The global talent pool is limitless. So, if you’re on the search for new team members, consider extending beyond your physical borders. Gain access to a bigger, more affordable talent pool of skilled professionals worldwide with fresh perspectives and valuable insights.
Pakistan, for example, has a talented and massive workforce along with relatively low labor costs. With a strong focus on education, Pakistan offers a skilled workforce in various fields. If you’re interested in hiring employees from Pakistan, it’s key to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are a number of costs to keep in mind when hiring employees from Pakistan. Some are legally mandated, while others are optional but frequently offered. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Added Benefits
- Bonuses, discounts, and rewards
- Extended health plan
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Pakistan
To start, you need to take the following costs into account. Budgeting for these will ensure that you comply with Pakistan’s local laws and regulations.
Salary
The monthly minimum wage in Pakistan is PKR 25,000 (about USD 89). The average monthly salary ranges from approximately PKR 30,000 to PKR 70,000 (about USD 106 to 248). However, salaries can be higher for professionals with more experience or working in specialized fields.
Taxes and contributions
Employers in Pakistan are required to pay 5% of an employee’s salary towards a pension.
Paid leave
Employees in Pakistan are entitled to the following types of paid leave from work:
Vacation: Employees are entitled to annual leave, typically based on their length of service. The duration of paid vacation leave may vary depending on the company's policies or employment contracts but typically equates to 24 days after one year of service.
Sick leave: Employees are entitled to 16 days of sick or medical leave. This is paid at half their standard rate. Paid sick leave requires a medical certificate.
Maternity Leave: Female employees who worked for one employer for at least four months before giving birth get three months of fully paid maternity leave. After childbirth, they must take six weeks of post-natal leave. Termination is prohibited during maternity leave. To qualify, the employee needs to contribute for at least 180 days in the year before the expected birth.
Public holidays: Pakistan has 17 public holidays throughout the year. Employees are typically entitled to have these days off, and in most cases, they receive full pay.
Overtime pay
In Pakistan, employees who work beyond their standard hours receive overtime pay. The rate of overtime pay is 1.5 times the regular hourly wage for work done on weekdays and Saturdays. For work done on Sundays or public holidays, the rate is double the regular hourly wage.
Severance pay
In Pakistan, employees are entitled to severance pay based on their length of service with an employer.
- Less than one year of service: No severance pay
- One to five years of service: One month's salary
- Five to ten years of service: One and a half month's salary
- More than ten years of service: Two months' salary
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition around the world, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work.
Perks and Rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer their workers rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours. Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it is a good idea to put aside some money for your distributed team’s workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Pakistan’s big cities.
You can set your team up at Catalyst Studios, located in Lahore, for as low as 20 USD a month. Conveniently based in Karachi, TheWorkSpace is another good option that offers dedicated desks for around 140 USD a month.
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Pakistan. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
