Hire in Pakistan
Islamic Republic of Pakistan, 230 million population, $1,580 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Pakistan.
Capital
Islamabad
Currency
Pakistani Rupee (PKR)
Languages
Urdu, English, Punjabi, Sindhi, Pashto
Time zones
UTC+5 (PKT)
Hiring overview
- Typical time to hire
- 1-2 weeks for contractor, 2-4 weeks for full-time
- Entity requirement
- Pakistani company (Pvt Ltd). Registration at SECP.
- EOR available
- Yes, from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes, from $39/worker/month
Employment law
- Standard workweek
- 48 hours (6 days)
- Maximum weekly hours
- 48 hours
- Minimum annual leave
- 14 days after 12 months (varies by province)
- Public holidays
- 11 per year
- Maternity leave
- 12 weeks (6 before + 6 after), fully paid (for establishments with 6+ workers)
- Paternity leave
- No federal provision; some provinces and employers offer 7-30 days
- Notice period
- 1 month (or as per contract)
- Severance
- Gratuity: 30 days wages per year of service (after 1 year).
- Probation
- 3-6 months typical
- Overtime rules
- 2x normal rate. Maximum overtime varies by provincial law.
Tax overview
- Income tax range
- 0% to 35% (salaried); higher effective rates for non-salaried
- Corporate tax
- 29% (39% for banking)
- Social contributions
- EOBI: 1% employee + 5% employer. Social security: 6% employer.
- VAT / GST
- 18% (sales tax)
- Tax year
- July 1 to June 30
- Treaty network
- Over 65 tax treaties
Compliance landscape
- Worker classification
- Provincial labour laws govern (devolved after 18th Amendment 2010). Federal laws for Islamabad Capital Territory.
- Data protection
- Personal Data Protection Bill (pending; no comprehensive law yet). Prevention of Electronic Crimes Act 2016 provides some protections.
- Right to work
- Work visa and security clearance required for foreigners.
- Non-compete
- Generally considered against public policy under the Contract Act 1872 (Section 27). Limited enforceability.
- Collective bargaining
- Protected under provincial Industrial Relations Acts. Union activity varies by sector.
Payment rails
RAAST (instant payment system by SBP, launched 2021) handles real-time transfers. JazzCash and EasyPaisa are widely used mobile wallets. Wise supports PKR.
Key considerations for hiring
- Pakistan is the world's 5th most populous country with a very young population (median age 22)
- Large freelancing workforce, Pakistan ranks 4th globally on freelancer platforms
- Lahore, Karachi, and Islamabad have growing tech ecosystems
- RAAST instant payment system is modernising Pakistan's financial infrastructure
Business and cultural context: Pakistan
Business culture
Hierarchical and relationship-oriented. Personal connections matter significantly. Hospitality (chai and conversation) precedes business. Regional cultures vary significantly.
Key industries
Talent pool strengths
Historical context
Pakistan has the world's 4th-largest freelancer population, driven by a young, English-speaking workforce and high mobile penetration. The IT export sector has grown from $0.8B in 2013 to over $2.6B, with the government targeting $15B by 2030 under the Digital Pakistan initiative.
Ready to hire in Pakistan?
Use our EOR service from $399/month and we handle employment law, payroll, tax and compliance in Pakistan for you.