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How to hire remote employees in
Laws about hiring are complicated, and the same is true in Pakistan. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Pakistan, you have two real options when it comes to hiring. We’ll detail both below.
If you want to successfully hire in
Pakistan
, you have two options:
Laws about hiring contractors are significantly more simple in
Pakistan
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Pakistan
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Pakistan
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Pakistan
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Pakistan
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Pakistan than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Pakistan.
PTO is calculated by the:
There are 10 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Female employees are eligible to take 3 months of paid maternity leave.
The six-week post-natal leave is obligatory. In order to receive maternity leave, the employee should be working for the same employer for at least 4 months before she gives birth.
No employer is permitted to terminate the female employee while she is on maternity leave.
In order to receive benefits, the employee must have at least 180 days of contributions in the year before the expected birth of the child.
Fathers who are eligible will receive one-month leave for each of their first three children.
No statutory law for parental leave.
None.
None.
If a female employee’s husband dies, the employer must provide paid Iddat leave. This is a waiting period that the employee receives a normal wage.
A written letter should be provided when terminating a contract and reasoning for the termination must be sufficient.
The notice period in Pakistan is:
Both employee and employer should provide a months’ time notice.
Advanced notice is not required for temporary workers. If advance notice is not provided, a monthly salary in its lieu shall be provided.
When employees are discharged from work, they are given severance pay.
The pay amounts to 30 days’ wages for each completed year of service. Employees do not receive severance pay if they are dismissed for misconduct.
The probationary period typically lasts 3 months.
Normal working hours are a maximum of 9 hours a day and 48 hours a week. Anything over this is considered overtime.
If employees work more than stipulated 9 hours per day and 48 hours per week, they are entitled to overtime pay.
Overtime pay in Pakistan is 200% the employees’ regular pay. During holidays employees receive 300% the pay rate.
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