Pakistan has a population of 197 million people, with key industries including mining, manufacturing, oil and gas. There are many options for company formation, and the tax rates vary by type of company. The tax year ends June 30th each year, but companies can request a different tax year.
Labor and Payroll Considerations in Pakistan:
- There is no National minimum wage, but there are regional minimum wages in certain territories. For example, in the Islamabad Capital Territory, the minimum wage is PKR 17,500 per month
- A letter of appointment is required for new employees
- Labor contracts do not need to be written, but if written must specify the nature of employment, duration, pay, and benefits
- Income and payroll tax, and social security are withheld from employee pay
- Foreign workers need a work visa from the Pakistani consulate in their country of origin
To get started in Pakistan, or to simplify operations there, Blue Marble has cloud-based payroll technology with customized reporting so you can view your payroll in real-time across all countries and currencies. Our US-based service team and in-country experts are here to help when questions come up. To learn more about Blue Marble solutions for global payroll and compliance, click here