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.
Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Pakistan
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Pakistan
Easily onboard your remote talent in Pakistan through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
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.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Pakistan planning:
The national holidays mentioned below are valid for the year 2026.
| February 5 | Kashmir Day | |
| March 21-23 | Eid-ul-Fitr | Movable - As per the Islamic Lunar Calendar |
| March 23 | Pakistan Day | |
| April 6 | Easter Monday | Only for Christians - Movable - The first Sunday after the Paschal Full Moon (the first full moon that occurs after the vernal equinox) |
| May 1 | Labour Day | |
| May 27-28 | Eid-ul-Azha | Movable - As per the Islamic Lunar Calendar |
| June 25-26 | Ashura Muharram | Movable - As per the Islamic Lunar Calendar |
| August 14 | Independence Day | |
| August 25 | Eid-i-Milad | Movable As per the Islamic Lunar Calendar |
| November 9 | Iqbal Day | |
| December 25 | Quaid-i-Azam Day/Christmas | |
| December 26 | Day after Christmas | Only 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.
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. |
|
| Sickness, Maternity and work injury |
|
PKR 40 (2018) monthly |
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.
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.
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.
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. |
|
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.
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.
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.
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. |
|
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. |
|
| Sickness, Maternity and work injury |
|
PKR 40 (2018) monthly |
WorkMotion operates in Pakistan through its partner network, giving companies access to compliant employment in the country without needing to establish a local entity.
Here is how the process works, from contract generation to ongoing compliance.
WorkMotion generates an employment contract aligned with Pakistan’s labor law requirements, covering contract type, working hours, probation terms, notice periods, and statutory leave entitlements.
Pakistan’s Industrial and Commercial Employment (Standing Orders) Ordinance 1968 requires formal written appointment letters for employees in commercial and industrial establishments, and contracts must reflect the applicable federal and provincial rules for the employee’s location.
WorkMotion handles this drafting automatically, so your new hire receives a legally sound contract without your team needing to navigate the federal-provincial split in Pakistani labor law.
Before payroll can run, the employing entity must be registered with the relevant authorities in Pakistan.
This includes registration with the Employees’ Old-Age Benefits Institution (EOBI), mandatory for establishments with five or more employees, and with the applicable provincial Employees’ Social Security Institution (ESSI), which varies by province:
WorkMotion’s partner network manages these registrations on your behalf, along with National Tax Number (NTN) registration with the Federal Board of Revenue (FBR) for payroll tax withholding purposes.
WorkMotion configures payroll in Pakistani Rupees (PKR) and calculates the full gross-to-net breakdown for each employee. This includes:
Pakistan’s tax year runs from July 1 to June 30, and monthly withholding statements must be remitted to the FBR on schedule.
WorkMotion handles all of this, including the calculation differences that arise when employees are based in different provinces.
WorkMotion enrolls employees in the statutory benefits they are entitled to under Pakistani law:
Female employees are entitled to maternity leave of 90 to 180 days.
WorkMotion also manages the administration of any additional benefits included in the employment package, such as house rent allowance, transport, or medical allowances, which are common components of Pakistani compensation structures.
Each month, WorkMotion processes payroll in PKR, remits income tax to the FBR, and submits EOBI and provincial social security contributions to the relevant institutions.
Payroll records are maintained in a format available for labor department inspection. Employees receive payslips reflecting their gross salary, statutory deductions, and net pay.
WorkMotion’s payroll specialists monitor contribution rate changes, which can occur when provincial minimum wages are updated, and apply them without requiring action from your HR team.
Pakistan’s labor law framework operates across both federal and provincial levels, and the rules that apply to an employee depend on their province of residence, the size of the establishment, and the sector.
WorkMotion monitors regulatory changes, including minimum wage notifications issued by each province, updates to EOBI contribution bases, and FBR tax slab revisions, and applies them to active employment arrangements.
This means your team does not need to track Pakistan’s multi-jurisdictional compliance calendar to stay on the right side of the law.
For most companies hiring one to a handful of employees in Pakistan, the EOR model removes the need to build local legal infrastructure before making a single hire.
| EOR with WorkMotion | Setting Up a Pakistan Entity | |
|---|---|---|
| Setup cost | Per-employee monthly fee; no incorporation cost | Reported estimates of PKR 150,000–400,000+ (≈ USD 530–1,410) in government and professional fees, excluding ongoing compliance costs |
| Time to first hire | Days from signed contract | Weeks to months: SECP incorporation, NTN registration, EOBI and ESSI registration, and bank account opening each add time |
| Ongoing legal exposure | Managed by WorkMotion’s partner network | Carried by your entity, including SECP annual filings, FBR tax returns, provincial labor inspections, and EOBI audits |
| Ongoing admin burden | WorkMotion handles payroll, contributions, and compliance monitoring | Requires in-house or outsourced local payroll, tax, and HR administration |
| Exit flexibility | Wind down employment without dissolving a legal entity | Closing a Pakistani entity involves SECP deregistration, tax clearance, and labor settlement obligations |
EOR is the right fit when you need to hire in Pakistan quickly, compliantly, and without committing to the overhead of a permanent local structure.
If you are planning to hire a large team in Pakistan over the long term and want direct operational control, entity setup may be worth evaluating, but for most SMEs making their first hires in the country, the EOR model gets you there faster and with less legal exposure from day one.
Use WorkMotion’s Employment Cost Calculator to estimate the full cost of hiring in Pakistan, including gross salary, statutory employer contributions, and the WorkMotion service fee.
Pakistan’s labor law framework looks straightforward on the surface, but the federal-provincial split, the multiple statutory schemes, and the sector-specific rules create compliance gaps that foreign employers regularly fall into.
After the 18th Constitutional Amendment in 2010, labor legislation became a provincial subject in Pakistan. Each province (Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan) now operates its own labor regulations, minimum wage notifications, and social security institutions.
A company hiring employees in Karachi (Sindh) faces different social security contribution rates and thresholds than one hiring in Lahore (Punjab). Foreign employers who apply a single national compliance framework across all Pakistani employees often find themselves under-contributing in one province and over-contributing in another.
WorkMotion’s partner network tracks the applicable rules by province and applies them per employee.
Foreign employers frequently treat Pakistani social security as a single obligation. It is not. There are three concurrent statutory schemes:
Each scheme has its own registration, contribution calculation, and remittance process. Missing registration with any one of them creates retrospective liability.
WorkMotion manages all three as part of the standard employment setup.
Pakistani labor law prohibits using fixed-term contracts for work that is permanent in nature. Fixed-term arrangements, including renewals, are capped at nine months for roles that are ongoing.
Foreign employers who default to fixed-term contracts to retain flexibility often find those arrangements reclassified as permanent employment by labor courts, triggering full statutory entitlements and termination protections retroactively.
WorkMotion generates contracts that match the actual nature of the employment relationship from day one.
Under the Standing Orders Ordinance, dismissal of a confirmed employee requires written warnings, a show-cause notice, and a formal hearing before termination can proceed.
Employers who skip this process, even when the grounds for dismissal are legitimate, expose themselves to unfair dismissal claims in labor courts.
The notice period after probation is a minimum of 30 days, and severance (gratuity) of 30 days’ wages per year of service applies to permanent employees who have completed 12 months of service.
WorkMotion advises on the correct process at the point of offboarding, so terminations are handled in line with what Pakistani law actually requires.
Pakistani salary packages are typically structured as a combination of basic salary and allowances: house rent, transport, medical, and utilities. How these components are structured affects both income tax calculations and the basis for EOBI and social security contributions.
Foreign employers who pay a single gross salary figure without structuring allowances correctly can inadvertently increase their employees’ tax burden or miscalculate statutory contributions.
WorkMotion’s payroll specialists configure compensation structures that reflect local market practice and comply with FBR and EOBI calculation requirements.
Pakistani labor law requires employers to accommodate Friday prayers and Islamic public holidays. During Ramadan, working hours must be reduced to six hours per day.
Employers who schedule standard working hours through Ramadan without adjustment are in breach of the law, a detail that catches many foreign employers off guard when managing Pakistani teams remotely.
WorkMotion flags these requirements as part of the employment setup and ensures they are reflected in the employment terms.
Pakistan has a large and growing technology workforce, with Karachi, Lahore, and Islamabad producing significant numbers of software engineers, AI developers, and fintech specialists.
B2B SaaS companies and fintech firms based in Germany, the Netherlands, and the UK, facing long vacancy times for technical roles at home, use WorkMotion’s EOR service to hire Pakistani developers and engineers directly as employees, with compliant contracts and full statutory benefits.
This is not contractor arbitrage: these are mid-level to senior technical hires brought into the company as permanent employees, with the same employment protections as any other team member.
Companies with 50–300 employees that operate fully remote or hybrid models use WorkMotion to hire in Pakistan as part of a broader multi-country employment strategy.
A marketing agency or e-commerce company headquartered in Europe may have team members in five or six countries. Pakistan is one node in that network, not a standalone operation.
WorkMotion manages the Pakistan employment layer alongside the others, giving the People Ops team a single platform rather than a separate local provider relationship to manage in each country.
Companies building customer success, operations, or support functions in South Asia use WorkMotion’s EOR service to hire in Pakistan without committing to entity setup before they know whether the market works for them.
A German SaaS company hiring its first two operations specialists in Karachi can do so through WorkMotion in days: test the model, confirm the team structure, and decide later whether the scale justifies a local entity. The EOR model gives that optionality without the legal exposure of an informal arrangement.
Companies already hiring employees in India through WorkMotion can extend the same employment model to Pakistan without onboarding a new provider.
US companies building international teams, particularly in tech, fintech, and green tech, increasingly look to Pakistan for specialized talent.
WorkMotion’s EOR service in Pakistan is available to companies headquartered outside Europe, and the compliance infrastructure is the same regardless of where the client company is based.
A US startup hiring its first employee in Pakistan gets locally compliant contracts, EOBI and social security enrollment, and payroll in PKR, without needing to understand Pakistan’s multi-jurisdictional labor framework themselves.
Pakistan offers access to a large, English-speaking workforce with strong technical and commercial talent, but hiring there compliantly means navigating federal and provincial labor rules, three concurrent statutory schemes, and employment contract requirements that vary by location and role type.
WorkMotion handles all of it through its partner network in Pakistan, so your team can bring the right person on board without building local HR infrastructure from scratch.
From contract generation and EOBI registration to monthly payroll in PKR and ongoing compliance monitoring, WorkMotion manages the employment relationship end to end.
If you have a role to fill in Pakistan and need to move quickly, the EOR model gets you there in days, not months.
Pakistan’s labor legislation is split between federal and provincial jurisdictions following the 18th Constitutional Amendment in 2010, which means the rules governing your employees depend on where they are based, not just on national law. An employee in Lahore falls under Punjab’s minimum wage notifications and PESSI social security rates, while an employee in Karachi is subject to Sindh’s separate SESSI framework and contribution thresholds. A compliant EOR in Pakistan must track and apply these province-specific rules per employee, not apply a single national framework across the board.
As the commercial employer, you are responsible for funding the employer-side contributions that the EOR remits on your behalf. These include a 5% EOBI contribution (calculated on the applicable minimum wage, not gross salary), provincial social security contributions at rates that vary by province, and, for eligible industrial-sector employers, the Workers’ Welfare Fund. Each scheme has its own registration and remittance process, and missing any one of them creates retrospective liability. WorkMotion’s partner network manages all three as part of the standard Pakistan EOR setup.
Pakistani labor law prohibits using fixed-term contracts for roles that are permanent in nature, and fixed-term arrangements, including renewals, are capped at nine months for ongoing work. If a fixed-term contract is used for what is effectively a permanent role, Pakistani labor courts can reclassify the arrangement retroactively, triggering full statutory entitlements and termination protections from the original start date. A pakistan employer of record structures contracts to match the actual nature of the employment relationship from day one, avoiding this exposure.
Dismissal of a confirmed employee under Pakistan’s Industrial and Commercial Employment (Standing Orders) Ordinance 1968 requires a written show-cause notice, an opportunity for the employee to respond, and a formal hearing before termination can proceed, and skipping any step exposes the employer to unfair dismissal claims regardless of whether the grounds are legitimate. The minimum notice period after probation is 30 days, and employees who have completed 12 months of continuous service are entitled to gratuity of 30 days’ wages per year of service. WorkMotion advises on the correct offboarding process through its partner network in Pakistan to ensure terminations follow what the law actually requires.
Through its partner network, WorkMotion can typically complete onboarding in Pakistan within days of a signed contract, covering employment contract generation aligned with Pakistani labor law, EOBI registration, provincial social security enrollment, and payroll configuration in Pakistani Rupees (PKR). The timeline depends on the completeness of employee information provided and any province-specific registration steps, but the process does not require your company to establish a local entity, open a Pakistani bank account, or navigate SECP incorporation. If you have a role to fill and need to move quickly, book a demo to see how WorkMotion’s EOR in Pakistan gets your hire started without the entity setup overhead.
Pakistani labor law requires employers to reduce working hours to six hours per day during Ramadan. This is a legal obligation, not a discretionary accommodation, and applies to Muslim employees. Foreign employers managing Pakistani teams remotely often schedule standard hours through Ramadan without adjustment, which puts them in breach of the law. A pakistan eor provider with genuine in-country compliance expertise flags these requirements during employment setup and ensures they are reflected in the employment terms before the first working day.
Discover how WorkMotion helps you hire anywhere, stay compliant, and manage global teams with ease.
Trusted by
![idWjC-9cC6_logos 1 [Vectorized]](https://workmotion.com/wp-content/uploads/2026/02/idWjC-9cC6_logos-1-Vectorized.svg)
