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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
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.
Employers with more than 20 employees in Pakistan are mandated to provide a written employment contract outlining essential terms such as:
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.
In Pakistan, the standard working hours are 45 hours per week, allowing employees to work up to 9 hours per day.
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.
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.
Employers are not legally required to make 13th-month salary payments in Pakistan.
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.
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.
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:
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.
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.
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:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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