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Pakistan is an emerging talent hub in South Asia, known for its large, youthful population, English proficiency, and cost-effective workforce. With a growing number of tech professionals and increasing digital adoption, it’s becoming an attractive destination for global companies looking to hire remotely or scale operations without breaking the bank.
Pakistan offers a growing, cost-efficient workforce with a solid base of English-speaking professionals, especially in IT and services. Employers must comply with local labour laws that govern wages, contracts, taxation, and employee protections.
Get details on Pakistan’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in Pakistan must be in writing and should clearly state the terms of employment, including working hours, duties, salary, and benefits. Both fixed-term and permanent contracts are allowed.
Notice periods: Usually 1 month.
Termination of employment: Permissible through resignation, misconduct, redundancy, or mutual agreement
Want to learn more about employment contracts in Pakistan? Get our full template now!
Employers in Pakistan are legally obligated to provide certain mandatory benefits. To stay competitive, many businesses offer additional perks.
Mandatory benefits: Life insurance, paid vacations, religious holidays, etc.
Common perks: Health insurance, transport allowance, meal allowance, bonuses, professional development, flexible working hours, and company events.
Leave policies: Annual leave, sick leave, casual leave, maternity leave, paternity leave, bereavement leave, marriage leave, pilgrimage leave.
Want to learn more about all the employee benefits available in Pakistan?
In Pakistan, employers are responsible for deducting income tax and contributing to the national pension scheme (EOBI). Tax rates vary depending on income levels and regional laws.
Payroll in Pakistan must follow local wage laws and tax deadlines. Salaries must be paid monthly, with payroll taxes withheld and reported accordingly.
Salary payment deadline: By the 10th of the following month (7th for small businesses)
Taxes and contributions payment deadline: Monthly, aligned with salary payment
Payroll declarations deadline: Monthly reporting of taxes and EOBI contributions
Payroll currency: PKR (Pakistani Rupee)
Pakistan’s labour regulations are defined by a mix of federal and provincial laws. These laws govern everything from contracts and wages to benefits and workplace safety.
Total employment cost:
Minimum wage: 37,000 PKR
Probation period: Up to 3 months
Using EOR services in Pakistan allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in Pakistan provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Pakistan but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Pakistan’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Pakistan with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: August 8, 2025
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Freelancers and gig workers in Pakistan are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.