Hire employees and contractors in Pakistan

Remote’s guide to employing in Pakistan.

  • Capital city

    Islamabad

  • Currency

    Pakistani rupee
    (₨., PKR)

  • Population size

    212,228,286
    (est. 2018)

  • Languages spoken

    Urdu, English, Punjabi

  • Availability

    Remote-Owned Entity in 2022

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

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 good ol’ 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.

Map of Pakistan
  • Capital city

    Islamabad

  • Currency

    Pakistani rupee
    (₨., PKR)

  • Languages spoken

    Urdu, English, Punjabi

  • Population size

    212,228,286 (est. 2018)

  • Ease of doing business

    Medium

  • Cost of living index

    21.59 (2021)

  • Payroll frequency

    Bi-Monthly/Monthly

  • VAT - standard rate

    17%

  • GDP - real growth rate

    1.0% (2019)

Grow your team in Pakistan with Remote

To employ in Pakistan, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Pakistan can get complicated, especially without established local relationships. 

Remote’s global employment solution makes it easy for your company to employ workers in Pakistan quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Like many other countries, Pakistan treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

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 17,500 PKR or roughly $102.

Payroll cycle

Wages can be paid as frequently as possible but must be disbursed at least once a month.

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

Calculate the cost to hire an employee
in Pakistan

Taxes in Pakistan

Learn how employment taxes affect your payroll and your employees’ paychecks in Pakistan.

  • Employer

    • 5%: Pension

  • Employee

    • 1%: Pension

      40 PKR: Healthcare insurance

Types of leave

Paid time off

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.

Public holidays

There are 17 public holidays. Employees can earn up to double their normal wages if they’re required to work on a public holiday.

Sick leave

Sick leave in Pakistan is divided into normal and aggravated sick leave.

Ailing employees can take up to 24 days of normal sick leave with 16 days fully paid. The remaining eight days are compensated at a rate equivalent to 50% of the worker’s normal wages.

Aggravated sick leave lasts an entire year with full wages and only arises when an employee is diagnosed with life-threatening illnesses like cancer or tuberculosis.

Employees must have made healthcare insurance contributions for the preceding 90 days to qualify for sickness benefits.

Maternity leave

Female employees are entitled to 18 weeks of paid maternity leave, provided they made healthcare contributions for at least 180 days in the year prior to the delivery.

Paternity/parental leave

Fathers are entitled to an entire month’s leave for the birth of their first three children.

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.

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