EOBI adds 5% of the minimum wage (PKR 37,000/month) to every hire — and that’s just one layer. Pakistan runs a dual federal–provincial labour regime: Sindh has SESSI (Sindh Employees Social Security Institution), other provinces have their own equivalents, and gratuity at 30 days’ wages per year of service vests after one year. Most global EORs don’t operate here directly; the ones that do typically use a local partner entity. Budget for that complexity.

Pakistan Employment at a Glance

Social Security: EOBI, SESSI, and What Your EOR Handles

Pakistan’s social security is split: federal EOBI (Employees’ Old-Age Benefits Institution) and province-level health/social security schemes. Your EOR calculates and remits both.

EOBI (federal)

• Employer: 5% of the minimum wage (PKR 37,000 = PKR 1,850/month per employee at floor).
• Employee: 1% of minimum wage.
• Capped at minimum wage — so high earners don’t pay more on the employer side; the statutory cost is fixed per head.

SESSI (Sindh) and provincial equivalents

• In Sindh, SESSI covers medical care and cash benefits; employer and employee contributions apply.
• Punjab, Khyber Pakhtunkhwa, and Balochistan have their own institutions with similar logic.
• Rates and caps vary by province. Your EOR must be registered in the correct province for the employee’s place of work.

A serious EOR handles registration with EOBI and the relevant provincial body, monthly filing, and any late-payment penalties. Confirm they have a local partner or entity in the province where you’re hiring.

Labour Law — Key Provisions for Foreign Employers

Federal and provincial laws both apply. Below are the numbers that affect cost and risk.

Leave

• Annual leave: 14 days per year (after 1 year of service).
• Sick leave: 16 days per year in most provinces, often at half pay; check the provincial act.
• Maternity leave: 12 weeks.
• Public holidays: Roughly 15–20 per year depending on province and Islamic calendar.

Overtime and working time

• Standard week: 48 hours.
• Overtime: typically 2× the ordinary rate; daily and weekly limits apply under provincial law.

Gratuity and notice

• Gratuity: 30 days’ wages for each completed year of service, payable after 1+ years. This is a real liability — budget for it from day one.
• Notice: 1 month is typical; contracts and provincial law can require more.

Termination for cause usually requires a fair process (inquiry, show-cause, etc.). Wrongful dismissal can lead to reinstatement or compensation. Your EOR should own the process; you own the decision.

Work Permits

Foreign nationals need authorisation to work. Routes include the Board of Investment (BOI) and provincial labour/immigration authorities. Process and timelines are slower and less predictable than in Singapore or India — expect several weeks and document-heavy applications.

The EOR or its local partner typically arranges the work permit and liaises with the relevant ministry. Confirm that your provider actually sponsors work permits in Pakistan; not all do.

How Long Does EOR Onboarding Take in Pakistan?

• Local national (Pakistani): Roughly 1–3 weeks, depending on EOBI and provincial registration status of the EOR.
• Foreign national (work permit required): 4–8 weeks or more.

Pakistan is not a same-week onboarding market. Confirm exact timelines with the EOR before committing to a start date.

Top EOR Providers for Pakistan

Most major EORs have limited or no direct Pakistan coverage. Deel, Remote, and Multiplier do not list Pakistan as a first-class EOR market; Remote mentions Pakistan in a contractor context. Coverage is typically via a local partner.

1. INS Global — Often cited for Pakistan and other emerging markets; usually operates through in-country partners.
2. Regional or specialist providers — Smaller firms focused on South Asia sometimes offer Pakistan with a local entity. Verify entity type, EOBI/provincial registration, and work-permit capability before signing.

If you’re hiring in Pakistan for tech or outsourcing (the market is large and young — 220M+ population), insist on a provider that can show active EOBI and provincial compliance, not just a contractor-style arrangement.

Frequently Asked Questions About EOR in Pakistan

Is gratuity really payable after only one year?
Yes. Thirty days’ wages per year of service applies after one completed year. It vests on termination or retirement. Plan for it in your total cost of employment.

Do I need to register with EOBI myself if I use an EOR?
No. The EOR (or its local legal entity) is the registered employer and handles EOBI and provincial social security. You don’t need a local company or BOI registration for EOR hires.

Which province’s labour law applies?
The province where the employee ordinarily works. Sindh has SESSI and its own labour act; Punjab and others have their own. Your EOR must be set up for that province.

Can I hire a foreign national in Pakistan through an EOR?
Only if the EOR (or partner) can sponsor a work permit. Not all providers do. Ask explicitly and get the process and timeline in writing.

What’s the real cost of a PKR 100,000/month hire through an EOR?
Salary PKR 100,000. Add EOBI employer 5% of minimum wage (PKR 1,850). Add provincial social security (rate depends on province). Add gratuity accrual (30 days per year = roughly 8.3% of annual salary, reserved for payout). Add EOR fee (often $150–250/month equivalent). All-in is meaningfully above the gross salary.

Why do so few global EORs cover Pakistan?
Dual federal–provincial compliance, work-permit friction, and lower volume than India or the Philippines make it a niche market. Most providers that “cover” Pakistan do so via a partner — which is fine if the partner is compliant and the EOR stands behind the liability.

AK Anchal Katyal Published January 1, 2026