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From
$249/month
$49/month
2% of gross salary / month
Pakistan is one of the largest countries in the world with a population of 236.17 million people. Its $370.9 billion GDP is expected to increase by 2% in 2024.
With a wealth of software development and IT expertise, and reasonable labor costs, Pakistan is a popular location for international hiring. Learn how Horizons’ Pakistan Employer of Record (EOR) solution can enable you to hire employees in Pakistan quickly, compliantly, and at a minimal cost.
Hire in Pakistan, and pay employees through our platform or app.
Our Pakistan EOR solution is the most affordable on the market.
Fast Pakistan onboarding, hire in as little as 12 hours.
We draft compliant Pakistan labor contracts.
We manage all Pakistan “Five Insurances” mandatory benefits.
It doesn’t stop with Pakistan — we hire employees globally.
An Employer of Record (EOR) in Pakistan is a business that is able to recruit and hire local employees on behalf of other companies. As the EOR is the firm doing the actual hiring, their client companies don’t need to own entities in Pakistan to work with employees there. The EOR hires employees on behalf of their clients and then manages their human resources (HR) functions on a long-term basis. These functions typically include payroll, benefits, and employment compliance.
Another term used in Pakistan for an Employer of Record is a Professional Employer Organization (PEO).
The benefits of working with a Pakistan EOR to hire employees in-country include:
Horizons stands out as a Pakistan EOR through:
When you engage a Pakistan EOR, it will:
To summarize, when your company engages a Pakistan EOR, your business is able to focus on strategic objectives and operational needs within the Pakistan marketplace, with the EOR taking care of HR functions and legal compliance.
When you work with a Pakistan Employer of Record, that service provider is the sole legal employer of your employees. As such, it is responsible for maintaining compliance with all the relevant labor laws in Pakistan. At the federal level, this includes the Minimum Wages Ordinance of 1961, the Old-Age Benefits Act of 1976, and the Industrial Relations Act of 2012, among others. However, provinces have different laws that may also need to be considered. It’s useful for companies to have some familiarity with these laws to know what to expect they’ll need to provide for their workers.
Contracts in Pakistan can be permanent (open-ended) or fixed-period. Every legal contract needs to detail the employee’s role and responsibilities, working hours, probationary period, paid leave, and other benefits. It also must include termination conditions and give the details of salary and the salary payment schedule.
No probationary period
At completion of the project
Not required, but may be offered
3-6 months
None, unless specified in contract
Not required unless specified in the contract
3-6 months
30-90 days
1 month salary per year of service
Workers in Pakistan normally work eight or nine hours a day to a maximum of 48 hours per week. However, these hours include a paid lunch break and breaks for prayer during the day for a total of one hour. During the holy month of Ramadan, however, workers are normally fasting during daylight hours, and employers must reduce their work to a maximum of 6 hours per day.
Employees cannot work more than 12 hours/day or three extra overtime hours a day. These overtime hours are mandatory and must be worked according to the needs of the employer. However, they are compensated at double the rate of regular pay and triple on holidays.
150% of the standard hourly rate (also known as ‘time and a half’)
200% of the standard hourly rate, or a day off (also known as ‘double time, or a day in lieu’)
300% of the standard hourly rate (also known as ‘triple time’)
Pakistan has a healthy mix of national and religious holidays that are decided on annually. This holiday schedule normally totals around 16 days, and workers must be paid for these holidays. If they fall on weekends or other days off, workers are compensated with time off.
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 5 Feb 2025 | Kashmir Solidarity Day |
| 23 Mar 2025 | Pakistan Day |
| 30 Mar – 1 Apr 2025 | Eid-ul-Fitr Holiday (Tentative Date) |
| 13 Apr 2025 | Baisakhi |
| 1 May 2025 | Labour Day |
| 28 May 2025 | Youm-e-Takbeer |
| 7 Jun to 9 Jun 2025 | Eid al-Adha Holiday (Tentative Date) |
| 5 Jul – 6 Jul 2025 | Ashura (Tentative Date) |
| 14 Aug 2025 | Independence Day (Youm-e-Azadi) |
| 5 Sep 2025 | Eid Milad un-Nabi (Tentative Date) |
| 9 Nov 2025 | Allama Iqbal Day |
| 25 Dec 2025 | Quaid-e-Azam Day |
Pakistani workers are entitled to a minimum of 14 days off per year as long as they have worked for one year for their employer. These days can, however, include public holidays, so if a worker takes paid leave over a national holiday, that day is not counted twice. Workers are allowed to accumulate as many as 14 days of paid leave, so employers may grant a period of not more than 28 days to some workers.
no leave entitlement
14-18 days of paid leave annually
18 days of paid leave annually
18 days of paid leave annually
Employees can take as many as 16 days per year of sick leave. On these days, they receive half their regular pay but may need a medical certificate. For serious, long-term illnesses, a worker may be entitled to up to 121 days off, normally paid at 75% of their regular pay.
No official limit
No official limit
No official limit
No official limit
No official limit
No official limit
My official list
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
According to the Maternity and Paternity Leave Bill of 2023, maternity leave has increased from six weeks to 180 days, and mothers are paid their full salary during this period. For their second child, however, this period is reduced to 120 days and to 90 days for their third child. Fathers can now take 30 days of paid leave for each of their first three children but no leave after that.
In Pakistan, annual leave entitlements are governed by provincial Shops and Establishments Ordinances, which outline the rights of employees regarding paid time off from work. Typically, employees are entitled to between 14 to 18 days of annual leave per year, depending on their length of service and the specific policies of their employer. Annual leave accrues gradually throughout the year, usually based on the duration of continuous service with the employer. Employers are required to provide employees with their normal salary or wages during the period of annual leave, including any applicable allowances or benefits
Employers in Pakistan must give one month’s notice before terminating workers, and this notice must be given on paper. In some industries and provinces, a longer period is required. Employers cannot, however, dismiss female workers while they are on maternity leave. Workers can also resign by providing employers with 30 days’ notice.
Workers are entitled to severance pay unless terminated for misconduct. They receive pay equivalent to 30 days’ wages for every year they worked for an employer. This pay is also given if they worked at least more months after their last full year.
The social security system in Pakistan includes payments into Employees’ Old Age Benefits, Provincial Employer Social Security, and Worker’s Children Education schemes. Employees pay just 130 PKR/month into Old Age Benefits, while employers pay 780 PKR/month. Employers also contribute 6% of the workers’ salaries to social security, up to a maximum of 16,200 PKR.
In September 2023, the national minimum wage was increased to 32,000 Pakistani Rupees (PKR) per month (approximately 115 USD/month), which is far below the world average. Wages vary widely across the country, but on average, Pakistanis make between 80,000 and 90,000 PKR/month (about 285-320 USD/month). Skilled workers may make more, but these wages are still far below global averages.
Pakistan does not have a mandated 13th-month salary. However, employers with more than 20 employees are required to pay them bonuses if they’ve worked for more than 90 consecutive business days. These bonuses may represent up to 15-30% of the company’s profits.
Employees pay 130 PKR/month into Old Age Benefits, while employers are required to pay 780 PKR/month. Employers also contribute 6% of the workers’ salaries to social security, which is a maximum of 16,200 PKR.
Hire borderless talent with Horizons
With Horizons, you get quick service, transparent pricing, and expert support.
The biggest advantage of working with an EOR in Pakistan is that this enables you to hire Pakistan employees without needing to set up an entity. This will save you significant time and effort. The EOR also manages your employees and ensures compliance with local laws. Plus, it will help you to recruit quickly so you can have Pakistani employees on your payroll in a matter of days.
While foreign companies would have to wade through dozens of acts and ordinances to make sense of Pakistan labor law, expert EORs, like Horizons, have it covered. They have complete knowledge of these laws and experience complying with them to ensure that employees are treated fairly and equitably. They also protect your rights as an employer.
Holiday Schedule in Pakistan [2025]
