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Pakistan Employment Guide

Your quick guide on talent and labor compliance norms in Pakistan




Pakistani Rupee (PKR)


Urdu (Official), English (Official)

Payroll Frequency

Weekly, Bi-Monthly, Monthly

GDP per Capita


Employer Tax


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

Pakistan Map

Local Universities

The top local universities in Pakistan are as follows:

Pakistan Uni1

Aga Khan University


Local: 1

World: 1771

Pakistan Uni2

University of the Punjab


Local: 2

World: 1844

Pakistan Uni3

Lahore University of Management Sciences


Local: 3

World: 2300

Pakistan Uni4

National University of Sciences and Technology


Local: 4

World: 2568

Pakistan Uni5

COMSATS Institute of Information Technology


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
Pakistan Talentresource

Talent Sourcing Tips

Top Local Job Portals:

BrightSpyre, Bayrozgar, Mustakbil

Number of LinkedIn Users (2022):


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
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

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 1

Payroll Cycle

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

Wage period cannot exceed one month.

Payroll 2

Minimum Wage

The minimum wage in Pakistan has been raised from 20,000 PKR to 25,000 PKR for unskilled workers.

Payroll 3

Overtime Pay

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

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


13th Month Pay

The 13th-month pay is customary in Pakistan.

Employee Benefits

  • Social security schemes
  • Worker’s compensation
  • Maternity leaves and benefits


Employer Payroll Tax

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)

Employee Payroll Tax

Tax Type 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 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%

Other cases:

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.

Pakistan Visa
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Streamline payroll and compliance for your international workforce


Minimum Wage

Overtime Pay

Visa & Immigration

Type of Visa Duration Note
Work Visa Up to 3 months Can be extended up to two years


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