Hire and pay employees in
Pakistan, hassle-free

The individual income tax ranges from 0% to 35%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The employer cost is generally estimated at 22.66% + fees of the employee's salary.

• Sindh Employees’ Social Security Institution (SESSI) - 6.00%*
• Gratuity Fund Contribution - 8.33%
• 13th Salary - 8.33%
• EOBI (employee-old-age-benefit) - PKR 1,850
• Life insurance - PKR 608

Please note: some contributions have limits, so percentages may vary.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

• 200% of the hourly rate, the first three hours.
• 300% of the hourly rate, for public holidays

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in Pakistan can be complex. There is no at-will termination in Pakistan for employers outside the probation period and termination must be done for just cause. 

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job
• By the expiration of the contract

In Pakistan, all employees who are terminated are entitled to severance pay unless it was for misconduct. Severance pay is 30 days of salary per year of service up to six months based compensation.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Pakistan celebrates both 17 national and 22 regional holidays based on the location of the employee. 
National public holidays include:
- Kashmir Day
- Pakistan Day
- Eid ul-Fitr (3 days)
- Labor Day
- Youm-e-Takbeer
- Eid ul-Azha (3 days)
- Ashura (2 days)
- Independence Day
- Milad un-Nabi
- Allama Iqbal Day
- Quiad-e-Azam Day/Christmas
- Day after Christmas (for Christians only)

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions