Basic information
Capital: Islamabad
Time zone: GMT+5
Language: Urdu、English
Currency code: PKR
Human Resources at a Glance
Contract Terms
The contract must be written in English and can be bilingual. It must be in writing and signed by both parties. The contract must include:
Protocol title
Identify both parties
Term of agreement
Position/place of work
reward
Mandatory benefit
Termination procedure
Dispute resolution
Guidelines Regarding Probation Period/Trial Period
The probation period is mandatory. The minimum probation period is 3 months and the maximum probation period is 6 months.
Regulations and Rules Regarding Working Hours
Standard working hours are eight hours a day and 40 hours a week. The standard work week is Monday through Friday.
Overtime payment is mandatory and may be included in the salary. Hours in excess of standard working hours are considered overtime. Employees can work up to three hours of overtime. For additional hours, the employee’s overtime pay is:
200% of the hourly rate for the first three hours.
300% of the hourly rate of public holidays
Overtime is paid according to the following rates
The minimum wage is PKR 25,000 per month.
Minimum Wage Requirements
Employer costs are typically estimated at 16.7-22.7% of an employee’s salary:
Sindh Social Security Institution for Employees (SESSI) – 6.00%, applicable only to employees with a monthly salary of less than PKR 30,000
Year-end bonus fund contribution – 8.33%
Life Insurance – PKR 608
Old-age Employee Benefit (EOBI) – PKR 1,250
Holiday bonus / 13th salary: 8.33%
Please note: Some contributions are capped, so percentages may vary.
Termination
Grounds
In Pakistan, termination can be complicated. Employers outside the probation period do not have the right to dismiss at will, dismissal must be justified. Termination of compliance includes:
Employee voluntary
Mutual agreement
The employer unilaterally based on:
Probation period
Objective reason
Disciplinary dismissal
Due to inappropriate performance at work
Expiration of contract
Notice Period
The minimum notice period is 60 days and may increase depending on the type of employment.
If the employee is paid on a monthly basis, 60 days
If the employee is a permanent worker, it is 120 days
Redundancy/Severance Pay
In Pakistan, all employees who are laid off are entitled to severance pay. Severance pay is 30 days’ pay for each year of service, up to a maximum of one month’s base pay.
Payment & leaveCompensation & Holidays
Salary Payment
Once a month
Payslip Payroll
In accordance with local laws and regulations of Pakistan, the contents applicable to payroll management solutions include but are not limited to the following:
According to the labor law of Pakistan, wages shall be paid in accordance with the time and manner agreed upon in the labor contract and shall not be less than the minimum wage standard. Therefore, payroll management solutions should include mechanisms for setting and adjusting wage calculation standards.
Social Insurance and welfare: Under Pakistani law, employers are required to purchase social insurance and provide benefits for employees, such as medical insurance, pensions, etc. Therefore, payroll management solutions should include mechanisms for the calculation and payment of social insurance and benefits.
Tax Administration: The Tax Law of Pakistan stipulates that employers should pay individual income tax for their employees. Therefore, payroll management solutions should include a mechanism for calculating and paying personal income tax.
Overtime and leave management: Pakistan’s labor law stipulates that employees should be paid overtime and leave pay according to a certain percentage when working overtime and leave. Therefore, payroll management solutions should include mechanisms for calculating and paying overtime and leave.
Compliance risks: In Pakistan, employers should comply with the relevant labor and tax regulations or risk fines and legal action. Therefore, payroll management solutions should include mechanisms for assessing and managing compliance risks.
Annual Leave
Full-time and part-time employees are entitled to 18 working days of paid leave (PTO) per year. The PTO accumulates 1 day for every 18 days of work. Employees are eligible for annual leave upon completion of the probation period.
Sick Leave
Employees are entitled to up to 14 days of paid sick leave.
Maternity & Parental Leave
In Pakistan, there is no legal provision for parental leave.
Tax and Social Security Information
Personal Income Tax
个人所得税的范围从0%到35%。所得税根据累进税率计算。家庭状况和子女数量等多个附加因素可能影响总税率。
| Taxable income(PKR)应纳税款 | Rate of tax 税率 |
| Up to PKR – 600,000 | 0% |
| Up to PKR – 1,200,000 | 5% |
| Up to PKR – 1,800,000 | 10% |
| Up to PKR – 2,500,000 | 15% |
| Up to PKR – 3,500,000 | 17.50% |
| Up to PKR – 5,000,000 | 20% |
| Up to PKR – 8,000,000 | 22.50% |
| Up to PKR – 12,000,000 | 25% |
| Up to PKR – 30,000,000 | 27.50% |
| Up to PKR – 50,000,000 | 30% |
| Up to PKR – 75,000,000 | 32.50% |
| Over PKR – 75,000,000 | 35% |
Social security
Pension fund
Social security
Disability insurance
Private Healthcare – Unisure (optional)
Private Healthcare – Allianz (optional)
Public Holidays 2024
| Occasion holiday | Date |
| Kashmir Day | 1.1 |
| Pakistan Day | 3.23 |
| Eid ul-Fitr Holiday | 4.10-4.12 |
| Labour Day | 5.1 |
| Eid ul-Adha Holiday | 6.17-6.19 |
| Ashura | 7.16-7.17 |
| Independence Day | 8.14 |
| Eid Milad un-Nabi | 9.16 |
| Allama lqbal Day | 11.9 |
| Quiad-e-Azan Day/Christmas Day | 12.25 |
| Day after Christmas * | 12.26 |
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