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Pakistan has EOBI (flat PKR 1,600/month employer), provincial social security, progressive income tax, and statutory Eid bonuses. One of the fastest-growing tech talent markets for USD-paying employers. Rippling handles FBR, EOBI, and PESSI/SESSI compliance.
Pakistan is a South Asian economy with one of the world's largest and fastest-growing technology talent pools. With over 220 million people and 300,000+ IT graduates annually, Pakistan has emerged as a major destination for software development outsourcing and remote hiring. Karachi is the financial hub; Lahore and Islamabad are the primary tech centers. Pakistan uses the Pakistani rupee (PKR). Significant PKR depreciation since 2022 has made Pakistani talent highly cost-competitive for USD/GBP/EUR-paying employers.
| Contribution | Rate | Notes |
|---|---|---|
| EOBI (employer) | PKR 1,600/month flat | Per employee, fixed amount |
| Provincial Social Security (employer) | ~6% | Province-specific rate on wages up to ceiling |
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| Contribution | Rate | Notes |
|---|---|---|
| EOBI (employee) | PKR 400/month flat | Fixed amount regardless of salary |
| Provincial Social Security (employee) | ~1% | Province-specific; Punjab PESSI, Sindh SESSI |
| Income tax | 0–35% | Progressive; withheld monthly by employer |
| Annual Salary (PKR) | Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001–1,200,000 | 5% |
| 1,200,001–2,200,000 | 15% |
| 2,200,001–3,200,000 | 25% |
| 3,200,001–4,100,000 | 30% |
| Above 4,100,000 | 35% |
Tax year: July–June. Monthly withholding by employer; remitted to FBR. Annual salary tax return filed by employee.
Notice: 1 month (standard). Severance (retrenchment): 30 days' wages per year of service. Unfair dismissal: reinstatement or 3–12 months' wages. Gratuity: many employers provide 1 month's basic salary per year of service on retirement/long service.
Pakistan's income tax for salaried employees uses a progressive slab system updated annually in the federal budget. For FY2024–25: income up to PKR 600,000/year is exempt; above that, rates rise progressively to 35% for income above PKR 6,000,000/year. The employer withholds income tax monthly and remits to FBR. Pakistan's tax year runs July–June.
Pakistan has two mandatory Eid bonuses (Eid-ul-Fitr and Eid-ul-Adha) — these are statutory requirements under the Payment of Wages Act for many employee categories. The standard is one month's basic salary per Eid. Many employers also provide a third bonus at year-end. Budget for 2–3 extra months of salary per year for competitive Pakistani packages.
Pakistan's minimum wage is set provincially. Punjab and Sindh: PKR 37,000/month (2024). KPK: PKR 36,000/month. Balochistan: PKR 32,000/month. Minimum wages in Pakistan have been increasing significantly due to inflation.
Pakistan has a massive English-speaking tech talent pool, with over 300,000 IT graduates per year. Karachi, Lahore, and Islamabad are established tech hubs. Pakistani developers are highly sought by US, UK, and Middle Eastern companies. The PKR has depreciated significantly, making Pakistani talent extremely cost-competitive for USD-paying employers — senior developers often earn USD 800–2,500/month equivalent.
