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Country hiring guide

Hiring in Pakistan ๐Ÿ‡ต๐Ÿ‡ฐ

Large, young, English-capable workforce strong in IT, software services and BPO. Employer on-costs run ~12%* on top of gross salary. Here is what to know before your first Pakistan hire.

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Capital cityIslamabad
CurrencyPakistani rupee (PKR)
LanguagesUrdu (national), English (official); regional languages
Population~250 million
Payroll frequencyMonthly; no statutory 13th salary (bonuses customary)
VAT standard rate18% (sales tax/GST)
Employer burden*~12%* of gross
TGTC flat EOR fee$499/mo ยท Tier B
Overview

Employing in Pakistan

Employment in Pakistan runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • PKR 40,000/month (most provinces, 2025)
  • Federal floor PKR 37,000

Payroll cycle & extra pay

  • Monthly payroll
  • No statutory 13th salary

Public holidays

  • ~16 national holidays
  • Regional holidays add more

Onboarding & probation

  • Probation 3-6 months (private)
  • Confirmation letter customary
Employer costs

What you pay on top of salary

Employer on-costs in Pakistan run ~12%* of gross salary. Employers fund EOBI pension, provincial social security and end-of-service gratuity.

Employer contribution*Rate
EOBI pension (employer)5% of minimum wage
Provincial social security~6% of wages*
Gratuity or provident fund8.33% (30 days/year)
Group life insuranceNominal fixed amount

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Pakistan

Annual leave

  • 14 days after 12 months service

Maternity & parental leave

  • 180 days 1st child, then 120/90*
  • Paternity 30 days (federal)*

Sick leave

  • 10 days full pay
  • +16 days at 50% with certificate

Other leave

  • Casual leave ~10 days
  • Provincial variation applies
Employment termination

Ending employment in Pakistan

Notice

  • 1 month by either party
  • Or pay in lieu

Severance

  • Gratuity 30 days wages/year served
  • Except dismissal for misconduct

Probation

  • 3-6 months typical
  • Easier exit during probation

Contractor risk

  • Misclassification triggers back-pay, EOBI dues, penalties

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Pakistan without setting up an entity

TGTC employs your hire in Pakistan on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Pakistan quote