Your quick guide on talent and labor compliance norms in Pakistan
Capital
Islamabad
Currency
Pakistani Rupee (PKR)
Languages
Urdu (Official), English (Official)
Payroll Frequency
Weekly, Bi-Monthly, Monthly
GDP per Capita
$1,399.10
Employer Tax
12%
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:
Local: 1
World: 1771
Local: 2
World: 1844
Local: 3
World: 2300
Local: 4
World: 2568
Local: 5
World: 3196
Salary Data
Below are average monthly salaries in Pakistan:
| Job Title | Average Monthly Salary (PKR) | Average Monthly Salary (USD) |
| Business Analyst | 103,000 | 374 |
| Business Development Manager | 124,000 | 450 |
| Project Manager | 91,300 | 331 |
| Data Scientist | 126,000 | 457 |
| UX Designer | 57,100 | 207 |
| Product Manager | 109,000 | 395 |
| Developer / Programmer | 75,000 | 272 |
Talent Sourcing Tips
BrightSpyre, Bayrozgar, Mustakbil
10,620,000
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 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.
The probationary period for employees at minimum is 3 months to a maximum of 6 months.
| Date | Name | Type |
| 5 Feb | Kashmir Day | Public Holiday |
| 23 Mar | Pakistan Day | Public Holiday |
| 10 Apr | Eid-ul-Fitr (Tentative Date) | Public Holiday |
| 11 Apr | Eid-ul-Fitr Holiday (Tentative Date) | Public Holiday |
| 12 Apr | Eid-ul-Fitr Holiday (Tentative Date) | Public Holiday |
| 13 Apr | Eid-ul-Fitr Holiday (Tentative Date) | Public Holiday |
| 1 May | Labour Day | Public Holiday |
| 17 Jun | Eid al-Adha (Tentative Date) | Public Holiday |
| 18 Jun | Eid al-Adha Holiday (Tentative Date) | Public Holiday |
| 19 Jun | Eid al-Adha Holiday (Tentative Date) | Public Holiday |
| 1 Jul | July 1 Bank Holiday | Bank Holiday |
| 16 Jul | Ashura (Tentative Date) | Public Holiday |
| 17 Jul | Ashura Holiday (Tentative Date) | Public Holiday |
| 14 Aug | Independence Day | Public Holiday |
| 16 Sep | Eid Milad un-Nabi (Tentative Date) | Public Holiday |
| 9 Nov | Iqbal Day | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 25 Dec | Quaid-e-Azam Day | Public Holiday |
| 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.
Minimum Wage
The minimum wage in Pakistan has been raised from 20,000 PKR to 25,000 PKR for unskilled workers.
Overtime Pay
Employees are paid 200% of their regular pay on normal days.
Employees are paid 300% of their regular pay during holidays.
Bonus
The 13th-month pay is customary in Pakistan.
Taxes
| Tax Type | 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) |
| Tax Type | Contribution |
| Health insurance | 40 PKR flat-rate each month |
| Pension | 1% (of minimum wage) |
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 | 2.5% | |
| 1,200,000 to 2,400,000 | 12.5% | |
| 2,400,000 to 3,600,000 | 20% | |
| 3,600,000 to 6,000,000 | 17.5% | |
| 6,000,000 to 12,000,000 | 25% | |
| 12,000,000 | 32.5% | |
| 8,000,000 to 12,000,000 | 25% | |
| 12,000,000 and up | 35% | |
| Annual Taxable Income (PKR) | Tax Rate | |
| 0 to 600,000 | 0 | |
| 600,000 to 800,000 | 5% | |
| 800,000 to 1,200,000 | 12.5% | |
| 1,200,000 to 2,400,000 | 17.5% | |
| 2,400,000 to 3,000,000 | 22.5% | |
| 3,000,000 to 4,000,000 | 27.5% | |
| 4,000,000 to 6,000,000 | 32.5% | |
| 6,000,000 and above | 35% | |
The standard VAT rate in Pakistan is 17%.
Offboarding & Termination
A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.
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 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 listed down below.
| 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 |
