Why Hire in Pakistan?

Looking to hire remote workers for your team? With Interloop, you can easily hire, pay, and support employees from anywhere in the world, making the entire process smooth and worry-free.

Capital City

Islamabad

Currencies

Pakistani Rupee
(PKR)

Population size

252,422,500

(est. 2024)

Languages spoken

Urdu

Why hire staff in Pakistan?

Our Services

Recruit Talent

Our recruitment service manages the entire process: planning, searching, screening, and evaluation, ensuring a seamless hiring experience.

Onboard Contractors

We handle hiring, onboarding, compliance, and payroll for contractors, letting your business tap into global talent for growth.

Run Global Payroll

Managing payroll across jurisdictions is complex and costly. We ensure timely, reliable payments for your employees and contractors worldwide.

Employment Contracts in Pakistan

There are 5 types of employment type, each type will represent different purpose on hiring in the country.

  • Definition: Standard employment post-probation.
  • Features: With this type of contract the employee will be eligible for the Job security, long-term employment, Life insurance, retirement plans, and a detailed employment agreement as per local law and the internal organization’s policy.
  • Definition: Trial period for assessing suitability for a permanent role.
  • Duration: 3-6 months, extendable.
  • Features: With this type of contract the employer will be eligible for the Evaluates performance and cultural fit, with less job security and benefits compared to permanent contracts.
  • Definition: Temporary appointment in place of an absent employee.
  • Features: With this type of contract the employer will be eligible for Ensures continuity of work, short-term duration.
  • Definition: For work expected to last less than nine months.
  • Features: With this type of contract, the employee will be eligible for project-based or seasonal work, with limited benefits.
  • Definition: For training and skill development.
  • Features: With this type of contract, the focus is on learning and professional growth, providing a pathway to permanent employment.

Probation and Confirmation

Any employment period exceeding six months will be considered as one year.

Duration

All newly appointed employees are required to complete a probationary period of 3-6 months, extendable up to an additional 3 months at the discretion of management based on performance evaluation.

Confirmation

Employees completing the probationary period may be confirmed based on performance evaluation and successful verification of all submitted testimonials

Appraisal

At the end of the probationary period, employees will be appraised for suitability for confirmation by HR or their line manager.

Labor laws in Pakistan

Any regular employee may be transferred between units, groups, or projects in the best interest of the organization.
All transfers require the approval of HR, the employee’s line manager, or at the organization’s discretion.

Working Hours

  • Standard Workweek: 48 hours (8 hours/day).
  • Breaks: Total hours including breaks should not exceed 9 hours/day or 48 hours/week.

Overtime

  • Eligibility: Work beyond 9 hours/day or 48 hours/week.
  • Pay Rate: 200% of regular pay for all shifts, 300% on public holidays.

Weekly Rest Time

  • Entitlement: 1 day of rest per week (usually Sunday).
  • Compensation: Employees cannot work 10 consecutive days without a compensatory rest day.

Payroll Requirements

Payroll processing may occur on a weekly, bi-monthly, or monthly basis, with the monthly schedule being the most common. Employee payments should be made via bank transfer. At the end of each pay period, employees must receive a payslip detailing their earnings, taxes, benefits, and deductions.

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Leave Management & Leave Entitlements​

All employees are entitled to avail leaves as per the organization’s policy, subject to approval from their line manager and the organization’s discretion, in accordance with Pakistan’s law.

All leaves are calculated on a calendar-year basis and can be pro-rated in case the employee joins the organization mid-year.

Carry-over of leave and leave encashment are subject to the organization’s discretion or internal policy.

  • Entitlement: 14 calendar days paid leave after 12 months of continuous service.
  • Maximum Leave: Up to 28 days, at the employer’s discretion.

Entitlement: Minimum of 8 paid sick leave days per year with a medical certificate for absences over 3
davs.

  • Entitlement: Up to 10 days of casual leave per year.
  • Conditions: Maximum of 3 working days at a time, available post-probation, not carried forward to the next
    year.
  • Entitlement: Up to 12 weeks of fully paid leave, taken 6 weeks before and 6 weeks after delivery.
  • Eligibility: Female employees must have been employed for at least 4 months preceding the delivery date.

Entitlement: Up to 30 days of full pay leave, granted no more than three times during their entire service.

Entitlement: Unpaid leave of up to 30 days for pilgrimage, once during employment.

Policy: Leaves for religious festivities and national holidays are allowed as per Federal Government notitications.

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Termination in Pakistan

Notice Period

  • Probationary Employees: Minimum notice period of 7 days, or payment in lieu of notice.
  • Permanent Employees: Notice period of 1 month, or payment in lieu of notice.

Resignation

Terminating a Contract

Here are methods for contract termination:

  • Expiration: Contracts may have a defined end date or terminate after a specified period. Upon expiration, parties are no longer bound by its terms.
  • Mutual Agreement: Parties can mutually agree to terminate the contract through written or verbal agreement.
  • Termination for Cause: If one party breaches contract terms, the other may terminate it by providing written notice detailing the reasons.
  • Termination for Convenience: Certain contracts include clauses allowing one or both parties to end it without cause if circumstances warrant.

Upon termination, parties are released from their contractual obligations. It is imperative to ensure all contractual terms are fulfilled beforehand to minimize potential disputes. All terminations and resignations must be documented with stated reasons. The final settlement will be shared and approved before proceeding. All organizational assets must be returned upon separation.

Severance Payment

  • Entitlement: 30 days’ wages for each completed year of service for non-misconduct termination.
  • Calculation: Based on the average wage of the last three months.

Group Life Insurance

As mandated by law, all permanent employees are covered by mandatory life insurance provided by the organization. Employers must ensure that employees receive group life insurance coverage from a reputable insurance company, with a death benefit of up to PR 500,000.

Gratuity

This is a benefit that offers a lump sum payment to employees that completed a certain number of years of service with the employer. Rate of gratuity is “30 days’ wages for every completed year of service or any period in excess of six months”. If the period of employment is less than six months, no gratuity is payable.

Social Security

The Employees’ Old-Age Benefits Institution (OBI) is a social insurance and pension program for both employers and employees, managed by the Government of Pakistan. It operates under the Ministry of Overseas Pakistanis and Human Resource Development.

Under the EOB Scheme, insured persons are entitled to various benefits, including:

  1. Old-Age Pension: Provided upon retirement.
  2. Invalidity Pension: Offered in cases of permanent disability.
  3. Old-Age Grant: Given if an insured person reaches the superannuation age but does not meet the minimum requirement for a pension.
  4. Survivor’s Pension: Offered to the family in the event of the insured person’s death.
  • Employer’s share of contribution: 5% of the minimum wage, which is PKR 37,000.
    Calculation: 37,000 * 5% = PKR 1,850 per month.
  • Employee’s share of contribution: 1% of the minimum wage, which is PKR 37,000.
    Calculation: 37,000 * 1% = PKR 370 per month.

Provident Fund

Employees can enroll in the company’s Provident Fund Scheme (PFS) from the date of Job confirmation. However, joining PFS is optional.

  • Eligibility: All regular, temporary, and project-based staff.
  • Contribution: 8.33% of salary by both employee and employer.
  • Adjustment of Rate and Eligibility: The rate amount can be adjusted based on mutual agreement between the employee and employer. Employees will be eligible to receive the adjusted amount at the end of their service tenure.

Expense Reimbursement Policy

Receipts are required for all reimbursable expenses. Any work-related expenses must be submitted via an expense report that includes official receipts, following the applicable expense reimbursement policy. Reimbursements will be processed after the employee’s claim is reviewed and approved by HR or the line manager.

Holiday Bonus or 13th Month Pay

There is no legal requirement for employers to pay a 13th-month bonus or Eid holiday bonuses in Pakistan. This practice purely depends on the company’s or organization’s internal policy.

Brand Experience​​

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Get in touch

ThailanD

Level 3, Prasert Sutt Building 360 Sanambinnam Nonthaburi Road,
Bang Krasor, Mueang Nonthaburi,
Nonthaburi 11000 Thailand

Singapore

#23-05. International Plaza, 10 Anson Rd, Singapore 079903

Contact Us

TH Phone : +66 (0) 97 106 9113
SG Phone : +65 9102 0303
Office Phone : +66 (0) 2 007 0971
Email : enquiry@inlps.com
Line@ ID : @inlps

Our Hours

MON-FRI : 09:00 – 18:00

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