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EOR Partners in Pakistan
Employ in Pakistan
Pakistan, as the fifth most populous country in the world, offers significant opportunities for global expansion. Its strategic location at the crossroads of South Asia, Central Asia, and the Middle East, combined with a youthful and growing labor force, makes Pakistan a key market for businesses looking to establish a presence in the region. The government has taken various initiatives to encourage foreign investment, particularly in industries like technology, manufacturing, and infrastructure.
About the Country of Pakistan
Pakistan's economy is diverse, with agriculture, textiles, and services sectors playing pivotal roles. As a member of the South Asian Association for Regional Cooperation (SAARC) and with close ties to China through the China-Pakistan Economic Corridor (CPEC), Pakistan is an attractive destination for foreign investment, particularly for companies looking to expand their reach into emerging markets. The government is actively promoting economic reforms, improving infrastructure, and modernizing its industrial base to attract international companies.
235.8 Million
Population
Rupee(PKR)
Currency
374.7 Billion
Global Domestic Product
Why Choose Pakistan For Global Expansion?
Pakistan is a gateway to regional markets, with a large, youthful workforce and low labor costs. The country’s ongoing infrastructure projects, such as CPEC, and its digital transformation efforts provide numerous opportunities for businesses to grow and expand. Additionally, Pakistan’s strategic location makes it an ideal hub for businesses looking to access markets in the Middle East and Central Asia. The country’s improving regulatory framework and government incentives further encourage foreign direct investment.
Employment Landscape
Pakistan’s employment landscape is characterized by a mix of formal and informal sectors. While agriculture employs a large portion of the workforce, urban centers like Karachi, Lahore, and Islamabad have seen growth in industries such as IT, telecommunications, finance, and manufacturing. Pakistan has labor laws designed to protect workers’ rights, with minimum wage regulations, employee benefits, and job security provisions. The workforce is predominantly young and growing, with increasing skills in technology and engineering.
Our Services in Pakistan
We offer end-to-end support for businesses expanding into Pakistan, including payroll management, employment contracts, and compliance with local labor laws. Our services include visa and work permit processing for expatriate employees, employee onboarding and termination, and local benefits administration. We ensure full compliance with statutory requirements, including social security, pensions, and health insurance, providing peace of mind for your operations in Pakistan.
Employment Benefits in Pakistan
Employers in Pakistan are required to provide benefits such as contributions to social security schemes (EOBI and Social Security), group life insurance, and health coverage. Additionally, many companies offer perks like transportation allowances, meal subsidies, and performance-based bonuses to attract top talent. Employers may also provide private health insurance, particularly for employees in higher-skilled sectors.
Annual Leave
Employees in Pakistan are entitled to a minimum of 14 days of paid annual leave after completing one year of continuous service. This leave can be taken at any time, with prior notice, and unused leave can often be carried over into the next year, subject to company policy.
Sick Leave
Employees are entitled to paid sick leave, generally up to 10 days per year. While specific policies may vary between employers, it is standard for companies to offer paid sick leave at full salary for short-term illnesses. Additional sick leave or long-term medical leave may be negotiated between the employer and the employee, often with reduced pay or unpaid leave provisions.
Additional Benefits
Many companies in Pakistan offer additional benefits beyond statutory requirements, including housing allowances, travel stipends, professional development opportunities, and performance-related bonuses. Flexible work arrangements and remote working options are also becoming more common, particularly in the tech sector.
Work Hours and Breaks
The standard workweek in Pakistan is 48 hours, typically distributed over six days. Employees working in excess of the standard workweek are entitled to overtime compensation, usually at a higher rate. Workers are generally entitled to at least one rest break during a workday, often a lunch break, and religious prayers are factored into the working hours.
Salary Tax Table
| Taxable Base | Tax Liability | Excess of Taxable Base | Tax Rate |
|---|---|---|---|
| 0 - 600,000 | 0 | 0 | 0% |
| 600,001 - 1,200,000 | 0 | Amount over 600,000 | 5% |
| 1,200,001 - 1,800,000 | 30,000 | Amount over 1,200,000 | 10% |
| 1,800,001 - 2,500,000 | 90,000 | Amount over 1,800,000 | 15% |
| 2,500,001 - 3,500,000 | 195,000 | Amount over 2,500,000 | 17.5% |
| 3,500,001 - 5,000,000 | 370,000 | Amount over 3,500,000 | 20% |
| 5,000,001 and above | 670,000 | Amount over 5,000,000 | 25% |
*All figures based on local currency
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