Pakistan 🇵🇰
Congratulations on your decision to hire in Pakistan! Pakistan is a beacon of business opportunity in South Asia, with its rapidly growing economy, a tapestry of cultural richness, and a skilled, multilingual workforce. Plane simplifies the hiring process for you by offering automated tax document collection, payroll, benefits administration, and more, while ensuring compliance and maximum efficiency. Still, hiring in a new country can pose certain challenges, so we’ve put together the following guide on how to navigate the process of hiring in Pakistan.
Currency
PKR
 Onboarding
2.5 to 4 weeks minimum
Employer Cost
14%
Pay Frequency
Monthly
Public Holidays
11
5 Considerations Before Hiring in Pakistan
As an employer in Pakistan, it is important to have a comprehensive employment contract that outlines the terms and conditions of the employment relationship. The contract should include need-to-know info on compensation, benefits, vacation time, and sick leave policies. Before onboarding a new employee in Pakistan, take a moment to consider the following:
Getting Started with Hiring in Pakistan
Employment Contract
In Pakistan, there are several types of employment contracts:
- Permanent or indefinite contracts
- Probationary contracts
- Badli (Alternate) contracts for employing workers in place of temporarily absent workers (e.g., on leave)
- Temporary contracts for periods of work less than nine months
- Apprentice contracts for training employees
- Project-based contracts for per-piece work
Payroll Timelines and Dates
Pay Frequency: Employee payroll is monthly, with 12 pay periods per year. Pay is distributed on the last business day of the month.Payroll Change Cutoff Dates: To meet payroll deadlines, any changes must be submitted to support@plane.com by the cutoff date. For Pakistan, the payroll change cutoff date is on the last business day of the previous month. For example, changes to June payroll would need to be received no later than May 31, if May 31 is a business day.Plane sends payroll summaries to admins at the end of the second week of the month. After that, charges are automatically debited. Payroll summaries are also available to admins in their Plane accounts. Payday may vary based on country requirements.
Working Hours
The standard legal limit for working hours in Pakistan is 48 hours per week across six days, with work days usually lasting eight to nine hours a day. Employees receive a one-hour break each day and must not work more than six hours continuously without a break. Employees who work more than 8.5 hours per day must receive at least two breaks.By law, employees cannot work 10 consecutive days without receiving a day off. Employees cannot be asked to work on a Sunday unless they are given a substitute day off within the preceding or following three days.Overtime is permitted, up to two hours per day and maximum 12 hours per week. Employees are entitled to additional pay for hours worked beyond their standard workweek, at a rate of double their normal rate of pay.Â
Public Holidays
Pakistan celebrates 11 public holidays:
- Kashmir Day
- Pakistan Day
- Eid al-Fitr
- Labor Day
- Eid al-Adha
- Ashura
- Independence Day
- Eid Milad un-Nabi
- Allama Iqbal Day
- Christmas Day/Quaid-e-Azam Day
- Day after Christmas
Compensation
We recommend using Plane's Remote Compensation Tool to check remote salary data in Pakistan by job title.
Health Insurance Benefits
Unlike some countries where health insurance is mandatory for all citizens or residents, Pakistan does not have a universal or compulsory health insurance system. As a result, many Pakistanis rely on out-of-pocket payments for healthcare services.Private health insurance is available and is increasingly being offered by employers as part of their benefits packages. We offer health insurance to Pakistan employees through BUPA Global.
Sick Leave
Employees may take up to 90 days of sick leave per calendar year. Employees can receive 50% pay for 16 days of sick leave if they provide a medical certificate, and 10 days of casual leave at full pay for sudden situations or illnesses.In the case of death during sick leave, the designated next of kin would be entitled to a death grant equal to the daily rate of sick leave benefits multiplied by 30.Â
Annual Leave
Employees are entitled to 14 days of paid annual leave after one year of continuous service. Any days that aren’t used within a given calendar year may carry over to the next year, as long as the carried over days don’t exceed 14 days.Before an employee takes their annual leave, the employer must pay half of the total payment due for their holiday period. Any accrued, unused vacation days must be paid out upon an employee’s resignation or termination.
Maternity / Paternity / Parental Leave
Female employees who have worked for at least four months before their child’s delivery date are eligible for paid maternity leave for three births: 180 days for the first child, 120 days for the second, and 90 days for the third. After the third birth, the employee is disqualified from receiving payments for maternity leave. Maternity leave begins six weeks before the employee’s delivery due date. Employers pay maternity leave in two payments: the first payment six weeks before the due date, and the second payment six weeks after the due date. Pakistan’s social security system offers an additional maternity leave benefit totaling 12 weeks of coverage to employees who contributed to social security for at least 180 days in the 12 months before taking maternity leave.Employees on maternity leave are protected from dismissal.Fathers are entitled to 30 days of paid paternity leave. Like maternity leave, paternity leave is only available for three separate occasions of a child’s birth, each period lasting 30 days. There is no legal requirement to provide adoption leave.
Employment / Termination
In Pakistan, either employer or employee may terminate their employment relationship with appropriate notice. The minimum notice period is 30 days.All employees who are terminated are entitled to severance pay, unless fired for misconduct. This severance amount is equal to 30 days of salary per year of service, up to six months of compensation.At Plane, we process involuntary offboarding via Mutual Termination Agreement (MTA) as a common practice that enables an employer to terminate an employee while trying to minimize the risk of litigation and cost. It is a separation agreement including unused leave, notice period, severance, and terms negotiated between the parties in exchange for a waiver where an employee waives their right to challenge a termination as unfair or unlawful. The notice period varies based on the length of employment.It is important to note that Plane often cannot facilitate unilateral terminations or dismissals. These types of termination are a potential source of litigation that can expose employers to increased damages and other costs. Also, the reason for these terminations may not be valid for an employer of record. The notice period varies based on the length of employment.We ask that you give us as much notice as possible and involve us right from the beginning of the process so we can better support and guide you through the process. Involuntary termination can take time to negotiate with the employees to mutually agree and end on good terms. Here you can find additional information on how to terminate an employee.
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Annual cost of employment*
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*rates for: July 23, 2024
Once you have sorted out the details mentioned above, you can add the employee to the Plane platform. We provide a step-by-step workflow that shows what tasks need to be completed, as well as real-time updates and notifications. This way, you can stay on top of the hiring process at all times. With Plane, you can confidently hire, knowing that you have a powerful platform at your disposal to manage the entire process from start to finish. Here are the instructions for adding a new employee to the platform:
How to hire and onboard an employee
Plane offers a guided process for administrators and managers to hire and onboard their new employees...
Learn moreHiring an employee in a new country can be a complex process, but with the right guidance and resources, it can be a smooth and successful transition. At Plane, we're committed to helping you navigate the process of hiring an employee in Pakistan. We'll keep you informed and up-to-date with the latest regulations and employment laws.Best of luck with your new hire, and welcome to Pakistan!
Frequently Asked Questions
Here are the answers to some common questions about hiring employees in Pakistan with Plane:
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