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 BaseTax LiabilityExcess of Taxable BaseTax Rate
0 - 600,000000%
600,001 - 1,200,0000Amount over 600,0005%
1,200,001 - 1,800,00030,000Amount over 1,200,00010%
1,800,001 - 2,500,00090,000Amount over 1,800,00015%
2,500,001 - 3,500,000195,000Amount over 2,500,00017.5%
3,500,001 - 5,000,000370,000Amount over 3,500,00020%
5,000,001 and above670,000Amount over 5,000,00025%

*All figures based on local currency

Using an EOR During a Merger or Acquisition: A Practical Transition Guide

Why Cross-Border Employment Needs Early Attention in M&A A merger or acquisition can change who owns the business, which entity employs the workforce, how payroll...

Hiring Employees in the UAE: What International Employers Need to Prepare

Why the UAE Is Attractive for International Hiring The United Arab Emirates is a regional hub for technology, finance, logistics, professional services, construction...

International Employee Benefits: How to Build a Fair Global Approach

Why Benefits Become Complex Across Borders A company may want one recognisable employee experience worldwide, but benefits are shaped by local law, labour-market...

Global Workforce Compliance Calendar: What HR and Finance Should Track

Why a Calendar Matters for Global Employment When a business employs people in several countries, compliance tasks rarely fall on the same date or follow the same...

Ending Employment Overseas: A Practical Checklist for International Employers

Why International Exits Need Local Planning Ending an employment relationship is rarely just an HR meeting and a final payslip. Countries differ in notice rules,...

International Supplier Payments: How Businesses Can Improve Cash Flow and Simplify FX

A practical guide to managing international supplier payments, currencies and working capital As businesses become increasingly international, paying suppliers across...

Hiring Internationally Through an EOR: Questions Finance Should Ask Before Approval

Why Finance Should Review More Than the Monthly Fee When a business wants to hire overseas, attention often goes straight to the EOR’s monthly service fee. That figure...
Laptop displaying a world map on a wooden desk, representing Employer of Record services for international hiring

Is EOR the Right Fit?

How to choose the best route for hiring or supporting workers abroad Finding and retaining the right talent sometimes requires a business to expand their reach into new...
Switching EOR Providers Without Disrupting Your Employees

Switching EOR Providers Without Disrupting Your Employees

Companies rarely review an Employer of Record relationship when everything is running perfectly. The trigger is usually rising fees, poor support, payroll problems,...
Moving an Employee to Another Country Without Losing Them

Moving an Employee to Another Country Without Losing Them: A Guide for HR Teams

An employee telling HR, “I’m moving abroad - can I keep my job?” is no longer unusual. Family commitments, lifestyle choices, a partner’s career or a return home can...

Get in Touch

This field is for validation purposes and should be left unchanged.
Name