Pakistan

Last Update by Katie, 14 May 2024

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Exchange Rate

13 Jun 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 PKR 32,000 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
32,000
Mid-Level
5 Years
40,000
Experienced & Managerial Level
10 Years
100,000
Specialized & Senior-Level
15 Years
250,000

Annual Salary Growth

5%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Employees Old-Age Benefits Institution (EOBI) 5% 1% All eligible employees and capped at PKR1600 per month.
Employees’ Social Security Institution (ESSI) 6% 1% All eligible employees.
Workers Welfare Fund (WWF) 2% - All eligible employees.
Gratuity 30 days wages / year of service or periods exceeding 6 months
2 months' salary / year of service for employees with 5+ years of service.
- All eligible employees.

Other Benefit

Other common employment benefits in Pakistan include:

  • Employer used to provide additional health insurance, around USD 20 per month.
  • Employees’ Provident Fund (EPF): 10% for employee and employers -depending on employment contracts signed.

Income Tax

Residents

  • Tax period: 1 Jul to the 30 Jun of the following year.
    Tax filing start date: 1 August of the following year.
    Tax filing due date: 30 September of the following year.

Country Level

Taxable Income Rate
0 - 600,000 0%
600,000 – 1,200,000 2.5%
1,200,000 – 2,400,000 12.5%
2,400,000 – 3,600,000 22.5%
3,600,000 – 6,000,000 27.5%
>6,000,000 35%

Non-residents

  • Non-residents are solely taxed on their 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 to 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

Up to 9 months

Probation

up to 3 months.

  • Depending on contract agreements

Termination

For temporary working or replacement, contracts can not be terminated before the end date.

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 1st baby – 6 months
2nd baby – 4 months
3rd baby – 3 months
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 employees and to be taken after the delivery of the baby and can enjoy 3x one-month paid leave for the duration of the service
Pilgrimage Leave Up to 30 days of unpaid leave All eligible Muslim staff only allowed to take once during employment

Reference

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