Employer of Record (EOR) in Pakistan - Hire Employees and Contractors in Pakistan

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An Employer of Record Pakistan serves as the official employer of a worker in the country. Commonly known as a Global Professional Employer Organization (Global PEO), this role encompasses overseeing various employment aspects, ensuring strict adherence to local labor laws and regulations. The responsibilities involve managing key functions such as payroll, taxes, legally mandated benefits, and the creation of employment contracts.

The Employer of Record (EOR) Pakistan is tasked with:

Ensuring strict compliance with the country’s labor laws for the worker’s employment.
Overseeing the local payroll processes.
Managing the filing of employment-related taxes and essential documentation.
Providing the worker with detailed payslips.
Ensuring the timely distribution of the worker’s salary payments.

Simplify your global expansion through our Global PEO services, offering a hassle-free solution without the need for entity setup. As your Employer of Record Pakistan, Mercans guarantees legal presence, compliance, and Intellectual Property protection, allowing your business to concentrate on its core functions. Enable a smooth global mobility experience, including work visas, while building a diverse and effective global workforce. Choose Mercans as your Employer of Record Pakistan for a compliant and efficient employment journey for your global workforce.

Things you need to know before hiring in Pakistan

Employment Contracts in Pakistan

When reviewing your appointment letter, it’s essential to take into account the following aspects.

Job Description/ Responsibilities

Ensure that the job responsibilities align with what was advertised and discussed during the interviews. Check if there are any additional responsibilities not initially mentioned.

Salary

Examine your basic and gross salary. Confirm that your salary meets or exceeds the applicable provincial minimum wage. Minimum wage in Pakistan is a provincial matter, so the correct rate depends on the location and category of employment. Consider allowances like house rent and conveyance or utility allowances where applicable.

Probationary Period

Understand the required probation period before your service is confirmed. In the private sector, this period is typically three to six months, while in the public sector, it may extend to one to two years. Check if the probationary period is extendable.

Termination of Service

After the confirmation of your service, your employer can terminate your services in accordance with the employment contract and applicable labor laws. For permanent workmen covered by the standing orders, one month’s notice or one month’s wages in lieu of notice is generally required. You also have the right to resign by giving the required contractual or statutory notice.

Transferability of Services

Determine whether your services can be transferred to other sections/departments of the organization. This can provide diversified experience but may limit specialization in your desired field.

Confidentiality Agreement

Check if there is a confidentiality agreement, preventing you from associating with a similar business during your employment and prohibiting the disclosure of organization-related information to competitors, even after termination.

In addition to the mentioned factors, your employment contract/appointment letter should explicitly state whether it will be governed by general labor laws or specific ones like the mining labor code, newspaper employees act, or road transport employees act. If the contract terms differ from applicable labor laws, the legal position should be reviewed carefully, so it’s crucial to assess the alignment with labor law provisions.

Probation Period

In the private sector, this period typically spans three to six months, while in the public sector, it extends to one to two years. Another aspect to consider is whether the probationary period is subject to extension. It is important to review the contract wording carefully, because services are often terminable more flexibly during probation subject to the applicable law and terms. The probationary period, as per the mentioned laws, is commonly limited to three months for certain categories of workers, though longer probation terms are often used in practice depending on the applicable framework.

Notice Period

Both employees and employers are generally obliged to provide a one-month notice period when terminating the employment of a permanent worker covered by the standing orders. Temporary workers are generally exempt from this notice requirement. In cases where advance notice is not given, the employer is required to offer compensation equal to one month’s wages.

Working Hours and Overtime Compensation

As per legal regulations, standard daily working hours are generally 9 hours inclusive of rest intervals, while the weekly limit for regular working hours is generally 48 hours. Overtime may extend the working day and week within the limits set by the applicable labor law, and overtime compensation should be dealt with in accordance with the relevant law and the employee’s terms of employment.

Employees vs Independent Contractors

Factor	Employee	Independent contractor
Legal basis	Works under an employment relationship / contract of service and is covered by labour laws that vary by province and sector, such as standing orders and shops/commercial establishment laws.	Usually works under a contract for services. Pakistan does not have one single nationwide “independent contractor law”; the arrangement is mainly governed by the contract plus general civil/commercial law.
Hiring practice	Hired directly by the employer under employment terms; required onboarding documents depend on the employer, province, and sector. I would not state that a medical checkup or clear criminal record is always legally required.	May be engaged directly or through an agency/platform, depending on the commercial arrangement.
Control over work	Employer usually controls working time, duties, and day-to-day supervision.	Contractor usually has more freedom over how services are performed, subject to the contract.
Personal service / delegation	Usually expected to perform the work personally.	May be allowed to delegate or subcontract if the contract permits.
Tools and equipment	Often uses employer-provided tools and business resources.	Often uses own tools and resources, though this is not the only test.
Business integration	Works as part of the employer’s organization.	Operates as an independent business or service provider.
Number of clients	Usually works mainly for one employer.	Can typically work for multiple clients unless contractually restricted.
Contract type	Employment contract; may be permanent, probationary, or fixed-term depending on the role and applicable law.	Service contract / consulting agreement / independent contractor agreement.
Payment	Paid salary or wages through payroll at agreed intervals.	Usually paid fees under contract terms, often against invoice, milestones, or deliverables.
Tax treatment	Salary is a separate head of income under the Income Tax Ordinance, and employers withhold tax from salary under the withholding rules.	Contractor income is generally taxed as business income or another non-salary head, depending on the facts. Payments for services/contracts can also attract withholding tax by the payer under the withholding regime.
Tax filing	Employee filing depends on the Income Tax Ordinance rules and current FBR requirements; I would not use the old “PKR 400,000” statement. The operative law is the Income Tax Ordinance, 2001 as amended up to 20-02-2026.	Contractors usually manage their own income tax filing through FBR/IRIS, subject to registration and filing rules applicable to their business/tax status.
Payer withholding / reporting	Employer withholds salary tax and files the relevant withholding statements. FBR states withholding agents must file withholding statements under sections 165 and 165C.	It is wrong to say there are “no additional requirements” when hiring contractors. In many cases, the payer may still have withholding obligations on payments for services/contracts.
Social security / benefits	Employees may be covered by provincial labour/social security and old-age benefit frameworks depending on the establishment and applicable provincial/federal regime. Social security is not one uniform all-Pakistan rule.	Contractors are generally not entitled to employee statutory benefits merely by being called contractors; rights depend mainly on the contract unless the relationship is really employment.
Workers’ rights	Covered by applicable employment laws on matters like working hours, leave, wages, notice, and termination, depending on province and sector.	Generally not covered by the same employee protections unless recharacterized as an employee.
Termination / disputes	Employment termination and notice are regulated by applicable labour law and employment terms.	Relationship usually ends under the service contract; disputes are generally contractual/commercial.
Business forms / engagement models	Employee is not an independent business form.	Contractor may operate as an individual, sole proprietor, partnership, or company.

Payroll in Pakistan

Minimum Wages

Minimum wages in Pakistan are set at the provincial level. Current official notifications include PKR 40,000 per month for unskilled workers in Punjab and Khyber Pakhtunkhwa. Employers should always verify the current rate applicable in the worker’s province and sector before processing payroll.

Payroll Cycle

In Pakistan, payroll frequency may occur daily, weekly, bi-monthly, or monthly, with the requirement that employees receive their salaries at least once a month.

Mercans’ Payroll Capabilities in Pakistan

Managing payroll in Pakistan requires a nuanced approach, and Mercans excels in providing meticulous attention and comprehensive solutions through its Employer of Record services.

The payroll cycle in Pakistan typically operates on various frequencies, including daily, weekly, bi-monthly, or monthly. However, the employee must be paid at least once a month, and Mercans ensures precision and compliance in this process.

In the context of Pakistan, paying salaries in the local currency not only enhances convenience for employees but also minimizes complexities related to currency exchange. Mercans facilitates seamless multi-country payment solutions, aligning with the local currency requirements.

Whether it’s setting up payroll systems, processing salaries, managing leave balances, or ensuring statutory filings and payments, Mercans’ EOR services efficiently handle every aspect of payroll administration in Pakistan.

Compliance with local regulations is paramount, and Mercans provides unwavering support to ensure strict adherence to Pakistani labor laws and statutory requirements.

As your trusted payroll partner in Pakistan, Mercans leverages its expertise in Employer of Record services to manage multi-country payroll, delivering accuracy and efficiency across various locations in the country.

Social Security in Pakistan

Employer social security and statutory employment costs in Pakistan depend on the province, employee category, and benefit structure. Common employer-side items may include:

Provincial Employees’ Social Security contributions, where applicable. In Punjab and Sindh, the published contribution rate is generally 6%, subject to the applicable wage ceiling and coverage rules.
EOBI contribution, which is generally 5% by the employer and 1% by the employee under the current framework.
Gratuity or provident fund, depending on the employer’s scheme and the applicable legal framework.
Life insurance or group insurance, where required by policy, contract, or employer practice.

It’s important to note that contribution ceilings, coverage thresholds, and employee eligibility may vary by province and by establishment.

Hiring Cost in Pakistan

In this hypothetical scenario, an employee with a gross annual salary of PKR 999,999.96 incurs additional employer costs, resulting in a total annual cost that depends on the province of employment, the applicability of social security, EOBI, gratuity or provident fund, and any other contractual benefits. The breakdown of total annual employer costs should therefore be calculated using the current provincial social security rules, EOBI rules, and the employer’s benefit design rather than relying on a single national percentage.

Hiring cost in Pakistan	Amount
Gross annual salary	PKR 999,999.96
Total annual employer costs	PKR 22,200.00 + variable statutory/contractual on-costs
EOBI (employer contribution)	PKR 22,200.00
Provincial social security	Variable / province- and establishment-dependent
Group life insurance	Variable / not a single fixed nationwide amount
Gratuity / provident fund	Variable / scheme- or contract-dependent
Festival bonus / 13th month salary	Not a universal statutory employer cost
Total annual cost	PKR 1,022,199.96 + variable on-costs

Personal Income Tax

Pakistan imposes income tax on its residents on a global scale, while non-resident individuals are taxed solely on income originating within Pakistan. This includes income received or deemed to be received, or deemed to accrue or arise within Pakistan. Salary is considered Pakistan-source income when it pertains to employment conducted in Pakistan, regardless of where it is paid.

Personal Income Tax Rates

For individuals whose income from salary exceeds 75% of taxable income:

Taxable income (PKR)	Tax on column 1 (PKR)	Tax on excess (%)
Over	Not over
0	600,000	0
600,000	1,200,000	0
1,200,000	2,200,000	6,000
2,200,000	3,200,000	116,000
3,200,000	4,100,000.00	346,000
4,100,000	—	616,000

Current Tax Year 2026 salary slabs are as follows:

Where taxable income does not exceed PKR 600,000: 0%
Where taxable income exceeds PKR 600,000 but does not exceed PKR 1,200,000: 1% of the amount exceeding PKR 600,000
Where taxable income exceeds PKR 1,200,000 but does not exceed PKR 2,200,000: PKR 6,000 + 11% of the amount exceeding PKR 1,200,000
Where taxable income exceeds PKR 2,200,000 but does not exceed PKR 3,200,000: PKR 116,000 + 23% of the amount exceeding PKR 2,200,000
Where taxable income exceeds PKR 3,200,000 but does not exceed PKR 4,100,000: PKR 346,000 + 30% of the amount exceeding PKR 3,200,000
Where taxable income exceeds PKR 4,100,000: PKR 616,000 + 35% of the amount exceeding PKR 4,100,000

*Pakistani rupees For other cases (individuals and associations of persons [AOPs]):

Taxable income (PKR)	Tax on column 1 (PKR)	Tax on excess (%)
Over	Not over
0	600,000	0
600,000	1,200,000	0
1,200,000	2,200,000	6,000
2,200,000	3,200,000	116,000
3,200,000	4,100,000.00	346,000
4,100,000	—	616,000

Withholding Requirements

In general, the entire tax is deducted at source when paying salaries to individuals at the applicable rates for salaried individuals. Various withholding tax rates apply to different goods, services, and contracts provided and executed by individuals and AOPs, based on the vendor’s status as an active taxpayer or not.

Employee Benefits in Pakistan

Statutory Leaves

It is crucial to address the unique aspects of the leave policy in this Islamic nation. Workers in Pakistan are entitled to specific days off and public holidays, ranging from maternity to pilgrimage leave, subject to the applicable federal or provincial labor law and sector-specific framework.

Navigating the intricacies of the leave policy in Pakistan can be challenging for foreign employers. To overcome this challenge, partnering with a global employer of record becomes essential. Mercans offers expertise in designing leave policies tailored to the Pakistani context and ensures compliance with local legislation, providing a hassle-free solution for managing a global team.

Public Holidays

Public holidays in Pakistan differ from those in many other parts of the world. Employees have the right to abstain from work-related activities on these days, although there are instances where employers may deny leave for certain holidays depending on the nature of the establishment and applicable law. The government categorizes holidays into public, bank, and optional. Muslim holidays, dependent on moon sightings, may vary in dates, and optional holidays require official requests from employees.

Type	Occasion	Day	Date	Notes
Mandatory public holiday	Kashmir Day	Thursday	5 February 2026	Nationwide public holiday
Mandatory public holiday	Pakistan Day	Monday	23 March 2026	Nationwide public holiday
Mandatory public holiday*	Eid-ul-Fitr (1st Shawal 1447 A.H.)	Saturday, Sunday & Monday	21, 22 & 23 March 2026	Subject to moon sighting
Mandatory public holiday	Labour Day	Friday	1 May 2026	Nationwide public holiday
Mandatory public holiday	Youm-e-Takbeer	Thursday	28 May 2026	Nationwide public holiday
Mandatory public holiday*	Eid-ul-Azha (10th Zil Haj 1447 A.H.)	Wednesday, Thursday & Friday	27, 28 & 29 May 2026	Subject to moon sighting
Mandatory public holiday*	Ashura (9th & 10th Moharram 1448 A.H.)	Wednesday & Thursday	24 & 25 June 2026	Subject to moon sighting
Mandatory public holiday	Independence Day	Friday	14 August 2026	Nationwide public holiday
Mandatory public holiday*	Eid Milad-un-Nabi (12th Rabi-ul-Awwal 1448 A.H.)	Tuesday	25 August 2026	Subject to moon sighting
Mandatory public holiday	Allama Iqbal Day	Monday	9 November 2026	Nationwide public holiday
Mandatory public holiday	Quaid-e-Azam Day / Christmas	Friday	25 December 2026	Public holiday for all
Mandatory public holiday	Day after Christmas	Saturday	26 December 2026	For Christians only

Annual Holidays

The law allows employers to grant leave only to eligible employees who have worked for the same organization for at least 12 consecutive months. Interruptions, including legal strikes, lockouts, illnesses, authorized leaves, or involuntary unemployment of specified durations, do not break continuity for the purpose of determining eligibility. Annual leave in Pakistan is generally 14 days for eligible workers under the common factory and shops frameworks, and employees are required to notify the employer in advance. Unused leave may be carried forward subject to the applicable law and policy.

Parental Leave

The Maternity and Paternity Leave Act, 2023 provides a current federal framework for maternity and paternity leave, while provincial or sector-specific rules may also apply depending on the employer and employee category.

Maternity Leave

Female employees are entitled under the Maternity and Paternity Leave Act, 2023 to maternity leave on full pay for up to three childbirths. The duration is 180 days for the first child, 120 days for the second, and 90 days for the third. After the third child, maternity leave may be granted within leave account or as extraordinary leave without pay where applicable.

Paternity Leave

Male employees can take up to 30 days of paternity leave on full pay under the federal Maternity and Paternity Leave Act, 2023, for up to three occasions during service, subject to the applicable framework.

Casual Leave

Casual leave in Pakistan is generally available under applicable labor rules for urgent personal matters. The exact number of days depends on the governing law, service rules, and sector.

Sick Leave

Sick leave entitlement depends on the applicable labor law and service rules. Employers should apply the relevant provincial or sector-specific statutory framework and contract terms.

Pilgrimage Leave

Pakistan recognizes special leave for certain religious purposes under applicable laws, service rules, or employer policy. Employers should review the governing framework before applying a fixed entitlement.

Reduced Working Hours During Ramadan

In practice, employers often reduce working hours for Muslim staff during Ramadan in accordance with applicable law, policy, and sector practice.

Termination, Resignation or Retirement

Employment dynamics involve various phases, and three significant events that mark the conclusion of an employment relationship are termination, resignation, and retirement. Each holds distinct legal implications, rights, and procedures in the context of Pakistani labor laws.

Relevant Legislation: Termination of employment in Pakistan is governed by key statutes, with the Industrial and Commercial Employment (Standing Orders), 1968, at its core. Additional regulations include the Industrial Relations Act, 2012, and Provincial Industrial Relations Acts.
Applicability of Standing Orders Ordinance, 1968: The standing orders framework generally applies to industrial and commercial establishments meeting the statutory threshold, subject to provincial variations and extensions.
Termination Process: Termination can occur due to various reasons such as resignation, dismissal, or redundancy. The process involves adherence to statutory notice periods, especially for permanent employees. Written termination letters explicitly stating the reasons are strongly advisable and are often legally important.
Grounds for Termination: Employers can terminate employment based on valid grounds, including serious illness, inefficiency, misconduct following due process, or the financial needs of the establishment.
Severance Pay: Workers terminated for reasons other than misconduct may be entitled to gratuity or other terminal benefits under the standing orders, the contract, or the employer’s benefit scheme. Where gratuity applies under the common standing orders formula, it is generally 30 days’ wages for each completed year of service or any part thereof exceeding six months.

Termination by Employee: Resignation is a voluntary act initiated by the employee, indicating their intent to terminate the employment relationship. It can occur for various reasons, such as pursuing better opportunities, personal circumstances, or dissatisfaction with the current work environment.
Notice Requirements: Permanent employees are generally required to provide one month’s notice before resigning where the standing orders apply. Temporary workers, badlis, and probationers are commonly exempt from the statutory notice requirement, subject to the applicable law and contract.

Termination Due to Retirement: Retirement marks the conclusion of a worker’s active employment, often at a specified age. Employers may have retirement policies in place, and the retirement process involves a planned exit with benefits.
Relevant Laws: While retirement is not always explicitly governed by a single labor statute, pension, provident fund, gratuity, and employer policy may govern the retirement process.
Retirement Benefits: Employees retiring from service may be entitled to retirement benefits, including pensions, provident funds, or gratuity, as stipulated by the employer’s policies or relevant laws.

Termination of Employment

Relevant Legislation: Termination of employment in Pakistan is governed by key statutes, with the Industrial and Commercial Employment (Standing Orders), 1968, at its core. Additional regulations include the Industrial Relations Act, 2012, and Provincial Industrial Relations Acts.
Applicability of Standing Orders Ordinance, 1968: The standing orders framework generally applies to industrial and commercial establishments meeting the statutory threshold, subject to provincial variations and extensions.
Termination Process: Termination can occur due to various reasons such as resignation, dismissal, or redundancy. The process involves adherence to statutory notice periods, especially for permanent employees. Written termination letters explicitly stating the reasons are strongly advisable and are often legally important.
Grounds for Termination: Employers can terminate employment based on valid grounds, including serious illness, inefficiency, misconduct following due process, or the financial needs of the establishment.
Severance Pay: Workers terminated for reasons other than misconduct may be entitled to gratuity or other terminal benefits under the standing orders, the contract, or the employer’s benefit scheme. Where gratuity applies under the common standing orders formula, it is generally 30 days’ wages for each completed year of service or any part thereof exceeding six months.

Resignation from Employment

Termination by Employee: Resignation is a voluntary act initiated by the employee, indicating their intent to terminate the employment relationship. It can occur for various reasons, such as pursuing better opportunities, personal circumstances, or dissatisfaction with the current work environment.
Notice Requirements: Permanent employees are generally required to provide one month’s notice before resigning where the standing orders apply. Temporary workers, badlis, and probationers are commonly exempt from the statutory notice requirement, subject to the applicable law and contract.

Retirement from Employment

Termination Due to Retirement: Retirement marks the conclusion of a worker’s active employment, often at a specified age. Employers may have retirement policies in place, and the retirement process involves a planned exit with benefits.
Relevant Laws: While retirement is not explicitly covered by the standing orders, other laws, such as pension and provident fund regulations, may govern the retirement process.
Retirement Benefits: Employees retiring from service may be entitled to retirement benefits, including pensions or provident funds, as stipulated by the employer’s policies or relevant laws.

Work Permit in Pakistan

In Pakistan, the process for securing a work visa is handled through the Pakistan Online Visa System and the Board of Investment. Mercans provides insights into the procedural intricacies, visa types, and essential requirements for a seamless work visa application process.

Application Process Overview

Collaboration Between Entities

The Board of Investment plays a pivotal role in Pakistan’s work visa process, and expatriate-employing companies are required to submit work visa applications through the E-Visa portal.

Recommendations and Visa Granting

Pakistan currently processes work visas online through the Pakistan Online Visa System. Applicants commonly apply for either entry or extension work visas, depending on whether they already hold a valid Pakistan visa and are residing in Pakistan.

Types of Work Visas in Pakistan

First-Time and Extension Visas

Pakistan offers two main types of work visas through the online system: first-time entry work visas and extension work visas.

Categories of Work Visas

These two primary work visa types give rise to multiple categories with varying application methods, durations, and requirements. Notable categories may include:

Standard work visa
Project-specific or sector-specific work visa categories where available on the official portal
Extension work visa categories
Nationality-specific or project-specific routes where officially provided

Validity Period of Work Visas

Understanding Durations

The validity periods of work visas vary according to the type and category selected on the official Pakistan visa portal. Employers and expatriates should confirm the current duration and entry conditions at the time of application.

Work Visa Requirements:

Documentation Essentials

Compliance with specific rules and documentation is vital for obtaining a work visa. Essential documents include:

Valid international passport
Passport photograph
Applicant’s Curriculum Vitae
Contact details of the employer
Employment letter from the employer
Company’s covering letter
Company’s registration details
Employment contract signed by the employer where required
Company’s profile

Application Process:

Three-Step Application

Applying for a Pakistan work permit involves a systematic three-step process:

Choose a Visa Type

Identify the suitable visa type on the official Pakistan immigration platform, considering eligibility requirements.

Prepare Essential Documents

Gather necessary documents such as a passport photograph, passport, and relevant employer documents.

Apply for the Visa

Follow the online application process, create a personal account, fill out the form, pay the visa fee, and await confirmation.
Processing Time: Processing time depends on the visa category, whether it is an entry visa or extension, and the applicant’s circumstances.

EOR Solutions in Pakistan

EOR for Prospective Employees

Mercans offers seamless Employer of Record (EOR) solutions for businesses that have already identified their ideal candidates in Pakistan. Our services encompass every aspect of the employee lifecycle, ensuring compliance with Pakistan labor laws and regulations.

EOR + Recruitment

For those seeking assistance in talent acquisition, our EOR and recruitment services provide a holistic solution. We tap into our extensive network and expertise to help you find, onboard, and retain top talent, streamlining your expansion into the Pakistan market.

Visa Sponsorship and Global Mobility

Navigating the intricacies of expatriate employment is simplified through our visa sponsorship and global mobility services. We facilitate the relocation of your international workforce, ensuring compliance with Pakistan immigration and employment laws.

AOR for Contractor Payments

Businesses grappling with contractor payments can leverage our Assistance on Record (AOR) services. We handle the complexities of contractor payments, guaranteeing accuracy and compliance.

Converting Freelancers to Employees

Mercans supports the transition from independent contractors to permanent employees in Pakistan. Our expertise ensures smooth conversions while adhering to legal requirements.

HCM Integration

Integrate Mercans’ EOR services seamlessly with your HCM system in Pakistan for real-time data exchange, enhanced compliance, and cost-efficiency. Trust our expertise for a unified, compliant, and efficient approach, elevating your workforce management and payroll operations.

Top Skills on Demand in Pakistan

In response to the escalating talent shortage in the corporate sector amid economic challenges, a wide range of technical and digital skills remain in demand in Pakistan.

Common in-demand tech skills encompass:

Full Stack Development
Front-End Development
Back-End Development
Mobile App Development
Web Design
E-commerce Website Development
UX/UI Design
CMS Development
Manual Testing
Scripting & Automation

Additionally, marketing skills like SEO, Social Media Marketing, Lead Generation, and essential Customer Service/Admin Support skills are highlighted. To tap into these opportunities, individuals are encouraged to explore online courses, video tutorials, and collaborative efforts with fellow freelancers, ensuring a strategic approach to skill acquisition and income generation.

From skill development to understanding markets and identifying business models, it is essential to develop a comprehensive plan that encompasses short-term and long-term goals. Furthermore, the evolving skills landscape in Pakistan places a spotlight on digital skills such as:

Web Development
Graphic Designing
Digital Marketing
Content Writing
Search Engine Optimization (SEO)

These skills offer individuals pathways to economic growth and professional success.

Best Employer of Record Pakistan

Mercans Stands Out as the Leading Employer of Record in Pakistan for the Following Reasons:

Regulatory Compliance: Mercans ensures full compliance with all regulations set by the Ministry of Overseas Pakistanis and Human Resource Development (MOPHRD) and relevant Pakistani authorities. It strictly adheres to Pakistan’s employment laws and standards, guaranteeing full legal compliance.
Independent Operation: Operating as a distinct entity, Mercans offers reliable and customised employment services tailored to the unique needs of businesses in Pakistan.
Diverse Employment Support: Mercans efficiently manages various forms of employment, including employees, freelancers, contractors, and expatriates, providing flexible solutions to meet a wide range of workforce needs.
Enterprise-Focused Solutions: Specifically designed to cater to large enterprises, Mercans delivers scalable and sophisticated services that accommodate complex organisational structures.
Multi-Currency Payroll Management: Mercans facilitates payroll processing in multiple currencies, ensuring seamless financial operations for businesses operating in Pakistan and internationally.
Global Reach and Payroll Expertise: With a robust international presence, Mercans excels in managing multi-country payroll, enabling smooth operations across borders.
Data Protection and Compliance: Mercans adheres to rigorous data protection standards, including GDPR compliance and SOC 1 & SOC 2 certifications, ensuring the highest levels of data security.
ISO Certifications: Mercans holds ISO 20000 and ISO 27001 certifications, reflecting its commitment to excellence in IT service management and information security.
Security Standards Compliance: Mercans meets the OWASP ASVS 3.0 standards, ensuring strong security practices in application development and management.
HR Blizz Platform: The proprietary HR Blizz platform is a global payroll and talent management SaaS suite that streamlines payroll processes while ensuring compliance with Pakistani regulations. With over 1,000 local experts, it provides in-depth knowledge of employment laws and business practices.
G2N Nova Payroll Engine: G2N Nova offers global gross-to-net payroll processing across more than 100 countries, making it one of the most advanced payroll engines available. It can be deployed as a SaaS solution or integrated seamlessly with major Human Capital Management and Workforce Management systems.

Conclusion

In the realm of global workforce management, Mercans’ EOR solutions in Pakistan emerge as a strategic ally for businesses seeking to navigate the complexities of international expansion. With a commitment to legal compliance, efficiency, and client success, Mercans empowers organizations to thrive in the global marketplace while ensuring a compliant and engaged workforce.

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.

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FAQs

What is an Employer of Record in Pakistan?

An Employer of Record (EOR) in Pakistan is a third-party service provider that legally employs workers on behalf of another company. The EOR manages all employment-related responsibilities, including contracts, payroll, taxes, benefits, and compliance with Pakistani labor laws, enabling businesses to hire employees without establishing a local entity.

How can foreign companies hire employees in Pakistan without setting up a local entity?

Foreign companies can engage an EOR to hire employees in Pakistan. The EOR assumes the legal employer role, handling all statutory obligations, while the client company manages the employee’s daily tasks. This approach allows businesses to operate in Pakistan without the need for a local branch or subsidiary.

What compliance, payroll, and HR services does an EOR in Pakistan provide?

An EOR in Pakistan ensures compliance with local labor laws by managing employment contracts, processing payroll, withholding and remitting taxes, making social security contributions, administering mandatory benefits, and completing statutory filings. They also handle work permits and visa sponsorship for expatriate employees.

What are the advantages of using EOR services in Pakistan?

Utilizing an EOR in Pakistan offers several advantages: it simplifies market entry by eliminating the need for a local entity, ensures compliance with complex labor laws, reduces administrative burdens, mitigates legal risks, and accelerates the hiring process.

How much does it cost to hire employees through an EOR in Pakistan?

The cost of hiring through an EOR in Pakistan varies depending on the provider and the services included. Generally, fees can range from $199 to $1,500 per employee per month. It’s advisable to consult with the EOR provider for a detailed pricing structure.

Is an EOR the best option for expanding a business into Pakistan?

An EOR is an effective solution for businesses looking to expand into Pakistan without the complexities of setting up a local entity. It provides a compliant and efficient way to hire employees, allowing companies to focus on their core operations while the EOR manages employment-related tasks.

Employer of Record (EOR) Pakistan