Minimum Wage
General
The national minimum wage in Pakistan is 19,870 PKR per month.
Payroll
Payroll Cycle
In Pakistan, the payroll frequency can be daily, weekly, bi-monthly or monthly. The employee must pay salaries at least once a month.
13th Salary
13th-month payments are not legally required.
Working Hours
General
The maximum working week in Pakistan consists of 48 hours a week, 9 hours a day.
Overtime
All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed.
All overtime hours in excess of 48 hours a week are paid at an overtime compensation rate; this rate is 200.00% of the employee’s regular pay. Employees receive compensation equivalent to 300.00% of their typical pay for overtime hours worked on public holidays.
Working Week
Monday-Friday
Leave
Paid Time Off
In Pakistan, employees are entitled to 14 calendar days of fully paid annual leave following 12 months of consecutive service. This leave cannot be taken in part and must be taken in its entirety; leave of up to 14 days can be carried over into the following vacation year.
Public Holidays
17 public holidays.
Sick Days
Employees are entitled to 10 days of casual sick leave upon contingent situations such as sudden illness or other urgent purposes.
Employees are entitled to 24 days of compensated sick leave, 16 days at 100.00% of the employee’s average earnings, and eight days at 50.00%. All sick leave must be evidence by a certified medical certificate issued by a doctor.
Following the initial 16 days of fully paid sick leave, employers can offer their employees a sickness benefit for 121 days at 75.00% of their regular salary. In the unfortunate case that an employee is diagnosed with tuberculosis or cancer, they are granted a maximum of 365 days leave at 100.00% of their regular income.
The employee must have at least 90 days of contributions in the six months before sickness or injury to receive benefits.
Maternity Leave
Female employees are entitled to three months of paid maternity leave following four months working for a single employer before giving birth. The employee must take a six-week post-natal leave period.
Employees are protected during their maternity leave and cannot be terminated during this time.
To receive benefits, the employee must have at least 180 days of contributions in the year before the child’s expected birth.
Paternity Leave
Fathers are eligible for one month of leave following the birth of their first three children.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
Employees in Pakistan are entitled to Iddat leave. Iddat leave is applicable if a secured person dies while in receipt of a sickness or injury benefit. In this case, their survivors are entitled to a death grant equal to the daily rate of sickness benefit multiplied by 30, but it should not be less than 1500 PKR.
Iddat leave is also applicable if a female employee loses her husband.
Termination
Termination Process
The termination process varies according to how the Employment Agreement and Collective Agreement are in place and is based on the type of contract and reason for termination. Both employees and employers should provide terminations in writing, and the reasoning for dismissal must be sufficient.
Notice Period
Both employees and employers require a notice period of one month to terminate an employment contract. Advanced notice is not necessary for temporary workers.
If advanced notice is not provided, then an employer must pay a monthly salary in its lieu.
Severance Pay
Except in the circumstance of misconduct, employees receive severance pay amounting to 30 days’ wages for each year of completed service following their discharge from work.
Probation Period
In Pakistan, probation periods are outlined in the employees’ employment contracts. The probation period is typically three months long.
VISA
VISA
Work visas are usually granted for one year once approved by the Board of investment; these must be renewed and re-approved annually. Pakistan has several specific visa applications for particular countries – each with differing requirements and levels of responsibility.
Foreign Workers looking to work in Pakistan must obtain their working visa at the Pakistani Consulate in their country of residence. An essential requirement for the visa is an Official Invitation/Letter from the Chamber of Commerce and Industry on behalf of sponsoring company in Pakistan. The letter must indicate the length of stay, place of stay, etc.
Once a work visa is granted for three months, an applicant can seek an extension of up to 2 years with multiple entries.
Following the completion of 2 years, an employee can apply for permanent status.
VAT
General
The standard rate of VAT in Pakistan is 17.00%
