Talent knows no bounds. You can find skilled professionals in countries all over the world. So if you’re on the hunt for new team members, consider hiring from abroad. Pakistan, for example, has a massive pool of English-speaking professionals ready for a challenge.
An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to hire, onboard, and pay employees compliantly. Read on to learn why you should set your sights on Pakistan and how to go about it effectively.
Why Hire Talent in Pakistan?
Pakistan is home to the fifth largest population globally, boasting nearly 230 million people. With a median age of 22, the populace is overwhelmingly young, bilingual, and the world's fourth-highest percentage of English speakers.
Hundreds of thousands of tech experts and more than 100 million mobile broadband consumers are among this massive population. As a result, Pakistan’s start-up scene is growing. Every year, young professionals enter the job market and redefine Pakistan’s position on the world stage. The former agriculture hub has transformed into a thriving start-up scene flush with VC investments.
A huge plus to hiring talent from Pakistan is the cost. You can recruit highly skilled professionals for a fraction of the cost of hiring in North America and Europe. So, if you’re in the market for talent - consider looking to Pakistan.
How Can I Legally Hire an Employee in Pakistan?
Things can get complicated if you want to hire talent in Pakistan on your terms. To hire in Pakistan, businesses must establish an entity based in the country. The process can be a headache and is only worthwhile if you intend to practice business in Pakistan long-term.
EORs offer an easy, straightforward way to hire full-time employees from Pakistan. An EOR, like Borderless, serves as a middleman and facilitates the processes involved in global hiring. EORs already have an entity in place that’s capable of hiring talent, onboarding them, and ensuring local compliance.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks in hiring globally so you can focus on growing your business. Hiring laws vary considerably worldwide, and keeping up with constantly changing regulations is challenging. EORs take care of the following processes:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, etc.
Employee Insurance and Benefits
Staying competitive is always important, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
In Pakistan, full-time and part-time workers have the right to 14 working days of paid time off (PTO) every year. PTO accrues at a monthly rate of 1.17 days. Once they have worked for a year, employees are eligible for annual leave.
Employees are also entitled to an additional ten days of leave, typically utilized for personal and sick days. In addition to other leaves, such as maternity and paternity leave, employees in Pakistan are also entitled to take the following public holidays off.
- March 23: National Day of Pakistan
- April 7: Good Friday
- April 10: Easter Monday
- April 24: *Eid-ul-Fitr (1st Shawal)
- May 1: Labour Day
- May 8: Bank Holiday for the Coronation of King Charles III
- May 29: Spring Bank Holiday
- June 29 & 30: *Eid-ul-Azha (10th Zil Hajj)
- July 28: *Ashura (10th Moharram)
- August 14: Pakistan Independence Day
- August 28: Summer Bank Holiday
- September 28: *Eid Milad-un-Nabi (12th Rabi-ul-Awal)
- November 9: Allama Iqbal Day
- December 25: Quaid-e-Azam Day/Christmas
- December 26: Boxing Day
Taxes & Social Security Contributions
Individual income tax rates in Pakistan range from 0% to 35%. Progressive rates are used to determine income tax. The status of the home and the number of children are just two additional factors that may impact total rates.
Employers must pay a nominal social security and employee's Old Age Benefit contribution. Additionally, the employee must contribute to their old age benefit. Employers are in charge of monthly collection and payment.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Pakistan?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways an EOR can positively impact your business. Sign up with Borderless to explore what an EOR can do for you.
How Do I Choose the Right EOR for Me?
With so many EORs to choose from, it’s important to determine which one suits your individual needs. It’s helpful to keep the following considerations in mind.
- Expertise: Choose an EOR with a history of hiring, onboarding, and managing employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow stress-free.
- Support: Turn to EORs with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record Your Company Needs
Broaden your horizons by hiring global talent. Use Borderless as your EOR of choice to expand your talent base and get the most out of your global hiring experience. Get in touch and 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.
