Pakistan

• * February 5th - Kashmir Day
• * March 23rd - Pakistan Day
• * April 22nd-24th - Eid-ul-Fitr
• * May 1st - Labour Day
• * June 29th - July 1st - Eid ul-Azha
• * July 28th-29th - Ashura
• * August 14th - Independence Day
• * September 28th - Eid Milad-un-Nabi
• * November 9th - Iqbal Day
• * December 25th - Birthday of Quaid-e-Azam Muhammad Ali Jinnah

Working Hours

Employees can work up to eight hours a day, or 48 hours per week.

Minimum Wage

PKR 25,000 per month.

Employee Tax

Annual income	Tax rate
Up to PKR 600,000	0%
PKR 600,000 - 1,200,000	2.5%
PKR 1,200,001 - 2,400,000	12.5% + PKR 15,000
PKR 2,400,001 - 3,600,000	20% + PKR 165,000
PKR 3,600,001 - 6,000,000	25% + PKR 405,000
PKR 6,000,001 - 12,000,000	32.5% + PKR 1,005,000
More than PKR 12,000,000	35% + PKR 2,955,000
Pension	1%
Healthcare contribution	PKR 40 (monthly flat rate)

Bonuses

There are no statutory bonus schemes in Pakistan.

Employment contracts in Pakistan should be written. They must include details of compensation in Pakistani rupees, benefits, and termination requirements.

There are six permissible contract types in Pakistan:

• Permanent
• Probationers
• Badlis (alternates who are covering an absent member of staff)
• Temporary (workers required for less than nine months)
• Apprentices
• Contract workers (fixed-term workers)

Fixed-term contracts are allowed, but there are restrictions on their use.

Annual Leave

Minimum of 14 days' paid holiday per year, after one year of service.

Sick Leave

Up to 16 days’ sick leave paid at 50% of the employee's regular wage. A medical certificate must be provided.

Parental Leave

• Maternity leave: Section 3 of the Maternity and Paternity Leave Act 2023 provides that fully paid maternity leave is granted three times during the employee's entire service and is as follows:
  • First birth: 180 days.
  • Second birth: 120 days.
  • Third birth: 90 days.

• Paternity leave: Section 3 of the Maternity and Paternity Leave Act 2023 provides that 30 days of fully paid paternity leave is granted three times during the employee's entire service.

Termination Process

Employers in Pakistan can terminate a contract, provided they give notice and/or compensation in line with legal requirements.

Pakistani law does not prescribe fair grounds for dismissal, so an employee can be terminated for reasons besides misconduct, provided notice is given. Reasons include:

• Serious illness
• Inability to perform duties
• Financial needs of the business

Employees can also end a contract, by giving notice in line with their contract terms.

Severance Pay

Employees are entitled to 30 days’ wages, per year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.