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What should I know about hiring in Pakistan?
Having a comprehensive grasp of Pakistan’s’ labour regulations, anti-discrimination laws, taxation, and employment agreements is crucial for effectively conducting the hiring process in the country.
Furthermore, employers are responsible for deducting necessary taxes and benefits such as social security from their employees’ wages.
In order to attract the best candidates, employers need to create attractive benefits schemes and opportunities for career advancement. Ultimately, fostering a positive company culture can be achieved by aligning with Pakistan’s local business norms and cultural heritage.
Why is Pakistan a good choice for finding remote employees?
Pakistan has a large and growing pool of skilled professionals in various fields, including software development, design, customer service, and digital marketing.
Moreover, English is widely spoken and understood in Pakistan, making it easier to communicate and collaborate with remote employees, particularly for roles that require strong language skills.
Finally, many Pakistanis are known for their strong work ethic and dedication, which can translate well into remote work environments where self-motivation and discipline are crucial.
How can Native Teams help you hire in Pakistan?
Native Teams offers guidance for the lawful recruitment of fresh team members in Pakistan. Our team of legal professionals will provide aid and a comprehensive understanding of complex labour laws, rules, and even nuances in culture and language. Leveraging our employer of record solutions, you have the opportunity to enhance your benefits and remuneration scheme to match market demands better. Through our collaboration, the hiring processes in Pakistan are guaranteed to be both conformant and efficient.
Hire your first Pakistan employee with Native Teams.
Legal requirements for hiring in Pakistan
Minimum wage
The national monthly minimum wage in Pakistan is PKR 25,000. The province of Punjab and the Islamabad Capital Territory raised the minimum wage up to PKR 32,000.
Contributions & taxes
Employer tax
The total employer cost is 5%.
Corporate tax
The corporate tax rate in Pakistan is 29%.
Employee tax
The total employee tax is 1%.
Income tax
- 0-600,000 PKR — 0%
- 600,000-1,200,000 PKR — 2.5%
- 1,200,001-2,400,000 PKR — 15,000 PKR (+12.5% on excess)
- 2,400,001-3,600,000 PKR — 165,000 PKR (+20% on excess)
- 3,600,001-6,000,000 PKR — 405,000 PKR (+25% on excess)
- 6,000,001-12,000,000 PKR — 1,005,000 PKR (+32.5% on excess)
- 12,000,001 PKR and above — 2,955,000 PKR (+35% on excess)
To calculate the salary and taxes in Pakistan please click here.
Payroll cycle
In Pakistan, the payroll frequency can be on a daily, weekly, bi-monthly, or monthly basis. The employee must receive a salary at least once a month.
Is there a 13th salary in Pakistan?
A 13th salary isn’t legally required in Pakistan.
Labor rules
Probation period
In Pakistan, probation periods typically last 3 months.
Notice period
Both employers and employees must give a 30 days notice before terminating the employment contract.
Severance period
Employees are entitled to severance pay amounting to 30 days’ wages for each year of completed service following the employment termination.
Working hours
The standard working week in Pakistan is from Monday to Friday, 45 hours a week, 9 hours a day.
Leave and benefits
Public holidays
The following is a list of the public holidays celebrated in Pakistan:
- Kashmir Solidarity Day
- Pakistan Day
- Eid al-Fitr
- Labour Day
- Eid al-Adha
- Ashura
- Independence Day of Pakistan
- Mawlid
- Christmas Day
- Quaid-e-Azam’s Birthday
Sick leave
Employees can take up to 10 days of casual sick leave in case of a sudden illness or other urgent purposes.
Maternity leave & Paternity leave
Female employees are entitled to three months of paid maternity leave after working for four months for a single employer before childbirth. Fathers can take one month of paternity leave after the birth of their first three children.
Other leave
Bereavement leave
Employees can have paid leave of one day in the event of the death of a close relative, and proof of a document, like obituary papers, should be provided.
Parental leave
There is no provision regarding parental leave in Pakistan.
Marriage leave
Employees are entitled to 5 days of special leave at the time of marriage.
What are the minimum vacation days?
In Pakistan, employees can take up to 14 calendar days of fully paid annual leave after 12 months of consecutive service.
Insurance
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*
Visa
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Pakistan, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in Pakistan?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
