Global payroll in Pakistan

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Rivermate's global payroll solution helps companies hire remote employees in Pakistan . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Pakistan.

1. Grow your team in Pakistan with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Pakistan

If you are interested in hiring a remote team in Pakistan, or even just individual remote employees in Pakistan, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Pakistan payroll solutions. As a Pakistan payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Pakistan. We are confident Rivermate’s payroll solutions Pakistan will help you grow as a business—because now, you won’t have to worry about your payroll solutions Pakistan. We take care of everything payroll!

With Rivermate, you can run Pakistan payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Pakistan

Once you've determined the best Pakistan payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Pakistan

Pakistan has an income tax system with different slab rates. Salaried employees pay taxes ranging from 5% to 35%, while individuals earning less than PKR 600,000 are tax-free. These figures are subject to change each year, so keep an eye out for any income tax changes that may affect your employees.

Employers are required to contribute to Pakistan's Social Security program on behalf of all employees, up to 7% of an employee's wages for social security and 5% for Old Age Benefit. You are not required to make contributions for employees earning more than PKR 400 per day or PKR 10,000 per month.

5. Payroll options for companies in Pakistan

Companies that wish to expand their operations globally have four different payroll options in Pakistan. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Pakistan. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Pakistan payroll outsourcing: Outsourcing your payroll to an Employer of Record in Pakistan, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Pakistan

It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.

Rivermate's payroll services in Pakistan can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)

7. How to manage payroll in Pakistan

Companies that have a business presence in Pakistan have different ways of managing payroll. However, most of the options you have for running payroll in Pakistan are either expensive or require establishing a subsidiary in Pakistan. The cheapest, most efficient, and most reliable payroll processing system in Pakistan is by outsourcing payroll to Employers of Record (EOR) in Pakistan. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Pakistan. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Pakistan. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Pakistan.

8. Entitlement and termination terms in Pakistan

Either party may end the contract by giving the other party one month's notice. The same restriction does not apply to temporary employees, "badlis" (alternative employees who fill in for an absent permanent employee or probationer), or probationers. They do not have the right to a one-month notice. A terminated employee for any reason other than misconduct shall receive a severance payment of one month for each completed year of service or portion thereof in excess of six months. One month's salary, computed on the average of the last three months of service prior to termination, must be paid immediately or the next day.

No notice is necessary when firing full-time employees for misconduct. Termination may be based on significant illness, inability to do the job adequately, or the organization's financial and economic demands. Employers have the right to terminate an employee's employment contract if the employee is accused of misconduct such as breaking the law, being absent without leave, willful disobedience, causing damage to the employer's property, theft, fraud, illegal strike or work slowdown, or committing a crime, civil or criminal.

All terminations must be in writing and include a statement of the reasons for the dismissal. Labor courts have the authority to investigate and intervene in labor disputes.

9. Compensation in Pakistan

In Pakistan, the minimum wage varies by area.

Pakistan increased its monthly minimum pay for unskilled employees to PKR 17,500, or approximately $115, in 2019. The minimum monthly salary in the Punjab province has been raised to PKR 20,000 for 2021. There is no minimum wage for skilled workers in the nation. This is instead discussed between the employer and the employee.

10. Working hours and overtime in Pakistan

In Pakistan, the standard workweek is nine hours per day and 48 hours per week spread over six days. Each employee receives a one-hour break daily and is not permitted to work for more than six hours without taking a break. Employees who work more than 8.5 hours per day are entitled to a minimum of two breaks. Employees who are female are not permitted to work past 7:00 p.m. Seasonal employees may work up to 50-56 hours per week if necessary for technical reasons.

It is illegal for an employer to require an employee to work ten consecutive days without a holiday. No employee is permitted to work on Sunday unless they have been granted a substitute holiday within the next or previous three days.

11. Employee benefits in Pakistan

Healthcare in Pakistan is regarded as one of the most corrupt industries, with just 0.8 percent of the country's GDP presently allocated to health care. Pakistan has no national health insurance system, and 78% of the population pays for health care out of pocket. Pakistan is the only nation in the world that does not have a National Health Ministry.

In Pakistan, healthcare is provided through costly private-sector insurance firms. Employees who go on pilgrimage, such as Hajj, Umra, or Ziarat, are given exceptional leave of up to 60 days under certain Collective Bargaining Agreements.

Some businesses provide medical insurance, life insurance, and tuition reimbursement.

12. Why choose Rivermate as your global payroll provider in Pakistan

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

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