Hire in Pakistan

Pakistan, located in South Asia, is bordered by India to the east, China to the northeast, Afghanistan to the north and west, Iran to the southwest, and the Arabian Sea and the Gulf of Oman to the south. The northern and western highlands of Pakistan contain the towering Karakoram and Pamir mountain ranges, which include some of the World’s highest peaks: K2 (8,611 meters) and Nanga Parbat (8,126 meters). The 1,000 miles long (1,609 kilometers) Indus River and its tributaries flow through the country from the Kashmir region to the Arabian Sea. Pakistan is divided into 113 districts. Agriculture, now no longer the largest sector, contributes roughly one-fifth of GDP, while manufacturing provides about one-sixth. Textiles account for most of Pakistan’s export earnings. Trade and services, which combined constitute the largest component of the economy, have grown considerably.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Pakistan.

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A quick overview of Pakistan

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Cost of living index

$ (139 of 139 countries)

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Currency

Pakistani Rupee (PKR, Rs)

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Payroll frequency

Fortnightly/Monthly

Basic facts

Pakistan, located in South Asia, is bordered by India to the east, China to the northeast, Afghanistan to the north and west, Iran to the southwest, and the Arabian Sea and the Gulf of Oman to the south. The northern and western highlands of Pakistan contain the towering Karakoram and Pamir mountain ranges, which include some of the World’s highest peaks: K2 (8,611 meters) and Nanga Parbat (8,126 meters). The 1,000 miles long (1,609 kilometers) Indus River and its tributaries flow through the country from the Kashmir region to the Arabian Sea. Pakistan is divided into 113 districts. Agriculture, now no longer the largest sector, contributes roughly one-fifth of GDP, while manufacturing provides about one-sixth. Textiles account for most of Pakistan’s export earnings. Trade and services, which combined constitute the largest component of the economy, have grown considerably.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Pakistan.

Capital

Islamabad

Official language/s

Urdu and English

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Population

240.4 million (2023 est.)

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VAT - standard rate

17%

The national holidays mentioned below are valid for the year 2025.

February 5Kashmir Day
March 23Pakistan Day
March 31-April 2Eid-ul-FitrMovable - As per the Islamic Lunar Calendar
April 21Easter MondayOnly for Christians - Movable - The first Sunday after the Paschal Full Moon (the first full moon that occurs after the vernal equinox)
May 1Labor Day
June 7-8Eid-ul-AzhaMovable - As per the Islamic Lunar Calendar
July 5-6Ashura MuharramMovable - As per the Islamic Lunar Calendar
August 14Independence Day
September 5Eid-i-MiladMovable As per the Islamic Lunar Calendar
November 9Iqbal Day
December 25Quaid-i-Azam Day/Christmas
December 26Day after ChristmasOnly for Christians

The approximate time for sharing the contract with an employee in Pakistan is 4 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Apart from annual and sick leave, a casual leave of 10 days is also provided to employees.
  • Social security contributions are quite nominal as indicated by PKR 40 paid by the employees towards health insurance every month.
  • A mandatory bonus is paid by every employer who makes profit in a given year, within three months of the closing of the bonus year, to every employee who has been in employment in the bonus year for a continuous period of not less than 90 days.

Pakistan’s constitution was amended in 2010 to devolve social and labor legislation to the provinces. Some provinces have passed legislation but maintain key features of existing federal programs, and federal legislation is still in effect for provinces that have not yet passed legislation.

Benefits Employer contribution Employee Contribution
Old Age, Disability, and Survivors 5% of the monthly minimum wage.
  • 1% of the monthly minimum wage
  • None for residents of Sindh province.
Sickness, Maternity and work injury
  • 6% of monthly payroll
  • 7% of monthly payroll up to PKR 5,000 in Balochistan province
PKR 40 (2018) monthly

Working Hours

The maximum number of working hours per week is 48 hours. The daily limit of working hours is nine hours including breaks. No work period can exceed six hours before an interval for the rest of at least one hour is granted, or it should not exceed five hours before an interval for rest of at least half an hour, or for more than eight hours before at least two such intervals have been granted.

 

Overtime

If a worker works more than nine hours in any day or more than 48 hours in any week, they are entitled in respect of the overtime worked to be paid at the rate of twice their ordinary rate of pay.

 

Probation Period

A probationer is defined as a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months of service therein. No probationer is entitled to any notice if their services are terminated by the employer, nor is any such workman required to give any notice or pay wages in lieu thereof to the employer if they leave employment of their own accord.

Termination Notice Period

 

The termination notice periods are as follows:

Termination Cause Notice Period
Probationary period None
Any reason other than misconduct by an employer or employee 1 month

(may be paid in lieu)

Dismissal due to alleged misconduct 1 month from the date of such misconduct to give an opportunity to explain the alleged circumstances.
The failure of plant, a temporary curtailment of production, or any stoppage of work.
  • 50% of daily wages during the first 14 days of lay-off
  • Beyond 14 days, services may be terminated after giving due notice or pay in lieu thereof.
Working Hours

The maximum number of working hours per week is 48 hours. The daily limit of working hours is nine hours including breaks. No work period can exceed six hours before an interval for the rest of at least one hour is granted, or it should not exceed five hours before an interval for rest of at least half an hour, or for more than eight hours before at least two such intervals have been granted.

 

Overtime

If a worker works more than nine hours in any day or more than 48 hours in any week, they are entitled in respect of the overtime worked to be paid at the rate of twice their ordinary rate of pay.

 

Probation Period

A probationer is defined as a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months of service therein. No probationer is entitled to any notice if their services are terminated by the employer, nor is any such workman required to give any notice or pay wages in lieu thereof to the employer if they leave employment of their own accord.

Termination Notice Period

 

The termination notice periods are as follows:

Termination Cause Notice Period
Probationary period None
Any reason other than misconduct by an employer or employee 1 month

(may be paid in lieu)

Dismissal due to alleged misconduct 1 month from the date of such misconduct to give an opportunity to explain the alleged circumstances.
The failure of plant, a temporary curtailment of production, or any stoppage of work.
  • 50% of daily wages during the first 14 days of lay-off
  • Beyond 14 days, services may be terminated after giving due notice or pay in lieu thereof.

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Pakistan’s constitution was amended in 2010 to devolve social and labor legislation to the provinces. Some provinces have passed legislation but maintain key features of existing federal programs, and federal legislation is still in effect for provinces that have not yet passed legislation.

Benefits Employer contribution Employee Contribution
Old Age, Disability, and Survivors 5% of the monthly minimum wage.
  • 1% of the monthly minimum wage
  • None for residents of Sindh province.
Sickness, Maternity and work injury
  • 6% of monthly payroll
  • 7% of monthly payroll up to PKR 5,000 in Balochistan province
PKR 40 (2018) monthly