Hire and pay employees in

Pakistan, hassle-free

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.

Download the Guide

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
  • Disability Insurance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

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

The minimum wage is PKR 25,000 per month.

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.

Gross Annual Income Tax Rate (%)
Up to PKR - 600,000 0%
Up to PKR - 1,200,000 5%
Up to PKR - 1,800,000 10%
Up to PKR - 2,500,000 15%
Up to PKR - 3,500,000 17.5%
Up to PKR - 5,000,000 20%
Up to PKR - 8,000,000 22.5%
Up to PKR - 12,000,000 25%
Up to PKR - 30,000,000 27.5%
Up to PKR - 50,000,000 30%
Up to PKR - 75,000,000 32.5%
Over PKR - 75,000,000 35%

Payroll Cost

The employer cost is generally estimated at 16.7-22.7% + fees of the employee's salary. 
  • 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.

Overtime Pay & Maximum Hours

Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 3 hours of overtime. For additional hours, employees are paid:
  • 200% of the hourly rate, the first three hours.
  • 300% of the hourly rate, for public holidays
Standard working hours are eight hours per day, 40 hours per week. The standard workweek is from Monday to Friday. 

Maternity Leave

Pregnant employees are entitled 180 days of paid maternity leave for a first child, 120 days for a second child and 90 days for 3+ children. The employee will receive 100% of the salary during this period, and the employer will be responsible for this pay. 

Paternity Leave

Employees are entitled to 30 days of paid leave for the birth of a child. This is paid for by the employer at 100% of their regular salary.

Parental Leave

In Pakistan, no law covers parental leave. However, employees may be entitled to maternity leave and paternity leave.

Sick Leave

Sick leave in Pakistan is not defined as per local labor law, however, employees may use their paid vacation days to take sick leave. This leave will be paid in the same way normal vacation leave is paid. If an employee has no vacation leave accrued, they may take an unpaid day for 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

The minimum notice period is 30 days. 

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

Both full-time and part-time employees are entitled to 14 days of paid time off (PTO) a year. PTO accrues monthly at 1.66 days per month. Employees are eligible for annual leave after 12 months of work.

Public Holidays

Pakistan celebrates both 16 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
- 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

Onboarding takes one business day

Employment Contract Details

Contracts must be in English. They must be in writing and signed by both parties.

A contract must include: 
  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are not mandatory. The minimum probation period is three months, and it can be up to one year. 
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Download the complete guide to hiring in Pakistan

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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.

Group (8)

599 USD

Management fee

Group (9)

17-23%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Pakistan?

View our Employee Cost Calculator

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