- Country Guide
- Pakistan
Pakistan
Last Update by Cecilia, 12 Feb 2025
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Exchange Rate
19 Apr 2025
Cost of Living
Indicative value for a working adult in a city: Islamabad
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (PKR) |
|---|---|
| McDonalds Set Meal | 1,400 |
| Monthly Train and Bus Tickets | 1,900 |
| 3 Bedrooms Rental (City Center) | 140,390 |
| 3 Bedrooms Rental (Outskirt) | 81,794 |
Current Inflation Rate
4.1%
Wage
Minimum Wages
- The minimum wage is 37,000 PKR per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (PKR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
60,000 |
|
Mid-Level
5 Years
|
120,000 |
|
Experienced & Managerial Level
10 Years
|
250,000 |
|
Specialized & Senior-Level
15 Years
|
500,000 |
Annual Salary Growth
5%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Employees Old-Age Benefits Institution (EOBI) |
1,850 PKR (5% minimum wage) |
370 PKR (1% Minimum wage) |
All staff, fixed amount based on percentage of minimum wage |
| Employees’ Social Security Institution (ESSI) | 6% | 1% | All staff (not mandatory) |
| Workers Welfare Fund (WWF) | 2% | - | All industrial staff |
| Employee Provident Fund (EPF) | 8.33% | 8.33%, can choose to contribute more | All staff |
Other Benefit
Other common employment benefits in Pakistan include:
- Communication Allowance: PKR 11,000 - 14,000/ month
- Transportation Allowance：PKR 50,000 - 83,000 / month
- Employer usually offer employee medical allowance to compensate employee medical expense. 10% of basic salary can be tax exempt
- Employer needs to have profit sharing scheme if with more than 50 employees, should be 15% of profit if profit is less than total salary of all employees; Or 30% of profit if profit is higher than total salary of all employees.
Income Tax
Residents
-
Tax period: 1st July- 30th June of the following year
Tax filing start date: 1st August of the following year
Tax filing due date: 30th September of the following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0 - 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 2,200,000 | PKR 30,000 + 15% of the amount exceeding PKR 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 180,000 + 25% of the amount exceeding PKR 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 430,000 + 30% of the amount exceeding PKR 3,200,000 |
| >4,100,000 | PKR 700,000 + 35% of the amount exceeding PKR 4,100,000 |
Non-residents
- Non-residents are taxed on income sourced in Pakistan
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday- Friday
Overtime
The maximum daily working hours (including 2- 3 hours of overtime) cannot exceed 10-11, and the maximum overtime hours must not exceed 12 hours per week
- Overtime on weekdays: 200% pay per hour of normal wages
- Overtime on weekend or public holiday: 300% pay per hour of normal wages
Employment Contract
Fixed-Term
Classed as 'temporary contracts' and used for specified short-term projects and seasonal work
Contract Format
Contracts in Islamabad and Punjab: Must be written in Urdu. Bilingual Urdu to English translations are accepted and contracts are issued to staff on the first day of service
Payroll Currency
PKR
Probation
Up to 3 months
- Depending on contract agreements
Contract Period
Can be renewed indefinitely, as long as contracts do not exceed 9 months
Termination
In Pakistan, both resignation or involuntary termination is acceptable. Employer needs to have the permission from labor department if terminate more than 50% of employees.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice | - No notice | - No notice |
| Notice Period - Regular | - No notice required - Payment in Lieu of Notice is not possible | - No notice required - Payment in Lieu of Notice is not possible | - No notice required - Payment in Lieu of Notice is not possible |
| Severance Pay | - Staff are not eligible | - Staff are not eligible | - Staff are not eligible |
Public Holiday
14 days
Country Level
| Date | Name |
|---|---|
| 05 Feb | Kashmir Solidarity Day |
| 23 Mar | Pakistan Day |
| 31 Mar - 03 Apr | Eid-ul-Fitr |
| 01 May | Labor Day |
| 07 Jun - 09 Jun | Eid al-Adha |
| 05 Jul - 06 Jul | Ashura |
| 14 Aug | Independence Day |
| 05 Sep | Eid Milad un-Nabi |
| 09 Nov | Iqbal Day |
| 25 Dec | Quaid-e-Azam Day |
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 14 calendar days | All staff |
| Maternity Leave |
6 months for the 1st baby 4 months for the 2nd baby 3 months for the 3rd baby |
All female staff with 4 months service before leave beings |
| Sick leave | 8 days minimum | All staff |
| Paternity Leave | Up to 30 days | All eligible male staff |
| Casual Leave | 10 days | All staff |
Reference
- https://www.finance.gov.pk/circulars/circular_02112023.pdf
- http://www.eobi.gov.pk/introduction/Contribution.html
- https://pessi.punjab.gov.pk/overview
- https://joshandmakinternational.com/an-overview-of-the-various-labor-laws-in-pakistan/
- https://senate.gov.pk/uploads/documents/1580369887_449.pdf
- https://ophrd.gov.pk/Detail/MDNiOWJlZWEtNWE0OC00N2M3LWIxMTAtNzdjMjg4ZWE0YjYx
- https://www.zameen.com/Rentals_Flats_Apartments/3bed-rent/Islamabad-3.html
- https://tradingeconomics.com/pakistan/inflation-cpi
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Contact UsCountry Guide - Pakistan
Last updated: 12 Feb 2025
Exchange Rate
Currency (PKR)
- 1 CNY = 0.185 PKR
- 1 USD = 1.32 PKR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
Cost of Living
Indicative value for a working adult in a city: Islamabad
Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff
| Living Requirement | Indicative Amount (PKR) |
|---|---|
| McDonalds Set Meal | 1,400 |
| Monthly Train and Bus Tickets | 1,900 |
| 3 Bedrooms Rental (City Center) | 140,390 |
| 3 Bedrooms Rental (Outskirt) | 81,794 |
Current Inflation Rate
4.1%
Wage
Minimum Wages
- The minimum wage is 37,000 PKR per month
Median Salary
Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.
| Job Level | Monthly Salary (PKR) |
|---|---|
|
Entry-Level
Fresh Graduate
|
60,000 |
|
Mid-Level
5 Years
|
120,000 |
|
Experienced & Managerial Level
10 Years
|
250,000 |
|
Specialized & Senior-Level
15 Years
|
500,000 |
Annual Salary Growth
5%
Statutory Contribution
Country Level
| Type | Employer Rates | Employee Rates | Notes |
|---|---|---|---|
| Employees Old-Age Benefits Institution (EOBI) |
1,850 PKR (5% minimum wage) |
370 PKR (1% Minimum wage) |
All staff, fixed amount based on percentage of minimum wage |
| Employees’ Social Security Institution (ESSI) | 6% | 1% | All staff (not mandatory) |
| Workers Welfare Fund (WWF) | 2% | - | All industrial staff |
| Employee Provident Fund (EPF) | 8.33% | 8.33%, can choose to contribute more | All staff |
Other Benefit
Other common employment benefits in Pakistan include:
- Communication Allowance: PKR 11,000 - 14,000/ month
- Transportation Allowance：PKR 50,000 - 83,000 / month
- Employer usually offer employee medical allowance to compensate employee medical expense. 10% of basic salary can be tax exempt
- Employer needs to have profit sharing scheme if with more than 50 employees, should be 15% of profit if profit is less than total salary of all employees; Or 30% of profit if profit is higher than total salary of all employees.
Income Tax
Residents
-
Tax period: 1st July- 30th June of the following year
Tax filing start date: 1st August of the following year
Tax filing due date: 30th September of the following year
Country Level
| Taxable Income | Rate |
|---|---|
| 0 - 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 2,200,000 | PKR 30,000 + 15% of the amount exceeding PKR 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 180,000 + 25% of the amount exceeding PKR 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 430,000 + 30% of the amount exceeding PKR 3,200,000 |
| >4,100,000 | PKR 700,000 + 35% of the amount exceeding PKR 4,100,000 |
Non-residents
- Non-residents are taxed on income sourced in Pakistan
Working Hours
Statutory
40 hours
8 hours a day, 5 days a week
Typical practice
40 hours
Monday- Friday
Overtime
The maximum daily working hours (including 2- 3 hours of overtime) cannot exceed 10-11, and the maximum overtime hours must not exceed 12 hours per week
- Overtime on weekdays: 200% pay per hour of normal wages
- Overtime on weekend or public holiday: 300% pay per hour of normal wages
Employment Contract
Permanent
Probation
Up to 3 months
Termination
In Pakistan, both resignation or involuntary termination is acceptable. Employer needs to have the permission from labor department if terminate more than 50% of employees.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice | - No notice | - No notice |
| Notice Period - Regular | - 1 month notice in writing - Payment in Lieu of Notice can be given instead of notice | - 1 month notice in writing - Payment in Lieu of Notice can be given instead of notice | - 1 month notice in writing - Payment in Lieu of Notice can be given instead of notice |
| Severance Pay | - Staff are entitled to gratuity for dismissals other than misconduct - Applies to staff with 6 months' service - Length of service payments are rounded up (over 6 months) and down (under 6 months) - Punjab and Islamabad: 30 days' gross salary for each completed year of service - Khyber Pakhtunkhwa and Sindh: 1 month gross salary for each competed year of service - Balochistan: 2 months' gross salary for each competed year of service | - Staff are entitled to gratuity for dismissals other than misconduct - Applies to staff with 6 months' service - Length of service payments are rounded up (over 6 months) and down (under 6 months) - Punjab and Islamabad: 30 days' gross salary for each completed year of service - Khyber Pakhtunkhwa and Sindh: 1 month gross salary for each competed year of service - Balochistan: 2 months' gross salary for each competed year of service | - Staff are entitled to gratuity for dismissals other than misconduct - Applies to staff with 6 months' service - Length of service payments are rounded up (over 6 months) and down (under 6 months) - Punjab and Islamabad: 30 days' gross salary for each completed year of service - Khyber Pakhtunkhwa and Sindh: 1 month gross salary for each competed year of service - Balochistan: 2 months' gross salary for each competed year of service |
Fixed-Term
Classed as 'temporary contracts' and used for specified short-term projects and seasonal work
Probation
Up to 3 months
- Depending on contract agreements
Termination
In Pakistan, both resignation or involuntary termination is acceptable. Employer needs to have the permission from labor department if terminate more than 50% of employees.
| Voluntary Resignation | Involuntary Termination | Economic Layoff | |
|---|---|---|---|
| Notice Period - Probation | - No notice | - No notice | - No notice |
| Notice Period - Regular | - No notice required - Payment in Lieu of Notice is not possible | - No notice required - Payment in Lieu of Notice is not possible | - No notice required - Payment in Lieu of Notice is not possible |
| Severance Pay | - Staff are not eligible | - Staff are not eligible | - Staff are not eligible |
Public Holiday
14 days
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave | 14 calendar days | All staff |
| Maternity Leave |
6 months for the 1st baby 4 months for the 2nd baby 3 months for the 3rd baby |
All female staff with 4 months service before leave beings |
| Sick leave | 8 days minimum | All staff |
| Paternity Leave | Up to 30 days | All eligible male staff |
| Casual Leave | 10 days | All staff |
Reference
- https://www.finance.gov.pk/circulars/circular_02112023.pdf
- http://www.eobi.gov.pk/introduction/Contribution.html
- https://pessi.punjab.gov.pk/overview
- https://joshandmakinternational.com/an-overview-of-the-various-labor-laws-in-pakistan/
- https://senate.gov.pk/uploads/documents/1580369887_449.pdf
- https://ophrd.gov.pk/Detail/MDNiOWJlZWEtNWE0OC00N2M3LWIxMTAtNzdjMjg4ZWE0YjYx
- https://www.zameen.com/Rentals_Flats_Apartments/3bed-rent/Islamabad-3.html
- https://tradingeconomics.com/pakistan/inflation-cpi
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000