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Pakistan offers a large, young, and increasingly tech-savvy workforce at competitive salary levels compared with many other markets. Your total cost to hire in Pakistan includes gross salary plus mandatory employer contributions to social security (EOBI and, where applicable, provincial social security institutions) and payroll taxes or levies.
Below are average monthly costs for popular roles in 2026, combining typical market salaries in major cities with common employer-side social-security and payroll costs, which often add roughly 8%-14% on top of gross pay depending on province and scheme coverage. Figures are estimates only and will vary by location, seniority, sector, benefits, and whether you hire in Karachi, Lahore, Islamabad, or secondary cities. USD values assume an exchange rate of roughly PKR 280 = USD 1 and are rounded.
- Software Engineer:
Average salary PKR 250,000 (≈ USD 890) + employer contributions PKR 30,000 (≈ USD 110) = Estimated Total Monthly Cost PKR 280,000 (≈ USD 1,000). Costs differ significantly between product-focused roles for export markets and support or maintenance positions, and senior engineers with in-demand stacks or international experience can command much higher packages. - Product Manager:
Average salary PKR 350,000 (≈ USD 1,250) + employer contributions PKR 42,000 (≈ USD 150) = Estimated Total Monthly Cost PKR 392,000 (≈ USD 1,400). Product leaders working in SaaS, fintech, and high-growth startups often negotiate higher base pay plus performance bonuses, especially in Karachi, Lahore, and Islamabad. - Marketing Specialist:
Average salary PKR 180,000 (≈ USD 640) + employer contributions PKR 20,000 (≈ USD 70) = Estimated Total Monthly Cost PKR 200,000 (≈ USD 710). Digital marketers with strong performance, SEO, and paid-ads skills serving international clients typically sit at the top of the range, while purely local-market roles may be more affordable. - Customer Support Representative:
Average salary PKR 110,000 (≈ USD 390) + employer contributions PKR 12,000 (≈ USD 45) = Estimated Total Monthly Cost PKR 122,000 (≈ USD 435). English-speaking agents handling overseas customers, night shifts, or complex technical products generally receive higher compensation and may receive shift or attendance allowances. - HR Manager:
Average salary PKR 300,000 (≈ USD 1,070) + employer contributions PKR 34,000 (≈ USD 120) = Estimated Total Monthly Cost PKR 334,000 (≈ USD 1,190). HR leaders experienced in Pakistan's labor laws, social-security schemes, and multinational HR standards command a premium, particularly in larger tech, BPO, and services organizations.
Figures may differ depending on exchange rates, provincial rules, and your internal policies on bonuses, health coverage, allowances, and equity or long-term incentives.
💡 Curious how much it would cost to hire your next role in Pakistan? Use our Salary Benchmarking Tool to get an instant, role-specific estimate - including taxes and compliance costs.
When you hire in Pakistan, salary is only part of your cost. You also need to budget for social-security contributions, leave entitlements, public holidays, potential bonuses, and province-specific rules that influence your overall payroll spend.
In 2026, mandatory employer social-security and related contributions typically add about 8%-14% on top of gross salary, before any optional benefits such as private health insurance, meal allowances, or transport support.
Leave and Paid Time Off
Under Pakistan's core labor legislation, employees generally receive at least 14 calendar days of paid annual leave after one year of continuous service, plus paid sick leave and casual leave entitlements depending on provincial law. You also need to account for roughly 12-15 widely observed public holidays, including religious and national days, which are usually paid days off or attract premium rates if employees must work.
Mandatory Employer Contributions
Key statutory employer costs in Pakistan include contributions to the Employees Old-Age Benefits Institution (EOBI) and, where applicable, provincial Employees Social Security Institutions that fund medical and related benefits. While the monthly amounts are often capped and relatively modest compared with salary, they are mandatory for eligible establishments and employees and must be factored into your hiring budget.
Probation and Notice Periods
Probation periods in Pakistan are commonly up to three months and may be extended by contract, with somewhat more flexible termination rules during this time, though good documentation remains important. After confirmation, typical contractual notice periods for white-collar employees range from 30 to 90 days, and you may owe pay in lieu of notice and accrued leave payouts, which increase the effective cost of separations.
Compensation Structure and Bonuses
Compensation packages in Pakistan are usually structured around a basic salary plus allowances such as house rent, utilities, medical, and transport, which can have tax and social-security implications. A 13th-month salary is not mandated by law and is not universal practice, but many employers offer annual performance bonuses or festival-related payments, so you should decide whether these will form part of your total rewards strategy and budget accordingly.
Social Security and Tax Compliance
As an employer in Pakistan, you are responsible for registering with EOBI and the relevant provincial social-security institutions where coverage applies, then calculating and remitting both employer contributions and employee deductions on time. You must also withhold income tax under the salary tax regime each month, remit it to the Federal Board of Revenue, and provide accurate payroll records and annual certificates, with penalties possible for late or incorrect filings.
Hiring and Engagement Models
If your company does not have a local entity in Pakistan, you can use an Employer of Record to hire staff compliantly while Playroll or another partner becomes the legal employer on paper. If you operate through your own entity, you will hire employees directly and need to manage employment contracts, payroll, tax, and social security compliance in-house or via a local provider, ensuring you understand how each choice affects your total cost to hire.
Bring them on board seamlessly with Playroll. Our legal experts handle compliance so you don’t have to.
Book a DemoHere are six actionable ways to make your hiring strategy more cost-efficient – wherever you’re building your team.
- Plan Around Statutory Contribution Caps
Most countries set salary ceilings for mandatory employer contributions like pensions, healthcare, or unemployment insurance. Once an employee’s earnings exceed that cap, your contribution amount stays fixed. Mapping compensation bands against these limits before finalizing offers helps you remain competitive without paying unnecessary premiums. - Localize Benefits Strategically
Every market values different perks. Instead of applying a global benefits template, align packages to local expectations and cultural norms. In some regions, private healthcare or transport allowances are far more attractive than bonuses or extra paid leave. Prioritize what your team will value most and trim the rest – you’ll keep engagement high while reducing spend. - Consider an Employer of Record (EOR)
Running your own entity can be expensive – local payroll systems, tax filings, and compliance administration add up fast. Partnering with a trusted EOR like Playroll simplifies hiring anywhere in the world. We manage contracts, benefits, payroll, and compliance for you, all under one transparent monthly fee. It’s the easiest way to scale globally without unexpected costs or compliance risks. - Revisit Employment Contract Types and Terms
Not every role needs to be permanent or full-time. Many labor frameworks allow fixed-term or project-based contracts, which can offer both flexibility and cost control. Be intentional about probation periods, notice clauses, and renewal terms – clear definitions reduce risk and prevent costly disputes later. - Explore Cross-Border Hiring Options
If a role doesn’t require strict on-site presence, widen your search to include neighboring or lower-cost markets. With compliant hiring solutions, you can engage top talent in other countries while reducing salary and overhead costs – all without setting up additional legal entities. - Build Internal Mobility
Before recruiting new talent, look at who you already have. Upskilling or promoting existing employees can fill gaps faster and for less cost than external recruitment. This also boosts retention and engagement, since employees see clear career progression within your organization.
What is the average employer cost of hiring in Pakistan in 2026?
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In 2026, average total employer costs in Pakistan for mid-level professionals generally range from PKR 150,000 to PKR 400,000 per month, including salary and mandatory contributions. Senior and specialist roles can cost significantly more once bonuses and benefits are included.
Are there regional or industry-specific variations in employer costs in Pakistan?
Employer costs in Pakistan vary by city and sector, with Karachi, Lahore, and Islamabad and industries like tech, BPO, and finance typically commanding higher salaries. Adjust your Pakistan hiring budget based on location and industry competitiveness.
What is the estimated timeline for hiring in Pakistan?
Hiring in Pakistan usually takes about four to eight weeks, with longer timelines for senior or niche roles. Efficient processes and local recruitment support can help you fill positions in Pakistan more quickly.
What factors impact the cost of hiring in Pakistan?
Hiring costs in Pakistan depend on seniority, location, industry, benefits, and statutory contributions such as EOBI and social security. Your engagement model and compliance approach also shape total employer cost in Pakistan.
How often do employment-cost rules change in Pakistan?
In Pakistan, key employment-cost elements like tax brackets and minimum wages are usually updated annually, and contribution thresholds may change periodically. Regularly tracking Pakistan regulatory updates helps keep your payroll budgets and compliance accurate.
about the author
Jaime Watkins
Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.
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