Hiring From Pakistan? Here's What You Need To Know!

In recent years, Pakistan has opened its gates to newer businesses in multiple domains. As a middle-income country with youth brimming with technological skills; the government has taken adequate initiatives to ensure their effort bears fruit.?

From making policies to engage in international trade easier to tax reforms that break the barrier to international revenue, the government has successfully achieved its aim.

These business-friendly policies have made hiring in Pakistan a comprehensive process. The entry of multinational companies like KIA, Exxon, and Hyundai has also increased employment rates– proving to be a successful venture.?

Though the workforce is friendly and has competitive labor costs, employment laws are extensive and the best way to abide by them is to know the ins and outs of hiring in Pakistan.?

Why Choose Pakistan For Hiring Employees?

Due to the high influx of talented professionals residing in Pakistan, the competitiveness makes it the perfect place to hire employees.?

Alongside this, the growing digital infrastructure– the country boasts a youthful and dynamic workforce fit for any task. Their proficiency in English is also a major instigator in companies that opt to hire from Pakistan.?

These skills make the Pakistani workforce the perfect fit for roles in IT, software development, and social media marketing to name a few. This becomes even more desirable when the cost of hiring is low compared to other countries.?

Legal Compliances For Hiring In Pakistan?

Before hiring from Pakistan, employers must follow certain laws and regulations as follows:?

The legal framework for employment is a hybrid of constitutional principles; laws from the colonial era and modern-day regulations. From this, key features include the right to a retirement plan and setting a minimum wage of around PKR 37,000 as of 2024.?

Furthermore, Pakistani employees are also entitled to public holidays, such as 14 August Independence Day and 23 March Pakistan Day.

Taxation rules also apply as per the policies– 20% corporate tax for companies, sales tax of 17%, and the general income tax rate for individuals earning above PKR 40,000.?

Process Of Hiring In Pakistan?

Hiring in Pakistan for the first time can be overwhelming. When navigating unfamiliar laws, the dive into the unknown can be a fright. Hiring in Pakistan is usually done by hiring independent contractors; using an employer of record service(EOR) or setting up legal entities.?

These options may seem like the same thing but there are a few differences between them. The ways to hire in Pakistan is by the following ways:?

• Setting a local entity– Establishing an entity reduces the risk exposure and helps in direct hiring. However, this can be time-consuming and a bit costly– making it impractical for companies to consider.?
• Partnering with an EOR– EOR services, like Iqbal manpower, are third-party entities that serve as legal employers for international hiring. These services handle the legal and taxation aspects of international hiring.?
• Independent contractors– Hiring independent contractors allows companies to have flexibility and an affordable alternative to hiring from elsewhere.?

Types Of Employment Contracts

In Pakistan, multiple sorts of employment agreement contracts exist to fit various roles and durations. The diversity in these contracts helps regulate the relationship between employer and employee.??

Amongst these, the main kinds of contracts include:?

• Permanent contracts– These provide definite job security and benefits such as health insurance, paid time off, and retirement plans.?
• Contract workers– These are used to hire people for specific durations or tasks; the terms often vary with the job.?
• Temporary contracts– These offer less job security, although they are used for specific tasks or limited-duration work.?
• Probationary contracts– Lastly, these are typically for three months acting as a buffer between the actual hiring. This helps employers evaluate new employees before hiring.?

Thus, these contracts help safeguard employee rights while also enabling flexibility.?

Work Permits And Visa In Pakistan?

While there are no visa requirements for digital employees, the same can't be said about physical ones. The most common way to earn a visa is by obtaining a work visa.?

This is usually done by applying and being accepted for the work visa quota. Afterwards, a signed employment letter should be submitted as proof of employment in the country of stay.?

Once that has been processed and accepted, the work visa should be granted in a few weeks. The estimated time for processing visas is around 4-6 weeks with an added week or two in case of delay.?

Wrap Up?

Hiring from a different country can be risky; the lack of knowledge about what's to come can be a hurdle. Fortunately, the simple compliance laws and ease of transmission make hiring from Pakistan easier. With how dense the market is, it is filled with talented individuals eager to showcase their skills.?

So, what's the hold-up? Do not let borders and time zones set you from achieving your career goals; take the leap of faith and reach for the stars.