Hire and pay employees in
Pakistan, hassle-free
With Deel, your business can easily hire employees in Pakistan. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.
The average onboarding time frame in Pakistan is 1 day with Deel.
Currency
Pakistan Rupee (PKR)
Capital
Islamabad
Official Language
Urdu & English
Payroll Cycle
Monthly
Onboard, pay and manage employees in Pakistan with Deel.
Usually, to hire in Pakistan, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Pakistan quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Pakistan
built right in
Deel allows you to provide localized benefits for employees in Pakistan within minutes. All in one manageable online dashboard.
- Pension Fund
- Social Security
- Disability Insurance
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
- Global Life Insurance - Allianz
Our quickstart guide to hiring in Pakistan
Navigate the tabs below to learn everything you need to know about hiring an employee in Pakistan
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
Annual Taxable Income |
Tax Rate |
PKR 0 to 600,000 |
0% |
PKR 600,000 to 1,200,000 |
5% |
PKR 1,200,000 to 2,400,000 |
15% |
PKR - 2,400,000 to 3,600,000 |
25% |
PKR 3,600,000 to 6,000,000 |
30% |
Over PKR 6,000,000 |
35% |
Payroll Cost
- Sindh Employees’ Social Security Institution (SESSI) - 6.00%, only for salaries lower than PKR 30,000
- Gratuity Fund Contribution - 8.33%
- Life insurance - PKR 608
- EOBI (employee-old-age-benefit) - PKR 1,250
- Festival Bonus/13th Salary: 8.33%
Please note: some contributions have limits, so percentages may vary.
These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.
Overtime Pay & Maximum Hours
- 200% of the hourly rate, the first three hours.
- 300% of the hourly rate, for public holidays
Maternity Leave
Paternity Leave
Parental Leave
Sick Leave
Termination Requirements
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Pakistan can be complex. There is no at-will termination in Pakistan for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
Notice Period
Severance for Employees
In Pakistan, all employees who are terminated are entitled to severance pay unless it was for misconduct. Severance pay is 30 days of salary per year of service up to six months based compensation.
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Public Holidays
Pakistan celebrates both 17 national and 22 regional holidays based on the location of the employee.
National public holidays include:
- Kashmir Day
- Pakistan Day
- Eid ul-Fitr (3 days)
- Labor Day
- Youm-e-Takbeer
- Eid ul-Azha (3 days)
- Ashura (2 days)
- Independence Day
- Milad un-Nabi
- Allama Iqbal Day
- Quiad-e-Azam Day/Christmas
- Day after Christmas (for Christians only)
Onboarding
Employment Contract Details
A contract must include:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
Probation Period
Hiring in Pakistan, hassle-free
With Deel, your business can easily hire employees in Pakistan with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Pakistan and 150+ countries.
Starting at 599 USD
Management fee
17-23%
Estimate Employer Cost
*of employee salary
Want to learn the cost of hiring an employee in Pakistan?
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