Global EOR Services in Pakistan
Find, Hire & Pay Employees in Pakistan
Expanding into Pakistan presents both opportunities and challenges. With a population of over 240 million and a rapidly growing workforce, Pakistan offers a large talent pool at competitive labor costs. However, navigating local employment laws, cultural norms, and administrative processes can be complex. Using a Global Employer of Record (EOR) allows companies to hire employees in Pakistan quickly and compliantly—without establishing a local entity.
Why Use Global EOR Services in Pakistan?
Effortless Market Entry: Hire local talent swiftly without the need for entity establishment.
Regulatory Compliance: Ensure adherence to labor, tax, and social security laws.
Cost Optimization: Reduce overhead expenses by avoiding entity setup and administrative burdens.
Operational Focus: Delegate HR and compliance tasks while concentrating on core business activities.
🇵🇰Pakistan: A Comprehensive Guide to Employment and Labor Practices
Key Facts:
Official Name: Islamic Republic of Pakistan
Capital: Islamabad
Population: ~240 million (2025 est.)
Official Language: Urdu; English is widely used in business and law
Currency: Pakistani Rupee (PKR)
Time Zone: Pakistan Standard Time (GMT+5)
Government: Federal parliamentary republic
Economic Overview: Agriculture, textiles, IT, construction, and services dominate the economy. Growing IT outsourcing and freelancing sector.
Ease of Doing Business: Medium; bureaucratic procedures and legal complexities exist, but incentives are offered for foreign investment in IT, manufacturing, and energy.
Corporate Tax: Standard corporate tax rate is 29% (varies by sector).
Personal Income Tax: Progressive rates from 2% to 35%.
Social Security Contributions: Employers contribute to EOBI (Employees’ Old Age Benefits Institution) and provincial social security programs for Pakistani employees.
Workforce: Young workforce with strong English proficiency in IT, customer service, and finance; large availability of both skilled and semi-skilled workers.
Key Industries Hiring Expats: IT outsourcing, telecom, energy, manufacturing, infrastructure, and healthcare.
Employment Laws and Policies in Pakistan
Pakistan’s labor laws are governed by both federal and provincial legislation. Key aspects include:
Employment Contracts: Written contracts are recommended; can be fixed-term or indefinite. Contracts must clearly define salary, benefits, and termination conditions.
Working Hours: Standard workweek is 48 hours (8 hours/day, 6 days/week). Overtime is paid at 2x the regular rate.
Minimum Wage: Set by provincial governments; ranges between PKR 32,000 – 37,000/month (as of 2025).
Probation Period: Up to 3 months; extendable by agreement.
Leave Entitlements:
Annual Leave: 14 consecutive days of paid leave after 12 months of service.
Sick Leave: 10 days on full pay + 20 days on half pay.
Public Holidays: 12–15 national holidays per year.
Maternity Leave: 12 weeks (6 before and 6 after birth) with full pay.
Paternity Leave: 10 days (federal government employees; varies by employer in private sector).
Social Security & Benefits: Mandatory employer contributions to EOBI (for pensions) and provincial social security (covering health, injury, disability).
Termination & Severance:
Minimum 1 month’s notice or pay in lieu required.
Employees with 12+ months of service are entitled to severance pay equal to 30 days’ wages for each completed year of service.
Labor Union Rights: Employees have the right to unionize and engage in collective bargaining.
Opening a Legal Entity in Pakistan
Foreign companies can establish a presence in Pakistan through the following structures:
Private Limited Company: Most common for foreign investors; requires registration with the Securities and Exchange Commission of Pakistan (SECP).
Branch Office or Liaison Office: Allowed for specific business activities with prior approval from the Board of Investment (BOI).
Partnership or Sole Proprietorship: Suitable for local entrepreneurs but less common for foreign companies.
Requirements:
- At least 2 shareholders and 1 director (for a private limited company).
- Local registered office.
- Minimum capital requirement is low (as little as PKR 100,000).
- Must register for taxation, social security, and labor compliance.
Challenges:
- Bureaucratic processes and regulatory delays.
- Foreign exchange regulations.
- Compliance with both federal and provincial labor laws.
ypically 2-4 weeks, depending on entity type.
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Popular Global EOR Providers Supporting Pakistan
(They often partner with in-country firms for local compliance.)
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