- Country Guide
- Pakistan
Pakistan
Last Update by Federico, 10 Sep 2024
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Exchange Rate
10 Oct 2024
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 | 1,200 |
| Monthly Train and Bus Tickets | 1,500 |
| 3 Bedrooms Rental (City Center) | 112,300 |
| 3 Bedrooms Rental (Outskirt) | 75,500 |
Current Inflation Rate
20.7%
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
|
50,000 |
|
Mid-Level
5 Years
|
100,000 |
|
Experienced & Managerial Level
10 Years
|
Over 200,000 |
|
Specialized & Senior-Level
15 Years
|
Over 350,000 |
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 |
| Gratuity |
30 days wages per year of service or periods exceeding 6 months 2 months' salary per year of service for staff with over 5 years of service |
- | All staff |
Other Benefit
Other common employment benefits in Pakistan include:
- Additional Health Insurance: Around 5,500 PKR per month
- Employees’ Provident Fund (EPF): 10% for staff and employers
- Housing Allowance: Around 24,000 PKR per month
- Car Allowance: Around 45,000 PKR
- Fuel Allowance: Around 15,000 PKR
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% |
| 600,000 – 1,200,000 | 5% |
| 1,200,000 – 2,200,000 | 15% |
| 2,200,000 – 3,200,000 | 25% |
| 3,200,000 – 4,100,000 | 30% |
| >4,100,000 | 35% |
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), and the maximum overtime hours must not exceed 12 hours per week
- Overtime: 200% pay per hour of normal wages
Hourly wage: Monthly wage/26 days*8 hours
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
-
Notice during probation for staff and employers:
- No notice -
Voluntary resignation and involuntary termination:
- No notice required
- Payment in Lieu of Notice is not possible -
Severance (gratuity):
- Staff are not eligible
Public Holiday
14 days
Country Level
| Date | Name |
|---|---|
| 05 Feb | Kashmir Solidarity Day |
| 23 Mar | Pakistan Day |
| 10 Apr - 12 Apr | Eid-ul-Fitr |
| 01 May | Labor Day |
| 17 Jun - 19 Jun | Eid al-Adha |
| 16 Jul - 17 Jul | Ashura |
| 14 Aug | Independence Day |
| 16 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 |
365 days a year 121 days a year |
All staff with tuberculosis/cancer Staff in Khyber Pakhtunkhwa/ Balochistan with other diseases |
| Paternity Leave | Up to 30 days | All eligible male staff |
| Pilgrimage Leave | Up to 30 days | All eligible Muslim staff during employment |
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
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Contact UsCountry Guide - Pakistan
Last updated: 10 Sep 2024
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 | 1,200 |
| Monthly Train and Bus Tickets | 1,500 |
| 3 Bedrooms Rental (City Center) | 112,300 |
| 3 Bedrooms Rental (Outskirt) | 75,500 |
Current Inflation Rate
20.7%
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
|
50,000 |
|
Mid-Level
5 Years
|
100,000 |
|
Experienced & Managerial Level
10 Years
|
Over 200,000 |
|
Specialized & Senior-Level
15 Years
|
Over 350,000 |
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 |
| Gratuity |
30 days wages per year of service or periods exceeding 6 months 2 months' salary per year of service for staff with over 5 years of service |
- | All staff |
Other Benefit
Other common employment benefits in Pakistan include:
- Additional Health Insurance: Around 5,500 PKR per month
- Employees’ Provident Fund (EPF): 10% for staff and employers
- Housing Allowance: Around 24,000 PKR per month
- Car Allowance: Around 45,000 PKR
- Fuel Allowance: Around 15,000 PKR
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% |
| 600,000 – 1,200,000 | 5% |
| 1,200,000 – 2,200,000 | 15% |
| 2,200,000 – 3,200,000 | 25% |
| 3,200,000 – 4,100,000 | 30% |
| >4,100,000 | 35% |
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), and the maximum overtime hours must not exceed 12 hours per week
- Overtime: 200% pay per hour of normal wages
Hourly wage: Monthly wage/26 days*8 hours
Employment Contract
Permanent
Probation
Up to 3 months
Termination
-
Notice during probation for staff and employers:
- No notice -
Voluntary resignation and involuntary termination:
- 1 month notice in writing
- Payment in Lieu of Notice can be given instead of notice -
Severance (gratuity):
- 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
-
Notice during probation for staff and employers:
- No notice -
Voluntary resignation and involuntary termination:
- No notice required
- Payment in Lieu of Notice is not possible -
Severance (gratuity):
- Staff are not eligible
Public Holiday
14 days
2024
| 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 |
365 days a year 121 days a year |
All staff with tuberculosis/cancer Staff in Khyber Pakhtunkhwa/ Balochistan with other diseases |
| Paternity Leave | Up to 30 days | All eligible male staff |
| Pilgrimage Leave | Up to 30 days | All eligible Muslim staff during employment |
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
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