Talent Wiki - Pakistan

Your quick guide on talent and labor compliance norms in Pakistan

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Capital

Islamabad

Currency

Pakistani Rupee (PKR)

Languages

Urdu (Official), English (Official)

Payroll Frequency

Weekly, Bi-Monthly, Monthly

GDP per Capita

$1,465

Employer Tax

12%

Supplementary Guide for Employment and Expansion in Pakistan

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:

University of the Punjab

RANKING

Pakistan : 1

World : 1591

Aga Khan University

RANKING

Pakistan : 2

World : 1757

Lahore University of Management Sciences

RANKING

Pakistan : 3

World : 2024

National University of Sciences and Technology

RANKING

Pakistan : 4

World : 2368

COMSATS Institute of Information Technology

RANKING

Pakistan : 5

World : 2752

Salary Data

No.	Job Title	Salary Average (PKR)	Salary Average (USD)
1	Business Analyst	103,000	544.20
2	Business Development Manager	124,000	655.15
3	Project Manager	103,000	544.20
4	Data Scientist	126,000	665.72
5	UX Designer	57,100	301.69
6	Product Manager	109,000	575.90
7	Developer / Programmer	75,000	396.26

Talent Sourcing Tips

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
3 Jan	January 1 Bank Holiday	Bank Holiday
5 Feb	Kashmir Day	Public Holiday
23 Mar	Pakistan Day	Public Holiday
4 Apr	Ramazan Bank Holiday	Bank Holiday
1 May	Labour Day	Public Holiday
3 May	Eid-ul-Fitr (Tentative Date)	Public Holiday
4 May	Eid-ul-Fitr Holiday (Tentative Date)	Public Holiday
5 May	Eid-ul-Fitr Holiday (Tentative Date)	Public Holiday
1 Jul	July 1 Bank Holiday	Bank Holiday
10 Jul	Eid al-Adha (Tentative Date)	Public Holiday
11 Jul	Eid al-Adha Holiday (Tentative Date)	Public Holiday
12 Jul	Eid al-Adha Holiday (Tentative Date)	Public Holiday
7 Aug	Ashura (Tentative Date)	Public Holiday
8 Aug	Ashura Holiday (Tentative Date)	Public Holiday
14 Aug	Independence Day	Public Holiday
9 Oct	Eid Milad un-Nabi (Tentative Date)	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

Payroll Cycle

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

Wage period cannot exceed one month.

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Minimum Wage

The minimum wage is different from other regions, click on the link below to get more details:

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Overtime pay

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

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

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Health Examination Clause

Bonus

13th Month Pay

The 13th-month pay is not mandatory in Pakistan, however, businesses with more than 20 employees are obliged to give bonuses with at least 90 days of consecutive service.

Employee Benefits

Insurance

There are two general social security schemes in Pakistan that provide coverage for their employees. The first one, The Provincial Employees Social Security (PSSS), gives benefit coverage for employees in cases of sickness, maternity, employment, injury or death. The second one, The Employees Old Age Benefit (EOBI) provides four types of benefits to insured employees or their survivors: Old-Age Pension (or Reduced Pension), Survivors’ Pension, Invalidity Pension and Old-Age Grant (if an employee is not eligible for pension).

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Taxes

Employer Payroll Tax

Tax Rate	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 Rate (Commercial Entity)	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		5%
1,200,000 to 1,800,000		10%
1,800,000 to 2,500,000		15%
2,500,000 to 3,500,000		17.5%
3,500,000 to 5,000,000		20%
5,000,000 to 8,000,000		22.5%
8,000,000 to 12,000,000		25%
12,000,000 to 30,000,000		27.5%
30,000,000 to 50,000,000		30%
50,000,000 to 75,000,000		32.5%
75,000,000 and above		35%

Other Cases :

Annual Taxable Income (PKR)		Tax Rate
0 to 400,000		0
400,000 to 600,000		5%
600,000 to 1,200,000		10%
1,200,000 to 2,400,000		15%
2,400,000 to 3,000,000		20%
3,000,000 to 4,000,000		25%
4,000,000 to 6,000,000		30%
6,000,000 and above		35%

VAT

The standard VAT rate in Pakistan is 17%.

Offboarding & Termination

Termination Process

A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.

Notice Period

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

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, click on the link below to get more details.

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Region	Minimum Wage (PKR) per month
Islamabad Capital Territory	20,000
Balochistan	20,000
Khyber Pakhtunkhwa	21,000
Punjab*	Varies on job position. Check them here.
Sindh	19,000

Talent Wiki - Pakistan

Supplementary Guide for Employment and Expansion in Pakistan