice.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Employee
Resignations
Termination
with Cause
Termination
without Cause
Mutual Termination
Agreement
Fixed Term
Contract
Pakistani Employee Resignation
Form
Written notice.
Notice period
Employees intending to resign are required to provide their employer with a 30-day notice period.
End-of-Service Benefits
Severance/Gratuity
Other Benefits
Upon resignation, employers must settle all dues, including:
Final Payment Timing and Compliance
Final Payment Deadline: Employers must pay all final dues within a few days of the employee’s last working day.
Employer Termination With Cause in Pakistan
Acceptable grounds
The law allows employers to dismiss an employee for serious misconduct such as fraud, theft, or insubordination. A fair process must be followed, including a show-cause notice, an inquiry, and a written explanation of the decision.
Notice
Under the Industrial and Commercial Employment Ordinance, employers can terminate an employee’s contract without notice in proven cases of misconduct.
End-of-Service Benefits
Severance
Employers can forfeit gratuity if the termination for cause is lawful, and all disciplinary procedures under the Standing Orders have been followed.
Other Benefits
Employers are obligated to provide permanent employees with a written termination notice detailing the reasons for dismissal, regardless of the cause.
Employer Termination Without Cause in Pakistan
Acceptance Grounds
The law allows employers to terminate an employee without cause, as long as they issue a termination letter with a valid, documented reason such as poor performance or business restructuring.
Notice
End-of-Service Benefits
Severance/Gratuity
Other Benefits
Employers must provide permanent employees with a written termination notice detailing the reasons for dismissal, regardless of the cause.
Mutual Termination Agreements (MTAs) in Pakistan
These agreements are valid under Pakistani contract law (Contract Act, 1872), provided they involve free consent and lawful terms.
Offboarding Process for the End of Fixed-term Contracts in Pakistan
If the Fixed-Term Contract Ends Normally
Under Pakistan’s Industrial Relations Ordinance (IRO) and related regulations, when a fixed‑term contract concludes on its agreed date, no additional compensation or severance is required-unless the employment contract itself says otherwise.
If the Fixed-Term Contract Ends Normally
When an employer ends a fixed‑term contract prior to its scheduled end, the following legal principles apply:
Notice or Pay in Lieu
Severance Pay (Gratuity)
Employees who complete at least one year of service are entitled to severance/gratuity pay: typically one month’s salary per year of service, or as per contract terms.
Personal Details
Name, contact information, and role of the employee.
From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.
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.

Got Questions? Find Answers Here
Yes, using an Employer of Record (EOR) like RemotePass allows you to legally hire and pay workers in Pakistan without establishing a local entity.
The federal minimum wage is PKR 37,000/month as of FY 2025–26. Provincial rates may vary but must not fall below this threshold.
No, it's not mandatory. However, provincial social security schemes like PESSI and SESSI provide health coverage funded by the employer.
Employees with at least one year of service are entitled to 30 days’ wages per year worked. Partial years over 6 months count as full years.
You must withhold monthly income taxes per Pakistan’s progressive PAYE system. Social contributions like EOBI (1%) are also deducted from employees.
Probation is up to 3 months. The standard notice period is 30 days, both for resignation and termination (unless for cause).
Employees get 10 days of casual leave and up to 16 days of sick leave per year. Sick leave can extend up to 121–365 days under social security.
There’s no statutory requirement for bonuses, but companies with over 20 employees must pay an annual profit bonus to eligible workers.
General Sales Tax (GST) is 17%. Some provinces impose a Service Sales Tax (SST) between 13–16% on services.
RemotePass handles compliant onboarding, payroll, taxation, benefits, and offboarding without the need to set up a local entity.
أحببت هذه المنصة! ريموت باس هي أداة ضرورية بالنسبة لنا، وتقدم لنا ميزة الحصول على كل شيء بسهولة في مكان واحد. كان استخدام منصة ريموت باس فعالًا للغاية، إذ إن المنصة سهلة الاستخدام وسريعة، ويشكل التواصل مع خدمة العملاء البنيان الأساسي و الميزة الخاصة في العلاقة التي تربطنا بمنصة ريموت باس .
لقد كانت ريموت باس أحد أفضل المنصات المفيدة وسهلة الاستخدام التي عملت معها في السنوات القليلة الماضية!
منصة ريموت باس فعالة للغاية بالنسبة لنا، إذ يعمل ما لا يقل عن 60٪ من فريقنا عن بعد. وهي مفيدة بشكلٍ خاص لتتبع عمليات الدفع للجميع أو للتحقق من وجود تعويضات، فلا داعي لفعل ذلك يدويًا لكل فرد كل مرة. منصة ريموت-باس هي حقًا ممتازة لأننا نلتزم بالقوانين المحلية في مواقع إقامة كل عضو من أعضائنا العاملين عن بعد.
بفضل منصة ريموت باس، تمكنت شركة سويڤل من أن تصبح أكثر مرونة، مما سمح لنا بتوظيف أفضل المواهب عن بعد. نعتبر ريموت باس شريكًا رائعًا لتتبع خطط نمو سويڤل بسرعة في بلدان متعددة. نوجه شكرًا خاصًا لفريق الدعم على الخدمة المثالية التي يقدمها.
خدمة رائعة للغاية. نحب هذه المنصة وسنستخدمها في السنوات القادمة. كما أن خدمة العملاء ناجحة وعظيمة!
ما أروع النظام الذي صنعتموه يا رفاق! فهو سهل الاستخدام ونحب على وجه الخصوص خاصية الإشعارات الآلية، حيث يتم تبليغ الموظفين تلقائيًا بالدفع ويتلقون الدفعات في غضون ساعتين بعد إخطارهم بدلًا من فعل ذلك يدويًا. شكرًا على دعمكم المستمر.
تجربتنا مع منصة ريموت باس كانت مذهلة والدعم الذي قدمته لي في معاملتي الأخيرة كان رائعًا. أحببت حقًا خاصية إشعار المتابعة وتزويدي بالتفاصيل. هذا أمر رائع للغاية. شكرًا على مساعدتكم.
شكل استخدام ريموت باس تغييرًا جذريًا في كيفية إنجاز عملياتنا، وأصبح لدينا شريكًا موثوقًا به يساندنا في المناطق المعقدة ويقدم لنا الدعم بكفاءة (كان هذا في السابق مشكلة كبيرة لدينا). وهي سمحت لفرقنا بالتركيز بالكامل على خدمة الزبناء و تحسين المردودية.
كنا نبحث عن منتج بسيط وبأسعار معقولة وقامت ريموت باس بتلبية ذلك وأكثر. ساعدتنا المنصة على تبسيط وإدارة فرقنا العاملة عن بعد. لقد فهمت منصة ريموت باس احتياجاتنا كشركة، وقدمت لنا الدعم وأصبحت لدينا الثقة بأننا نمتثل للقوانين وأن فرقنا العاملة عن بعد تحصل على دعم ممتاز. الأكيد أننا اتخذنا الخيار الصحيح.
منصة ريموت باس مفيدة للغاية لأنها تُبسط عملية الدفع لمستشارينا، فتُنجز المهمة من خلال نقرتين إلى ثلاث نقرات بسيطة. إنها سهلة الاستخدام ومباشرة. أهم شيء هو أنها تقضي على أي مخاطر متعلقة بالامتثال ، وتقلص وقت إنجاز عملية التحقق المطولة. عمومًا، منصة ممتازة، وأوصي بها للمؤسسات الأخرى.
هذه الخدمة مفيدة بشكل لا يصدق بالنسبة لنا حيث قمنا بتوسيع نطاق فريقنا على مستوى العالم. وهي تترك انطباعًا أوليًا رائعًا عند إعداد الفرق العاملة عن بعد. كل شيء مركَّز في مكان واحد. أحببتها!
يشكل عملنا مع ريموت باس شراكة قائمة على الثقة والمصداقية، ونحن نفتخر بوجودها. من خلال خدمات ريموت باس، تُدار عملية إعداد الموظفين وكشوف الرواتب لفريقنا العالمي بسهولة ويشعر موظفونا بالأمان والاهتمام.
ذهلت على الفور بواجهة المستخدم لمنصة ريموت باس، فهي سهلة الاستخدام للغاية والتعليقات التي تلقيتها من الموظفين عن بُعد كانت ممتازة. لقد عملت في مجال تزويد العقود والموظفين عن بعد للعملاء في الشرق الأوسط على مدى عدة سنوات، واعتدت على إنجاز مهام كشوف الرواتب والامتثال بشكلٍ يدوي وهو أمر شاق للغاية. بعد مشاهدة عرض توضيحي واحد من الفريق في ريموت باس، استبدلت المزود آنذاك بريموت باس، إذ قدمت لي المنصة قيمة هائلة وخدمة رائعة.

