How to hire remote employees in

Pakistan

Pakistan is home to some of the best remote talent on the planet. But, hiring that talent can seem confusing. That’s what we’re for. In the next five minutes, we’ll cut through the noise on hiring in Pakistan and teach you how you can onboard the talent you need—without paying thousands in legal fees or spending months buried in paperwork.

Country snapshot

CURRENCY
Pakistan Rupee (PKR)
EMPLOYER TAXES
11%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Urdu

What to know before you hire in 

Pakistan

Laws about hiring are complicated, and the same is true in Pakistan. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Pakistan, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 

Pakistan

, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 

Pakistan

. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 

Pakistan

 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 

Pakistan

Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 

Pakistan

.

It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 

Pakistan

 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

It’s less risky than hiring employees

Hiring employees is a bigger commitment, and generally puts you at a bigger risk for legal fees. When you hire contractors overseas, your biggest risk is misclassification—but even then, misclassification penalties are often minimal and just require you to pay off any compensation that the person would have been owed as an employee.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 

Pakistan

?

If you’re hiring contractors in 

Pakistan

, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 

Pakistan

Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 

Pakistan

If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Pakistan than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Pakistan.

Taxes in 

Pakistan

Employer tax

Healthcare

Pension

Individual tax

Leave

Paid Time Off (PTO)

PTO is calculated by the:

  • Employees in Pakistan are entitled to 14 days of paid leave. They gain this right after they have completed 12 months of service.
  • Employees are paid their normal wages during leave. Factory workers receive half of their pay due before the beginning of the leave.  
  • Annual leave cannot be divided into parts and should be taken in its entirety. Unused leave is transferred to the following year. The maximum amount of transferable days is 14.  

Public Holidays

There are 10 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • 10 days of casual leave upon contingent situations such as sudden illness or any other urgent purpose.
  • Employees receive 16 days on full pay and 8 days on half pay for the sick leave but should provide a medical certificate certified by a Doctor.
  • After the initial 16 days of sick leave, employers can offer employees sickness benefits for a period of 121 days at 75% of their last salary.
  • If employees are ill with tuberculosis or cancer, they are given a maximum of 365 days and receive their full wages. 
  • To receive benefits, the employee must have at least 90 days of contributions in the six months before sickness or injury. 

Maternity Leave

Female employees are eligible to take 3 months of paid maternity leave.

The six-week post-natal leave is obligatory. In order to receive maternity leave, the employee should be working for the same employer for at least 4 months before she gives birth.

No employer is permitted to terminate the female employee while she is on maternity leave.

In order to receive benefits, the employee must have at least 180 days of contributions in the year before the expected birth of the child.  

Paternity Leave

Fathers who are eligible will receive one-month leave for each of their first three children.

Parental Leave

No statutory law for parental leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

If a female employee’s husband dies, the employer must provide paid Iddat leave. This is a waiting period that the employee receives a normal wage.

Termination

Termination Process

A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.

Notice Period

The notice period in Pakistan is:

Both employee and employer should provide a months’ time notice.

Advanced notice is not required for temporary workers. If advance notice is not provided, a monthly salary in its lieu shall be provided.

Severance Pay

When employees are discharged from work, they are given severance pay.

The pay amounts to 30 days’ wages for each completed year of service. Employees do not receive severance pay if they are dismissed for misconduct.

Probation Period

The probationary period typically lasts 3 months.

Employee requirements in 

Pakistan

Working Hours

Normal working hours are a maximum of 9 hours a day and 48 hours a week. Anything over this is considered overtime.


Overtime

If employees work more than stipulated 9 hours per day and 48 hours per week, they are entitled to overtime pay.

Overtime pay in Pakistan is 200% the employees’ regular pay. During holidays employees receive 300% the pay rate.

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