Expand your global workforce in Pakistan
Your guide to the employment landscape, working customs and local labor laws in Pakistan
Capital
Islamabad
Currency
Pakistani Rupee (PKR)
Languages
Urdu (Official), English (Official)
GDP per Capita
$1,399.10
Employer Tax
12%
Payroll Frequency
Weekly, Bi-Monthly, Monthly
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
Top local universities in Pakistan
Aga Khan University
Ranking
Local: 1
World: 1771
University of the Punjab
Ranking
Local: 2
World: 1844
Lahore University of Management Sciences
Ranking
Local: 3
World: 2300
National University of Sciences and Technology
Ranking
Local: 4
World: 2568
COMSATS Institute of Information Technology
Ranking
Local: 5
World: 3196
Top Local Job Portals:
BrightSpyre, Bayrozgar, Mustakbil
Number of LinkedIn Users (2022):
10,620,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in Pakistan
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.
Public and Provincial Holidays
| Date | Name | Type |
| February 5 | Kashmir Day | National Holiday |
| March 23 | Pakistan Day | National Holiday |
| March 30 | Eid-ul-Fitr | National Holiday |
| March 31 | Eid-ul-Fitr Holiday | National Holiday |
| April 1 | Eid-ul-Fitr Holiday | National Holiday |
| May 1 | Labour Day | National Holiday |
| June 7 | Eid al-Adha | National Holiday |
| June 8 | Eid al-Adha Holiday | National Holiday |
| June 9 | Eid al-Adha Holiday | National Holiday |
| July 5 | Ashura | National Holiday |
| July 6 | Ashura Holiday | National Holiday |
| August 14 | Independence Day | National Holiday |
| September 5 | Eid Milad un-Nabi | National Holiday |
| November 9 | Iqbal Day | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 25 | Quaid-e-Azam Day | National Holiday |
Employee Leaves
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 14 days | Yes |
| Sick Leave | 8 days | Yes |
| Maternity Leave | 12 weeks | Yes |
Leave Compliance
Payroll in Pakistan
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 ranges from PKR 1,231 per day to PKR 1,807 per day depending on the states listed below:
Read more
Overtime pay
Employees are paid 200% of their regular pay on normal days.
Employees are paid 300% of their regular pay during holidays.
How taxes work
Employer Payroll Tax
| Scheme | Contribution |
| Employees Old-Age Benefits Insurance | 6% (5% in Sindh) |
| Provincial Social Security Schemes | 6% |
Employee Payroll Tax
| Scheme | Contribution |
| Employees Old-Age Benefits Insurance | 2% |
| Provincial Social Security Schemes |
Employee Income Tax
Income tax is levied at a progressive rate on all annual income as follows:
| Annual Taxable Income
(PKR, Pakistani Rupee) |
Income Tax Rate |
| 0 to 600,0000 | 0% |
| 600,000 to 1,200,000 | 5% |
| 1,200,000 to 2,200,000 | 15% |
| 2,200,000 to 3,200,000 | 25% |
| 3,200,000 to 4,100,000 | 30% |
| Above 4,100,000 | 35% |
VAT
The standard VAT rate (locally termed as ‘sales tax’) in Pakistan is 18%.
Bonus
13th Month Pay
The 13th-month pay is customary in Pakistan.
Employee Benefits
- Social security schemes
- Worker’s compensation
- Maternity leaves and benefits
Employee offboarding
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.
Read more
Your employment toolkit for Pakistan
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Overtime Pay
Minimum Wage
- Punjab: Unskilled workers in industrial and commercial sectors must be paid a minimum wage of PKR 1,230.77 per day or PKR 32,000 per month.
- Sindh: Unskilled workers receive at least PKR 1,230.77 per day or PKR 32,000 per month, while skilled workers are entitled to PKR 1,280 per day or PKR 33,280 per month.
- Khyber Pakhtunkhwa: The minimum wage for unskilled employees is set at PKR 1,230.77 per day or PKR 32,000 per month.
- Balochistan: Unskilled workers must be paid a minimum of PKR 1,231 per day or PKR 32,000 per month.
- Islamabad Capital Territory (ICT): Unskilled employees earn at least PKR 1,231 per day or PKR 32,000 per month, while skilled workers receive PKR 1,807 per day.
Overtime Pay
Visa and 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 |