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Employer of Record Pakistan
Hire staff and expand your business in Pakistan with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Pakistan designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Pakistan. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Pakistan takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Pakistan
A Brief Guide to Pakistan
The Islamic Republic of Pakistan, a South Asian country of rich historical and cultural heritage, is nestled between the Arabian Sea, India, China, Afghanistan, and Iran. It is characterized by diverse landscapes, from arid deserts to the soaring peaks of the Himalayas, offering a captivating mix of urban development and natural beauty.
Category | Information |
Location | South Asia |
Capital City | Islamabad |
Official Languages | Urdu, English |
Area | 881,913 km² |
Population | Approximately 240 million |
Currency | Pakistani Rupee (PKR) |
Major Cities | Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad |
GDP | Approx. $400 billion |
Major Industries | Textiles, food processing, pharmaceuticals, construction materials, clothing and apparel, paper products, shrimp |
Business Culture
Business Culture in Pakistan
When it comes to business culture, Pakistan is highly influenced by Islamic traditions and customs. Punctuality is appreciated, but meetings often start late. Relationships and trust are cornerstones of business dealings here; often more importance is given to these aspects than to contractual agreements. Dress conservatively – suits for men, while women are expected to cover their arms and legs. Always address business counterparts with their professional title, if they have one. English is widely used in business circles, but learning a few phrases in Urdu can go a long way in establishing rapport.
Payroll and Taxes
Payroll and Taxes in Pakistan
Employee Taxation
In Pakistan, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (PKR) | Tax Rate |
0 – 600,000 | 0% |
600,001 – 1,200,000 | 2.5% |
1,200,001 – 2,400,000 | 12.5% |
2,400,001 – 3,600,000 | 22.5% |
3,600,001 – 6,000,000 | 27.5% |
6,000,001 + | 35% |
Employer Taxation
In Pakistan employers are required to make contributions to a public pension scheme. The level of contribution is set at 5% of the minimum wage.
Pension and Healthcare
Pakistan Pensions
In Pakistan, pension schemes are typically administered by the Employees Old-Age Benefits Institution (EOBI) for private sector employees and by the government for its public sector employees. Funding for these pension schemes generally comes from both employers and employees, with contributions based on salaries. The state also provides social insurance, including old age pensions and disability benefits, which is funded through taxes.
Healthcare in Pakistan
Pakistan has a mixed healthcare system with public and private sectors. The public healthcare system is administered by the government and funded primarily through general taxation. Public healthcare facilities provide services either free of cost or at subsidized rates. However, the quality of care in these facilities can vary greatly, and in many instances, patients might face longer waiting times and over-crowded conditions.
The private healthcare sector, on the other hand, offers a much higher standard of care with modern medical facilities, but it’s considerably more expensive and largely inaccessible for low-income groups. Many Pakistanis also rely on out-of-pocket payments for healthcare, making access to healthcare strongly dependent on individual or familial wealth. Healthcare accessibility in urban areas is far better than in rural regions where the infrastructure is not as developed.
Employment Law
Employment Law in Pakistan
Relevant Legislation: Employment in Pakistan is primarily regulated by the Constitution of Pakistan 1973, the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, the Workmen’s Compensation Act 1923, and the Employment of Children Act 1991.
Employment Contracts: Employment contracts in Pakistan can be written or oral, permanent or fixed-term. However, written contracts are recommended for clarity and legal protection. These contracts should specify terms of employment, job description, remuneration, working hours, and termination conditions.
Working Hours: A standard working week in Pakistan is typically 48 hours, spread over six days. Workers are usually entitled to one rest day per week.
Leave: Employees are entitled to annual leave of 14 days for those working five days a week and 18 days for six-day workers. Sick leave and casual leave are usually combined into a total of 10 days per year. Maternity leave of up to 12 weeks is available for female employees.
Overtime: Overtime is generally compensated at twice the standard wage rate. The law allows for a maximum of 12 hours of work in any single day, including overtime.
Termination: Employers may terminate employees for reasons including misconduct, consistent poor performance, or restructuring. A clear reason should be provided and proper procedures must be followed, as outlined in the employment contract.
Notice: Employers are typically required to provide one month’s notice for termination, or wages in lieu of notice. However, in cases of gross misconduct, notice may not be necessary.
Severance Pay: Severance pay is not statutorily mandated in Pakistan but can be part of the contractual agreement between an employer and an employee.
IMMIGRATION
Work Permits in Pakistan
The immigration system in Pakistan is overseen by the Directorate General of Immigration & Passports (DGIP) under the Ministry of Interior, Government of Pakistan. The DGIP handles all matters related to the immigration process, from visa issuance and extensions to nationality and naturalization issues, among others.
For individuals seeking employment in Pakistan, a Work Visa is typically required. To obtain a Work Visa, the applicant must have a valid job offer from a Pakistani company. The employer in Pakistan typically must also prove that the role cannot be filled by a local candidate. Once the Work Visa is granted, the foreign national can legally work in the country. The Work Visa is usually valid for one year but can be extended.
For entrepreneurs and investors, a Business Visa is often the preferred choice. This visa allows foreign nationals to engage in commercial or investment activities in Pakistan. A Business Visa is initially granted for three months but can be extended up to five years.
For all visas, applications should be made at a Pakistani embassy or consulate in the applicant’s home country. The process involves submitting the necessary documents, paying a fee, and possibly attending an interview.
Public Holidays
Pakistan Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Kashmir Day | February 5 |
Pakistan Day | March 23 |
Labor Day | May 1 |
Independence Day | August 14 |
Defense Day | September 6 |
Allama Iqbal Day | November 9 |
Quaid-e-Azam Day | December 25 |
Eid-ul-Fitr | Varies (Shawwal 1-3) |
Eid-ul-Azha | Varies (Dhu al-Hijjah 10-13) |
Ashura | Varies (Muharram 9-10) |
Eid Milad-un-Nabi | Varies (Rabi’ al-awwal 12) |
Isra and Mi’raj | Varies (Rajab 27) |
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in Pakistan is right for you?
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The Benefits
Pakistan Employer of Record Benefits
When you choose Agility EOR to expand in Pakistan, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Pakistan so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Pakistani authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Pakistan payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.