Easily Hire, Manage, and Pay Your Employees in Pakistan
RecruitGo's Employer of Record service in Pakistan enables employers to hire top Pakistani talent quickly and compliantly — without the cost and delay of setting up a local entity. You focus on growth; we handle EOBI, social security, and labor law compliance.
Why Foreign Companies Hire in Pakistan
Pakistan is South Asia's second-largest economy with over 230 million people. The country produces 500,000+ university graduates annually, with a rapidly growing IT sector earning over USD 3.5 billion in annual IT exports. Pakistan's young population (median age 22) and highly competitive salary costs make it one of the most cost-effective talent markets globally.
For foreign companies, Pakistan offers salary costs 80-90% lower than the US or UK for equivalent roles in software development, customer support, finance, and digital marketing. English proficiency is high in the professional class. The IT industry is growing at 20%+ annually, with major tech hubs in Lahore, Karachi, and Islamabad. The government promotes IT exports through zero withholding tax on IT services.
How RecruitGo Helps You Hire in Pakistan
Whether you need to hire without a local entity, run payroll, manage benefits, or navigate Pakistan's province-specific labor laws, RecruitGo has a service for each stage.
Employer of Record (EOR)
Hire employees across Pakistan without SECP registration. RecruitGo handles contracts, EOBI, provincial social security, income tax, and multi-province compliance.
Payroll Service
Already have a Pakistani entity? We process monthly payroll in PKR, calculate income tax per FBR slabs, remit EOBI and provincial contributions, and handle year-end reconciliation.
Employee Benefits
Design benefit packages that compete in Pakistan's growing tech talent market. We manage statutory contributions, group health insurance, provident fund, and gratuity.
Visa and Work Permits
Foreign nationals working in Pakistan need a work visa from the Ministry of Interior. We guide through the process including BOI registration.
Pakistan Employment Snapshot
Pakistan operates a federal-provincial system where labor law varies significantly by province.
| Currency | Pakistani Rupee (PKR) |
| Minimum wage (2025) | Federal: PKR 37,000/mo (~USD 130). Punjab/KP: PKR 40,000. Sindh/Balochistan: PKR 37,000 |
| Working hours | 48 hrs/week, 8 hrs/day + 1 hour lunch/prayer. 6-day week standard |
| Overtime | 2x ordinary rate. Max 12 hrs/week. 3x on public holidays |
| Probation | 3-6 months typical. Shorter notice during probation |
| Contract types | Permanent, fixed-term, temporary, contract, piece-rate |
| Annual leave | 14 consecutive days after 12 months. Cannot be split |
| Casual leave | 10 days/year. Cannot carry forward or encash |
| Sick leave | 8-16 days/year (varies by province). Medical cert required |
| Maternity leave | 180 days (1st child), 120 days (2nd), 90 days (3rd). Provincial: 12-16 weeks |
| Paternity leave | 30 days fully paid. Up to 3 times during service |
| EOBI | Employer: 5% of min wage. Employee: 1% of min wage. 10+ employees |
| Provincial social security | Employer: ~6% of wages (PESSI/SESSI/PESCI/BESSI) |
| Income tax | Progressive: 0% (up to PKR 600K) to 35% (above PKR 5.6M). +9% surcharge above PKR 10M |
| Gratuity | 30 days wages per year after 12 months. Alternative: provident fund |
| Termination notice | 30 days for permanent. Payment in lieu OK. No notice for misconduct |
| Public holidays | 13-15 days/year (varies by province). Islamic holidays shift annually |
| Language | English or Urdu. English standard for international employers |
How to Hire in Pakistan as a Foreign Company
SECP registration is straightforward but multi-province compliance adds significant complexity.
| EOR (RecruitGo) | Pakistani Pvt Ltd | Contractor | |
|---|---|---|---|
| Time to first hire | 3-5 business days | 4-8 weeks (SECP) | Immediate |
| Setup cost | None | PKR 50K-200K+ plus compliance | None |
| Compliance | RecruitGo | You | Contractor's responsibility |
| EOBI / social security | Handled by RecruitGo | Your responsibility | N/A |
| Multi-province compliance | Managed across all provinces | You manage per-province | N/A |
| Ideal for | 1-30 employees, testing | 30+, permanent operations | True project work |
Provincial labor law variation is the key challenge: After the 18th Amendment (2010), labor became a provincial subject. Each province has its own laws, minimum wages, social security institutions, and enforcement. Hiring across multiple cities requires compliance with different provincial frameworks. Through EOR, RecruitGo manages all provincial registrations.
IT sector tax incentives: Pakistan offers zero withholding tax on IT export services through PSEB-registered companies. This makes Pakistan extremely attractive for building offshore tech teams. The IT industry earns over USD 3.5 billion annually in exports.
Key Employment Rules in Pakistan
EOBI (Old-Age Benefits)
Federal scheme: employer 5% + employee 1% of minimum wage (not actual salary). For PKR 40,000 min wage: employer PKR 2,000/mo, employee PKR 400. Applies to 10+ employee establishments. Covers old-age pension, invalidity pension, and survivor's pension.
Provincial social security (PESSI/SESSI)
Each province has its own institution. Employer typically contributes ~6% of wages. Covers medical treatment, sickness benefit, maternity benefit, work injury, and death grants. No employee contribution. Registration and wage ceilings vary by province.
Leave and maternity
Annual leave: 14 consecutive days after 12 months (cannot be split). Casual: 10 days/year. Maternity: 180 days (1st child), 120 (2nd), 90 (3rd) under federal act. Provincial acts: 12-16 weeks. Paternity: 30 days fully paid, up to 3 times. Iddat leave: 130 days for female employees upon spouse's death.
Termination and gratuity
30 days notice for permanent employees, or payment in lieu. Gratuity: 30 days wages per completed year after 12 months. Can substitute with provident fund. Termination during maternity/sick/injury leave prohibited. Labor courts are employee-friendly.
Foreign worker requirements
Work visa from Ministry of Interior required. Business visa allows visits but not employment. BOI registration needed for longer-term. Pakistan origin cardholders have simplified requirements. IT sector has relaxed visa rules. Processing: 4-12 weeks.
What It Costs to Employ Someone in Pakistan
Total employer cost is typically 110-118% of gross — one of the most cost-effective markets in Asia. Main costs: EOBI (fixed on min wage), provincial social security (~6%), gratuity (8.33%).
| Component | Monthly (PKR) | Rate |
|---|---|---|
| Gross salary | 150,000 | — |
| EOBI (employer) | 2,000 | 5% of min wage (PKR 40K) |
| Provincial SS (PESSI) | ~9,000 | ~6% of wages |
| Gratuity provision | ~12,500 | 8.33% (30 days/year) |
| Total employer cost | ~173,500 | ~116% of gross |
EOBI is fixed on minimum wage (effective rate decreases as salary increases). Provincial SS rates/caps vary. Most employers also provide health insurance, meal allowance, and transport. IT employers often offer stock options and performance bonuses. EOR fee not included.
Common Questions
What companies ask most about hiring in Pakistan.
Yes, through an EOR. RecruitGo is a locally registered Pakistani company handling contracts, EOBI, provincial social security, income tax, gratuity, and multi-province compliance. Hire across Pakistan in 3-5 days without SECP registration.
EOBI: employer 5% + employee 1% of minimum wage (not actual salary). For PKR 40K min wage: employer PKR 2,000/mo. Provincial social security: employer ~6% of wages to PESSI/SESSI/PESCI/BESSI. No employee contribution to provincial SS.
Maternity: 180 days (1st child), 120 (2nd), 90 (3rd) under federal act. Provincial acts: 12-16 weeks. Paternity: 30 days fully paid, up to 3 times. Termination during maternity prohibited. Social security may reimburse part of maternity cost.
After the 18th Amendment (2010), each province has its own labor laws, minimum wages, social security, and enforcement. Hiring in Lahore (Punjab) and Karachi (Sindh) means two different legal frameworks. Through EOR, all provincial registrations are handled.
30 days wages per completed year after 12 months continuous service. Period exceeding 6 months counts as full year. Can substitute with provident fund. Legal obligation under provincial standing orders.
Zero withholding tax on IT export services through PSEB-registered companies. Tax exemptions on IT export revenue. PSEB registration available for IT/ITeS companies. Pakistan IT exports exceed USD 3.5 billion annually.
3-5 business days including contract, EOBI registration, provincial social security, FBR tax setup, and onboarding. Own Pvt Ltd via SECP: 4-8 weeks plus bank account and multi-province registrations.
