* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Pakistani Rupee (₨)



Employment Cost

16.7-22.7% + fees of the employee's salary

Annual Leave

14 days

In-demand Specialties*
It And Software Development, Healthcare, Engineering

The Ultimate Guide to Hiring Employees in Pakistan

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Pakistan

Employing in Pakistan requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Pakistan with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Pakistan quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Hiring in Pakistan offers access to a vast and dynamic workforce, with a population of 227 million and a labor force of approximately 72.3 million, providing a diverse talent pool to choose from.

Additionally, the country's cost-effective hiring rates make it an attractive destination for foreign employers seeking to minimize staffing costs while maintaining high-quality output.

Pakistan's economy, driven by trade, services, and agriculture, offers diverse opportunities for businesses looking to expand or establish a presence in the region.

Moreover, employers can benefit from lower Social Security contributions and mandatory employee benefits compared to European standards, further enhancing the appeal of hiring in Pakistan.


Fundamental Aspects of Employment in Pakistan

Employers with more than 20 employees in Pakistan are mandated to provide a written employment contract outlining essential terms such as:

  • Identification of both parties
  • Commencement date (including employment duration for temporary contracts)
  • Job location
  • Job description, duties, and responsibilities
  • Leave entitlement
  • Notice periods

Probationary Period in Pakistan

In the private sector in Pakistan, probation periods typically last from 3 to 6 months, while in the public sector, they may extend up to 2 years. During this period, employers are not obligated to provide notice or reasons for terminating employment.

Working hours in Pakistan

In Pakistan, the standard working hours are 45 hours per week, allowing employees to work up to 9 hours per day.

Overtime in Pakistan

In Pakistan, work exceeding standard weekly hours is considered overtime and regulated by employment contracts or collective agreements. Overtime is compensated at 200% of the salary for hours beyond 9 in a day, while overtime on public holidays is compensated at 300% of the regular pay.

Navigating Key Aspects of Payroll in Pakistan

Pakistan has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January- 31 December

Fiscal Year in Pakistan

1 January- 31 December is the 12-month accounting period that businesses in Pakistan use for financial and tax reporting purposes.

Payroll Cycle in Pakistan

The payroll cycle in Pakistan is usually bi-monthly/monthly, with employees being paid as stipulated in the employment contract.
138.90 PKR p/h

Minimum Wage in Pakistan

The minimum wage for employees in Pakistan is typically 138.90 PKR per hour, amounting to ~25,000 PKR per month for a typical 45 hour work week.

Minimum wages and salaries in Pakistan

Pakistan's national minimum wage is set at 25,000 PKR per month. In Punjab, the minimum wage has been raised to 32,000 PKR, while wages for semi-skilled, skilled, and highly skilled workers are set to increase to 35,000 PKR.

Bonus Payments in Pakistan

Employers are not legally required to make 13th-month salary payments in Pakistan.

Comprehensive Overview of Employment Taxes in Pakistan

Understanding the tax obligations for both employers and employees is crucial when operating in Pakistan's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Pakistan.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.7-22.7% + fees of the employee's salary on top of the employee salary in Pakistan.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Pakistan, the typical estimation for employee payroll contributions cost is around 1% plus 40-rupee per month.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Individual income tax in Pakistan varies from 0% to 35%, calculated using progressive rates based on factors such as household status and the number of children.

Tax Rate Income Bracket

Pension in Pakistan

Employers contribute 5%, employees contribute 1% towards old-age pensions, except in Sindh. Eligibility starts at 60 for men, 55 for women, requiring 15 years of contributions. Beneficiaries receive 2% of average monthly earnings per year of contribution.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Pakistan tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Pakistan

When it comes to terminating employment in Pakistan, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Termination procedures depend on the employment and collective agreements, as well as the contract type and reason for dismissal. Both parties must give written notice, and the cause for dismissal needs to be justified. Accepted terminations include:

  • Voluntary resignation by the employee
  • Termination by mutual agreement
  • Poor work performance
  • Expiration of the contract

Notice Period

In Pakistan, both employees and employers are required to give a one-month notice period to terminate an employment contract. Temporary workers are exempt from this requirement. If notice isn't provided, the employer must pay a monthly salary in lieu of notice.

Severance Pay

Employees in Pakistan typically receive severance pay equivalent to 30 days' wages for each year of completed service, except in cases where termination was due to misconduct.

Annual Leave Entitlements and Company Policies in Pakistan

The annual leave entitlement in Pakistan is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Pakistan

Pakistan observes a total of 16 national holidays, along with 22 regional holidays, varying based on the employee's location. Some of the national public holidays include:

Holiday Date

Paid Time Off in Pakistan

Maternity Leave in Pakistan

Paternity Leave in Pakistan

Sick Leave in Pakistan

Parental Leave In Pakistan

Pakistan's Benefits Built Into Playroll

Competitive benefits package in Pakistan

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Pakistan's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Pakistan

Make your benefits package in Pakistan a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Pakistan

Playroll allows you to provide localized benefits for employees in Pakistan within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Pakistan create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Pakistan

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Pakistan.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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