Payroll Cycle
Minumum Wage
Region Minimum Wage (PKR) per month
Islamabad Capital Territory 20,000
Balochistan 20,000
Khyber Pakhtunkhwa 21,000
Punjab* Varies on job position. Check them here.
Sindh 19,000
Overtime Pay
Visa Immigration
Type of Visa Duration Note
Work Visa Up to 3 months Can be extended up to two years

Requirements:

BoI (Board of Investment) Work Visa Recommendation Letter

Business Visa Up to 5 years Requirements:

Proof of registration of company which is extending invitation (SECP/ Chamber of Commerce Certificate)

Any of the following:

Recommendation letter from CC&I of respective foreign country

Invitation letter from business organization duly recommended by concerned trade organization in Pakistan

Recommendation letter by the honorary investment counselor of BOI/Commercial Attaché

Talent Wiki - Pakistan

Your quick guide on talent and labor compliance norms in Pakistan
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Capital
Islamabad
Currency
Pakistani Rupee (PKR)
Languages
Urdu (Official), English (Official)
Payroll Frequency
Weekly, Bi-Monthly, Monthly
GDP per Capita
$1,465
Employer Tax
12%

Supplementary Guide for Employment and Expansion in Pakistan

Talent Overview

Pakistan holds the fifth largest population in the world. It has a fairly young population consisting of an average of 22.8 years old. Pakistan is a semi-industrial country that focuses its production on chemicals, leather goods, textiles, carpets / rugs, and sports commodities. Trade and services occupy the largest component of their economy while agriculture comes in second.

Major Economic Hubs:

Islamabad, Karachi, Lahore, Faisalabad

Skills in Demand:

Information and Communications Technology Professionals, Legal Professionals, Healthcare Professionals, Teaching Professionals

Local Universities

The top local universities in Pakistan are as follows:

University of the Punjab

RANKING

Pakistan : 1

World : 1591

Aga Khan University

RANKING

Pakistan : 2

World : 1757

Lahore University of Management Sciences

RANKING

Pakistan : 3

World : 2024

National University of Sciences and Technology

RANKING

Pakistan : 4

World : 2368

COMSATS Institute of Information Technology

RANKING

Pakistan : 5

World : 2752

Salary Data

No. Job Title Salary Average (PKR) Salary Average (USD)
1 Business Analyst 103,000 544.20
2 Business Development Manager 124,000 655.15
3 Project Manager 103,000 544.20
4 Data Scientist 126,000 665.72
5 UX Designer 57,100 301.69
6 Product Manager 109,000 575.90
7 Developer / Programmer 75,000 396.26

Talent Sourcing Tips

Top Local Job Boards

BrightSpyre, Bayrozgar, Mustakbil

Number of LinkedIn Users

8,374,000

Top Recruitment Agencies

Alahad Group, Ghaffar and Sons, BinFaisal

Employing in Pakistan

Hiring employees in Pakistan requires a strong grasp of the country’s employment laws, benefits, payroll, and taxes. Below are the basics you can draw on to successfully hire and onboard talents in Pakistan.

Employee Contract

Employee contracts in Pakistan can be either written or oral. The written documents must adhere to the National Labor Law of Pakistan which must not discriminate or exclude those who are members of trade unions. The language used must be Urdu or English or both.

Probation Period

The probationary period for employees at minimum is 3 months to a maximum of 6 months. 

Public and Provincial Holidays

Date Name Type
3 Jan January 1 Bank Holiday Bank Holiday
5 Feb Kashmir Day Public Holiday
23 Mar Pakistan Day Public Holiday
4 Apr Ramazan Bank Holiday Bank Holiday
1 May Labour Day Public Holiday
3 May Eid-ul-Fitr (Tentative Date) Public Holiday
4 May Eid-ul-Fitr Holiday (Tentative Date) Public Holiday
5 May Eid-ul-Fitr Holiday (Tentative Date) Public Holiday
1 Jul July 1 Bank Holiday Bank Holiday
10 Jul Eid al-Adha (Tentative Date) Public Holiday
11 Jul Eid al-Adha Holiday (Tentative Date) Public Holiday
12 Jul Eid al-Adha Holiday (Tentative Date) Public Holiday
7 Aug Ashura (Tentative Date) Public Holiday
8 Aug Ashura Holiday (Tentative Date) Public Holiday
14 Aug Independence Day Public Holiday
9 Oct Eid Milad un-Nabi (Tentative Date) Public Holiday
25 Dec Christmas Day Public Holiday
25 Dec Quaid-e-Azam Day Public Holiday

Employee Leaves

Type of leave Time period Mandatory
Annual leave/Earned Leave 14 days Yes
Sick Leave 10 days Yes
Maternity Leave 12 weeks Yes

Payroll

Payroll Cycle

Wages can be paid on a daily, weekly, bimonthly, or monthly basis.

Wage period cannot exceed one month.

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Minimum Wage

The minimum wage is different from other regions, click on the link below to get more details:

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Overtime pay

Employees are paid 200% of their regular pay on normal days.

Employees are paid 300% of their regular pay during holidays.

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Health Examination Clause

Bonus

13th Month Pay

The 13th-month pay is not mandatory in Pakistan, however, businesses with more than 20 employees are obliged to give bonuses with at least 90 days of consecutive service.

Employee Benefits

Insurance

There are two general social security schemes in Pakistan that provide coverage for their employees. The first one, The Provincial Employees Social Security (PSSS), gives benefit coverage for employees in cases of sickness, maternity, employment, injury or death. The second one, The  Employees Old Age Benefit (EOBI) provides four types of benefits to insured employees or their survivors: Old-Age Pension (or Reduced Pension), Survivors’ Pension, Invalidity Pension and Old-Age Grant (if an employee is not eligible for pension).

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Taxes

Employer Payroll Tax

Tax Rate Contribution
Social security contribution 6%(7% of monthly payroll up to 5000 rupees in Balochistan province)
Pension (Employees Age Old Benefit) 5% (of minimum wage)

Employee Payroll Tax

Tax Rate (Commercial Entity) Contribution
Health insurance 40 PKR flat-rate each month
Pension 1% (of minimum wage)

Employee Income Tax

Income tax is levied at a progressive rate on all annual income as follows:

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

Other Cases :

Annual Taxable Income (PKR) Tax Rate
0 to 400,000 0
400,000 to 600,000 5%
600,000 to 1,200,000 10%
1,200,000 to 2,400,000 15%
2,400,000 to 3,000,000 20%
3,000,000 to 4,000,000 25%
4,000,000 to 6,000,000 30%
6,000,000 and above 35%

VAT

The standard VAT rate in Pakistan is 17%.

Offboarding & Termination

Termination Process

A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.

Notice Period

The notice period for employees during probationary period is up to 2 weeks and for permanent employees, it is up to 1 month.

Severance Pay

Severance pay amounts to 30 days’ wages for each completed year of service.

Visa and Immigration

There are two types of visas in Pakistan you can get, click on the link below to get more details.

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