Pakistan, located in South Asia with a population of more than 200 million people, is a great place to expand and build business relationships in Asia. However, before you expand, you need...
Read MorePakistan, located in South Asia with a population of more than 200 million people, is a great place to expand and build business relationships in Asia. However, before you expand, you need to consider all the steps you must take on top of expanding overseas, including establishing payroll, hiring employees, and giving out benefits and compensation.
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Pakistan, located in South Asia with a population of more than 200 million people, is a great place to expand and build business relationships in Asia. However, before you expand, you need to consider all the steps you must take on top of expanding overseas, including establishing payroll, hiring employees, and giving out benefits and compensation.
Globalization Partners can help with Pakistan payroll outsourcing services. As a global PEO, we can use our Employer of Record solution to hire employees who work on your behalf and run your locally compliant payroll. When you choose us, you won’t have to worry about Pakistan employment compliance.
Pakistan uses an income tax scale based on different slab rates. Salaried employees owe anywhere from 5 to 35%, while individuals making less than PKR 600,000 are exempt from any taxes. These figures can change each year, so it’s important to watch for any income tax changes that could impact your employees.
Employers have to contribute to Pakistan’s Social Security program on behalf of every employee, and it’s up to 7% of an employee’s wages for social security and 5% for an employee’s Old Age Benefit. You do not have to make contributions for employees who make more than PKR 400 a day or PKR 10,000 a month.
You have four Pakistan payroll options to choose from:
Before you can choose a Pakistan payroll option, you need to establish a subsidiary in the country. Doing so will allow you to work in Pakistan legally and is required before you can begin operating. However, Globalization Partners can take this step out of the equation. You don’t need to incorporate to work with us, and you also won’t have to worry about compliance.
We recommend outlining key entitlement and termination terms in a written employment contract before adding an employee to your payroll. In Pakistan, a permanent worker can only get terminated over matters of misconduct unless you give the employee one month’s notice or wages. If an employee is terminated for any reason besides misconduct, they are entitled to severance pay equivalent to 30 days’ wages for every year of service.
If you’re planning an expansion to Pakistan, we can make the payroll process smooth. Contact us today to learn more about our services.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
