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Hiring in Pakistan through an EOR (2026)
Here's what you need to know before you hire in Pakistan: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
11%Employer cost on top
PKR 37,000Minimum wage / mo
14 daysPaid annual leave
Days, not monthsTime to hire via EOR
Last updated: August 24, 2026
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Pakistan at a glance
The statutory facts that drive a hire in Pakistan. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | PKR 37,000Dated | ILOSTAT · 2024 |
| 13th-month salary | noneCurrent | National government · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 11%Dated | ISSA Country Profiles · 2024 |
| Employee social securitywithheld from pay | 1%Dated | ISSA Country Profiles · 2024 |
| Corporate tax rate | 29%Current | PwC Worldwide Tax Summaries · 2026 |
Termination
| Notice period | 4.3 weeksCurrent | ILO EPLex · 2026 |
| Severance pay | 22.9 weeksCurrent | ILO EPLex · 2026 |
Leave & time off
| Paid annual leave | 14 daysCurrent | WageIndicator Foundation · 2026 |
| Maternity leave | 16 weeksCurrent | World Bank Women, Business and the Law · 2026 |
| Paternity leave | 0 weeksCurrent | World Bank Women, Business and the Law · 2026 |
Labour market
| Retirement age | 60Current | SSA Social Security Programs Throughout the World · 2026 |
| Unemployment rate | 5.4%Aging | World Bank Open Data · 2025 |
| GDP per capita | $1,596Aging | World Bank Open Data · 2025 |
| Union density | 4.7%Dated | ILOSTAT · 2016 |
Each row shows the year of the most recent citable source for that figure. Where a year looks old, that is the newest comprehensive source available, and we keep the sourced figure rather than substitute an unsourced newer one. Statutes may have changed since.
What it costs to hire in Pakistan
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $2,000 a year actually costs you as the employer.
| Gross annual salary | $2,000 |
| Employer contributions≈ 11% of gross | + $220 |
| Total employment cost | $2,220 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Pakistan on your own.
Working time
Standard full-time hours apply; overtime is regulated.
Pay & 13th salary
Minimum wagePKR 37,000
13th-month salarynone
Leave
Paid annual leave14 days
Maternity leave16 weeks
Paternity leave0 weeks
Termination
Notice period4.3 weeks
Severance pay22.9 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in Pakistan
Use an EOR when…
You're hiring one to a handful of people in Pakistan.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for Pakistan
Providers with strong Pakistan coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORMultiplier
From$459 / mo
EORPayoneer Workforce Management
From$199 / mo
EORRemoFirst
From$199 / mo
EORRemote
From$699 / mo
EORSwapp Agency
FromContact for pricing
Common questions about hiring in Pakistan
Common questions about hiring in Pakistan through an EOR.
Do I need a legal entity to hire someone in Pakistan? +
No. An Employer of Record (EOR) already has a legal entity in Pakistan and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Pakistan? +
On top of gross salary, employers in Pakistan contribute roughly 11% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Pakistan? +
The statutory minimum wage in Pakistan is PKR 37,000. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Pakistan? +
Ending employment in Pakistan generally requires a notice period of around 4.3 weeks and severance of about 22.9 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Pakistan? +
Employees in Pakistan are entitled to 14 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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